A "Mortgaga" is a hypothetical financial instrument we've defined for this calculator. It represents a specific type of asset financing where the value of an asset (like a unique collectible, intellectual property, or even a specialized piece of equipment) is used as collateral for a loan. Unlike traditional mortgages which are secured by real estate, a Mortgaga applies to a broader range of assets. The calculation aims to determine the periodic payment and total cost associated with financing this asset over a specified period.
How the Mortgaga Calculator Works
The Mortgaga Calculator uses standard loan amortization formulas, adapted for our "Mortgaga" concept. The primary goal is to determine the consistent periodic payment required to fully repay the financed amount (the "Base Price" in this context) plus the applicable "Mortgaga Rate" over the specified "Mortgaga Duration" in months.
The Formula for Monthly Mortgaga Payment:
The core of the calculation relies on the annuity formula for loan payments. Here's how it's broken down:
n = Total Number of Payments (Mortgaga Duration in Months)
The formula used is:
M = P [ r(1 + r)^n ] / [ (1 + r)^n – 1]
Calculating Total Cost and Total Mortgaga Amount:
Once the monthly payment (M) is calculated, we can determine the total amount paid over the life of the Mortgaga and the total interest paid.
Total Mortgaga Amount Paid = Monthly Mortgaga Payment (M) * Number of Payments (n)
Total Mortgaga Interest Paid = Total Mortgaga Amount Paid – Principal Loan Amount (P)
Use Cases for a Mortgaga Calculator:
While "Mortgaga" is a conceptual term for this calculator, the underlying principles apply to financing various specialized assets. Potential users might include:
Collectors financing rare items.
Businesses securing loans against specific equipment or intellectual property.