Java Program to Calculate Loan Payment

Java Program to Find the Payments for a Loan:

The most popular financial calculation is the one that computes the regular payments on a loan, such as a car or house loan. The payments on a loan are found by using the following formula:

Payment = (intRate * (principal / payPerYear)) /
(1 – ((intRate / payPerYear) + 1) – payPerYear * numYears)

where

  • intRate specifies the interest rate,
  • principal contains the starting balance,
  • payPerYear specifies the number of payments per year,
  • numYears specifies the length of the loan in years.

The following applet is called RegPay. It uses the preceding formula to compute the payments on a loan given the information entered by the user. RegPay is a Swing-based applet. This means that it extends the JApplet class and uses the Swing classes to provide the user interface. Notice that it also implements the ActionListener interface.

Loan Calculator Java Source Code:

import java.awt.*;
import java.awt.event.*;
import javax.swing.*;
import java.text.*;
public class RegPay extends JApplet
implements ActionListener {
JTextField amountText, paymentText, periodText, rateText;
JButton doIt;
double principal;
double intRate;
double numYears;
final int payPerYear = 12;
NumberFormat nf;
public void init() {
try
{
SwingUtilities.invokeAndWait(new Runnable () {
public void run() {
makeGUI();
}
});
} catch(Exception exc) {
System.out.println("Can't create because of "+ exc);
}
}
private void makeGUI() {
GridBagLayout gbag = new GridBagLayout();
GridBagConstraints gbc = new GridBagConstraints();
setLayout(gbag);
JLabel heading = new
JLabel("Compute Monthly Loan Payments");
JLabel amountLab = new JLabel("Principal ");
JLabel periodLab = new JLabel("Years ");
JLabel rateLab = new JLabel("Interest Rate ");
JLabel paymentLab = new JLabel("Monthly Payments ");
amountText = new JTextField(10);
periodText = new JTextField(10);
paymentText = new JTextField(10);
rateText = new JTextField(10);
paymentText.setEditable(false);
doIt = new JButton("Compute");
gbc.weighty = 1.0; // use a row weight of 1
gbc.gridwidth = GridBagConstraints.REMAINDER;
gbc.anchor = GridBagConstraints.NORTH;
gbag.setConstraints(heading, gbc);
gbc.anchor = GridBagConstraints.EAST;
gbc.gridwidth = GridBagConstraints.RELATIVE;
gbag.setConstraints(amountLab, gbc);
gbc.gridwidth = GridBagConstraints.REMAINDER;
gbag.setConstraints(amountText, gbc);
gbc.gridwidth = GridBagConstraints.RELATIVE;
gbag.setConstraints(periodLab, gbc);
gbc.gridwidth = GridBagConstraints.REMAINDER;
gbag.setConstraints(periodText, gbc);
gbc.gridwidth = GridBagConstraints.RELATIVE;
gbag.setConstraints(rateLab, gbc);
gbc.gridwidth = GridBagConstraints.REMAINDER;
gbag.setConstraints(rateText, gbc);
gbc.gridwidth = GridBagConstraints.RELATIVE;
gbag.setConstraints(paymentLab, gbc);
gbc.gridwidth = GridBagConstraints.REMAINDER;
gbag.setConstraints(paymentText, gbc);
gbc.anchor = GridBagConstraints.CENTER;
gbag.setConstraints(doIt, gbc);
add(heading);
add(amountLab);
add(amountText);
add(periodLab);
add(periodText);
add(rateLab);
add(rateText);
add(paymentLab);
add(paymentText);
add(doIt);
amountText.addActionListener(this);
periodText.addActionListener(this);
rateText.addActionListener(this);
doIt.addActionListener(this);
nf = NumberFormat.getInstance();
nf.setMinimumFractionDigits(2);
nf.setMaximumFractionDigits(2);
}
public void actionPerformed(ActionEvent ae) {
double result = 0.0;
String amountStr = amountText.getText();
String periodStr = periodText.getText();
String rateStr = rateText.getText();
try
{
if(amountStr.length() != 0 &&
periodStr.length() != 0 &&
rateStr.length() != 0) {
principal = Double.parseDouble(amountStr);
numYears = Double.parseDouble(periodStr);
intRate = Double.parseDouble(rateStr) / 100;
result = compute();
paymentText.setText(nf.format(result));
}
showStatus("");
} catch (NumberFormatException exc)
{
showStatus("Invalid Data");
paymentText.setText("");
}
}
double compute() {
double numer;
double denom;
double b, e;
numer = intRate * principal / payPerYear;
e = -(payPerYear * numYears);
b = (intRate / payPerYear) + 1.0;
denom = 1.0 - Math.pow(b, e);
return numer / denom;
}
}

Output:
Java Program to Calculate Loan Payment