Calculator Project Outline The calculator is designed to identify the fastest way to pay off multiple debts. The calculator will output a detailed amortization schedule and graphic representation of scheduled interest expense and time until payoff. The data file will be “saved” to the local machine and the calculator will have the ability to “browse” for an existing data file, retrieve it, and populate the calculator with the retrieved data. An example of a similar calculator may be seen at: www.dinkytown/java/debtrolldown.html The calculator basic functions are as follows: Data input Calculate the payoff schedule, (system function) Output amortization schedule and graph
Input Fields:
*Creditor name, current balance, payment amount, payments left, interest rate * = these fields are required Number of fields/Naming (1) “extra cash amount”, applied to debt each month (one data entry field only) * (10) credit card fields * (1) 2nd mortgage fields * (1) HELOC field * (2) auto loan fields * (4) student loans fields * (1) misc. field Each input field should be “color coded” within it’s category. Credit card input will be input into 10 different colored fields. Student loan fields will be four different colors but may share the same colors as the credit card fields. The color coding will be used to identify the debt on the amortization output.
System Function 1 User will input debts in fields provided: (initial input) If no payment amount is input, calculate payments at 4% of unpaid balance If no number of payments until payoff is input, calculate time to payoff (months)
2 Order the debts: Priority 1 debts: Those that can be paid within 6 months, listed from highest interest rate first Priority 2 debts: Those that can be paid within 6-12 months listed from highest interest rate first. Priority 3 debts: All other debts listed from highest interest rate first The calculator will schedule the payoff of debts in order starting with the first priority 1 debt, then , the second priority 1 debt, until all priority 1 debts are retired. then priority 2 debts are retired in order, and then finally the priority 3 debt is retired in order. 3 Apply “extra cash payment” Apply “extra cash payment” (see initial input) plus scheduled payment amount (see initial input) to the first priority debt 1 account until balance paid in full. Example first priority debt1: Extra cash payment amount = $25.00 First priority debt1 payment amount = $100.00 Total monthly payment of $125.00 applied to first priority debt1 until 0 balance Remove first priority debt 1 from amortization schedule when balance = 0 As a debt is retired, the payment amount used to retire the previous debt is added to the payment of the next priority debt’s payment amount. “extra cash payment” increases by the amount of the retired debts payment amount. 3a Apply extra cash payment amount (input) plus 100% of payment amount of first priority debt1, plus scheduled payment (input) of the second priority debt 1 until the is balance = 0 Example second priority debt1: “Extra cash payment” = $25.00 plus payment amount used to payoff first priority debt 1 = $100.00 Total new “extra cash payment” = $125.00 Payment amount required for priority debt 2 = $75.00 Total payment of $200.00 is applied each month to the second priority debt2 until the balance is paid in full. Remove second priority debt 1 from amortization schedule when balance = 0 3b This pattern continues until each debt is paid off in order of priority. As each debt is paid in full, the “extra cash payment” amount increases by the amount of the retired debt payment amount. That new “extra cash payment” plus the next priority debts required payment is combined to increase the payment size applied to each new priority debt.
Input Screen Content: 1- data input fields, color coded 2- graph: The graph should be the same type as the screen shot below. The graph should show: The total time and cumulative interest paid over the life of the debts as written, versus the total time and cumulative interest paid over the life of the debts using the “extra cash amount” payment method described above. 3- A text box showing the differences described in #2, plus text and calculation “months until debt free”. 4- A “calculate” button 5- A “View My Plan” button to show the amortization schedule. 6- A save button to save the data file to the local machine 7- A retrieve button to browse and restore a data file stored on the local machine. Output Requirements 1- Detailed amortization schedule including: debt name, payment amount, amount applied to interest , amount applied to principal, and balance. 2- Printable output 3- Header on amortization schedule containing the graph and text box showing comparison of both payoff methods plus “months until debt free” 4- Each debt is to be listed in order of priority, named by category, and amortized separately on the schedule. The text for each debt will be displayed in color, coded to match the “input fields” color code. 5- Each debt is listed, in descending order of priority, will be amortized with the cumulative monthly payment amount of all previously retired debts, plus the “extra cash amount”, plus the required payment amount due for that debt.