Co-Signer Loan Calculator ๐ค
Calculate the regular payment and assess the **risk exposure** for a co-signer if the primary borrower stops making payments.
Loan Parameters
Co-Signer's Liability
A co-signer is equally and legally responsible for the loan. If the primary borrower misses a payment or defaults, the lender can pursue the co-signer for the **entire remaining balance**, not just missed payments.
1. Monthly Payment (EMI)
Calculated using the standard fixed-rate loan formula.
EMI = P [ i(1 + i)โฟ / ( (1 + i)โฟ - 1 ) ]
Where:
P = Principal
i = Monthly Rate (Annual Rate / 1200)
n = Total Loan Term in Months
2. Remaining Balance (Risk Exposure)
This is the balance due if the borrower defaults after $t$ payments.
Balance Due = P(1 + i)แต - EMI [ ((1 + i)แต - 1) / i ]
Where:
T = Months already paid
The remaining balance represents the maximum financial liability of the co-signer at the time of default.