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Loan calculator

Yesterday I came across a handy loan payment calculator in C# by Jonathon Wood via Alvin Ashcraft’s Morning Dew links. The implementation appears to be idiomatic C# using a class, mutable properties and wrapped in a host console application to display the results.

I thought it’d be fun to spend a few moments re-implementing it in F# so it can be executed in F# interactive as a script or a console application.

Rather than use a class, I’ve plumped for a record type that captures all the required fields:

/// Loan record
type Loan = {
   /// The total purchase price of the item being paid for.
   PurchasePrice : decimal
   /// The total down payment towards the item being purchased.
   DownPayment : decimal
   /// The annual interest rate to be charged on the loan
   InterestRate : double
   /// The term of the loan in months. This is the number of months
   /// that payments will be made.
   TermMonths : int


And for the calculation simply a function:

/// Calculates montly payment amount
let calculateMonthlyPayment (loan:Loan) =
   let monthsPerYear = 12
   let rate = (loan.InterestRate / double monthsPerYear) / 100.0
   let factor = rate + (rate / (Math.Pow(rate+1.,double loan.TermMonths) 1.))
   let amount = loan.PurchasePrice - loan.DownPayment
   let payment = amount * decimal factor


We can test the function immediately in F# interactive

let loan = {
   PurchasePrice = 50000M
   DownPayment = 0M
   InterestRate = 6.0
   TermMonths = 5 * 12

calculateMonthlyPayment loan


Then a test run (which produces the same results as the original code):

let displayLoanInformation (loan:Loan) =
   printfn "Purchase Price: %M" loan.PurchasePrice
   printfn "Down Payment: %M" loan.DownPayment
   printfn "Loan Amount: %M" (loan.PurchasePrice - loan.DownPayment)
   printfn "Annual Interest Rate: %f%%" loan.InterestRate
   printfn "Term: %d months" loan.TermMonths
   printfn "Monthly Payment: %f" (calculateMonthlyPayment loan)
   printfn ""

for i in 0M .. 1000M .. 10000M do
   let loan = { loan with DownPayment = i }
   displayLoanInformation loan


Another option is to simply skip the record and use arguments:

/// Calculates montly payment amount
let calculateMonthlyPayment(purchasePrice,downPayment,interestRate,months) =
   let monthsPerYear = 12
   let rate = (interestRate / double monthsPerYear) / 100.0
   let factor = rate + (rate / (Math.Pow(rate + 1.0, double months) - 1.0))
   let amount = purchasePrice - downPayment
   let payment = amount * decimal factor
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