Loan Calculator
with Exchange Rate
How much you actually will pay for a low interest rate loan in TRYApplicable to any other currency rapidly losing value against USD when you’re earning USD.
High Inflation Market
The goal is to see if taking out a loan in a high inflation, low interest rate market makes sense when the base income is more stable like USD. Similar to everything in life,the variables you’ll set in this calculator is a bet. A bet on future. I didn’t add any prediction models because it is hard to predict what’ll happen. Please think thoroughly, and make your own research.
Volatile Exchange Rate
Another downside of high inflation is the volatility and increase in the exchange rate. For Turkey, the USDTRY was trading around 1.80 in 2012. In 10 year period it increased %800 and it was an exponential growth. That’s why in this calculator the increase in exchange rate is set to monthly. Check the table to see how the exchange rate is gonna look like in the future.
Revenue
If you expect to have revenue by using the loan, you can add the monthly base , growth, and growth period. With these three variables it is possible to simulate most types of revenue. For example, for a rental income the growth level is limited to %17 per year in Turkey. If you know what rental market looks like you will be able to calculate your revenue for the period you’ll be paying this loan. Also take into account, due to high inflation there can be a higher growth rate depending on the usage of capital.