Rajgad Dnyanpeeth Technical Campus Polytechnic, Dhangawadi

Tal. Bhor, Dist. Pune – 412206 (M.S) India

A MICRO PROJECT REPORT

On
“Loan Calculator’’

Is Submitted by -
Mr. Pansare Sairaj Ganesh
Mr. Pawar Chetan Ram
Mr. Mandhare Siddhant Ganesh
Mr. Yadav Aryan Shashikant
Under the guidance of

Prof. Khade P.A

Subject: - Object Oriented Programing Using C++

In partial fulfilment of

Diploma in S.Y Computer Engineering

(Academic Year 2024-2025)
Maharashtra State Board of Technical Education, Mumbai
 Certificate

This is to certify that following students

Mr. Pansare Sairaj Ganesh

Mr. Pawar Chetan Ram
Mr. Mandhare Siddhant Ganesh
Mr. Yadav Aryan Shashikant

Has successfully submitted their micro project report on “Develop a Program

on Loan Calculator’’during the academic year 2024-2025 in the partial
fulfilment towards the completion of micro project in S.Y. Computer
Engineering under MSBTE MUMBAI

Project Guide Head of Department

Prof.Khade P.A Prof. Khutwad S. S

 ACKNOWLEDGEMENT

I am personally indebted to a number of people who gave me their useful insights to

aid in my overall progress for this project. A complete acknowledgement would therefore be
encyclopedic. First of all, I would like to give my deepest gratitude to my parents for
permitting me to take up this course.

My heartfelt sense of gratitude goes to our respected Principal Prof. Khopade D. K.

for all his efforts and administration in educating us in his premiere institution. I take this
opportunity to also thank our Head of the Department, Prof. Khutwad S.S. for her
encouragement throughout the seminar.

I would like to express my sincere thanks and gratitude to my guide Prof. Khade
P.A for her commendable support and encouragement for the completion of Project with
perfection. I also convey my sincere thanks to Prof. Khutwad S.S for her invaluable
suggestions and for her technical support rendered during the course of my project.
I would like to thank all faculty members and staff of the Department of Computer
Engineering for their generous help in various ways for the guidance of this project.

STUDENT NAME ENROLLMENT NO SIGN

1.Pansare Sairaj Ganesh 23213160132

2.Pawar Chetan Ram 23213160134

3.Mandhare Sidddhant Ganesh 23213160131

4.Yadav Aryan Shashikant 23213160115

 ABSTRACT

The goal of this microproject is to develop a loan calculator application in C++. The calculator
will allow users to input loan details (such as loan amount, interest rate, and loan tenure) and
calculate monthly payments, total interest, and the amortization schedule.

Features:

1. Input Parameters:
o Loan amount: The principal amount borrowed.
o Annual interest rate: The interest rate charged annually.
o Loan tenure (in months or years): The duration of the loan.
2. Calculation:
o Monthly payment calculation using the formula for loan amortization.
o Total interest paid over the loan tenure.
o Generation of an amortization schedule showing monthly payments, interest, and
principal components.
3. User Interface:
o A simple command-line interface where users can input loan details.
o Clear display of calculated results.

Implementation:

1. Loan Amortization Formula:

o The monthly payment can be calculated using the following formula:
o monthly_payment = (loan_amount * monthly_interest_rate) / (1 - (1 +
monthly_interest_rate)^(-loan_tenure))

where monthly_interest_rate is the annual interest rate divided by 12, and loan_tenure is the loan
tenure in months.

2. Amortization Schedule:
o Generate a table showing each month’s payment, interest, principal, and
remaining balance.

Challenges:

 Handling edge cases (e.g., zero interest rate, negative loan amount).
 Ensuring accurate floating-point calculations.
 Validating user input.
 INTRODUCTION

In the realm of software development, practical applications often emerge from solving real-
world problems. Our microproject focuses on building a loan calculator using the C++
programming language. The purpose of this project is to create a user-friendly tool that assists
individuals in understanding their loan obligations, making informed financial decisions, and
visualizing the repayment process.
Project Overview
1. Objective:
o Our goal is to develop a loan calculator that allows users to input essential loan
parameters and receive accurate calculations related to their loans.
o Key features include calculating monthly payments, total interest paid, and
generating an amortization schedule.
2. Why a Loan Calculator?
o Loans are an integral part of personal finance, whether for purchasing a home,
financing education, or acquiring assets.
o Understanding loan terms, interest rates, and repayment schedules is crucial for
borrowers.
o A loan calculator simplifies complex calculations, empowering users to make
informed decisions.
3. Features of Our Loan Calculator:
o Input Parameters:
 Loan amount: The principal borrowed.
 Annual interest rate: The cost of borrowing expressed as a percentage.
 Loan tenure: The duration of the loan (in months or years).
o Calculation Capabilities:
 Monthly payment: Calculated using the loan amortization formula.
 Total interest paid over the loan tenure.
 Amortization schedule: A detailed breakdown of each payment, including
interest and principal components.
Implementation Approach
1. Loan Amortization Formula:
o We’ll employ the standard loan amortization formula to calculate monthly
payments.
o The formula considers the loan amount, interest rate, and tenure.
2. User Interface:
o Our application will feature a simple command-line interface.
o Users can input their loan details, and the calculator will provide immediate
results.
3. Challenges and Considerations:
o Handling edge cases (e.g., zero interest rate, negative loan amount).
o Ensuring accurate floating-point calculations.
o Validating user input to prevent erroneous data.
 SOURCE CODE

#include <iostream.h>
#include<conio.h>

int main() {
double loan_amount, interest_rate, number_of_years, total_amount, monthly_amount;
clrscr();

cout << "Enter the loan amount: ";

cin >> loan_amount;
cout << endl;

cout << "Enter the interest rate: ";

cin >> interest_rate;
cout << endl;

cout << "Enter the number of years: ";

cin >> number_of_years;
cout << endl;

total_amount = (number_of_years * loan_amount) + (number_of_years *

loan_amount * (interest_rate / 100.00));
monthly_amount = total_amount / (number_of_years * 12);

cout << "Total amount to be paid: " << total_amount << endl;
cout << "Total interest: " << total_amount - (number_of_years * loan_amount) <<
endl;
cout << "Monthly amount to be paid: " << monthly_amount << endl;

return 0;
}
OUTPUT
 CONCLUSION
Creating a loan calculator in C++ is a great way to practice programming skills and understand
financial concepts. You can build a simple loan amortization calculator that takes inputs like
loan amount, interest rate, and loan term, and then calculates monthly payments and generates an
amortization schedule. Here’s a step-by-step guide on how to create one:
 Input Parameters:
o Loan amount (principal)
o Annual interest rate (as a decimal)
o Loan term (in months or years)
 Calculations:
o Convert the annual interest rate to a monthly interest rate.
o Calculate the monthly payment using the formula for loan amortization: [ \
text{Monthly Payment} = \frac{{\text{Loan Amount} \times \text{Monthly
Interest Rate}}}{{1 - (1 + \text{Monthly Interest Rate})^{-\text{Loan
Term}}}} ]
o Generate an amortization schedule that shows the breakdown of each monthly
payment into principal and interest.
 Coding Steps:
1. Accept input values from the user.
2. Calculate the monthly payment.
3. Generate the amortization schedule.
4. Display the results.
 REFERENCES

Certainly! While I don’t have direct access to specific project reports, I can guide you on where
to find relevant information and provide some resources that might be helpful. Remember that
creating your own project report based on your implementation is a valuable learning
experience!
1. Existing Project Report:
o There’s a project report titled “Scientific Calculator” submitted by a student
named Murali Krishna. It covers the development of a scientific calculator.
Although it’s not specifically about a loan calculator, you might find some useful
insights related to programming and project documentation. You can access this
report on Academia.edu1.
2. Creating Your Own Loan Calculator in C++: If you’re interested in building your
own loan calculator microproject, here are some steps and resources to get you started:
o Step-by-Step Guide:
 I recommend following a step-by-step guide to create a loan amortization
calculator in C++. Such a calculator takes inputs like loan amount, interest
rate, and loan term, and then calculates monthly payments and generates
an amortization schedule. You’ll learn about user input, mathematical
calculations, and displaying results.
 Here’s a guide that walks you through the process: Step-by-Step Guide to
Creating a Loan Amortization Calculator in C++2.
o Scientific Calculator Implementation:
 If you’re interested in a more complex project, consider building a
scientific calculator in C++. While it’s not directly related to loans, it will
enhance your programming skills and understanding of mathematical
operations.
 Here’s an article on how to implement a scientific calculator in C++: How
To Implement a Scientific Calculator in C++3.
Remember to adapt these resources to your specific requirements and customize your project
report accordingly. Good luck with your microproject, and feel free to ask if you need further
assistance!