Enter Portfolio Loan Details
Example Data Table
| Scenario | Portfolio Value | Advance Rate | Requested Loan | Approved Loan | Rate | Term |
|---|---|---|---|---|---|---|
| Conservative | $300,000 | 40% | $100,000 | $100,000 | 7.50% | 48 months |
| Balanced | $500,000 | 50% | $200,000 | $200,000 | 8.50% | 60 months |
| Aggressive | $800,000 | 60% | $550,000 | $480,000 | 9.25% | 84 months |
Formula Used
Maximum loan: Portfolio Value × Advance Rate.
Approved loan: Lower of Requested Loan and Maximum Loan.
Current LTV: Approved Loan ÷ Portfolio Value × 100.
Monthly rate: Annual Interest Rate ÷ 12.
Amortized payment: P × r × (1 + r)n ÷ ((1 + r)n − 1).
Interest-only payment: Approved Loan × Monthly Rate.
Monthly servicing fee: Approved Loan × Annual Servicing Fee ÷ 12.
Net proceeds: Approved Loan − Origination Fee.
Stressed value: Portfolio Value × (1 − Stress Drop).
Stressed LTV: Approved Loan ÷ Stressed Value × 100.
Margin shortfall: Approved Loan − Stressed Value × Margin Call LTV.
How To Use This Calculator
Enter the total market value of the pledged portfolio.
Add the loan amount you want to borrow.
Enter the lender advance rate allowed for your assets.
Add the annual interest rate and loan term.
Select amortized payments or interest-only payments.
Enter origination fees, servicing fees, cash reserve, and stress assumptions.
Press the calculate button to view the result above the form.
Use the CSV or PDF buttons to save the calculation.
Portfolio Loan Planning Guide
What A Portfolio Loan Measures
A portfolio loan uses investment assets as collateral. The calculator estimates how much credit may be supported by a pledged portfolio. It starts with the market value of eligible assets. Then it applies an advance rate. This rate shows the lender’s lending percentage against the portfolio. A diversified account may receive a higher rate. Volatile holdings may receive a lower rate.
Why Loan To Value Matters
Loan to value is a key risk measure. It compares the loan balance with collateral value. A lower ratio gives more cushion. A higher ratio creates greater margin pressure. If markets fall, the same loan can become riskier. This calculator shows both current and stressed LTV. That makes the estimate more useful than a simple payment tool.
Understanding Payment Options
Two payment styles are included. The amortized option spreads principal and interest across the selected term. It gradually reduces the loan balance. The interest-only option estimates monthly interest and fees only. It keeps the principal balance outstanding. This can improve early cash flow. It can also increase refinance or repayment risk later.
Fees And Net Proceeds
Loan fees affect the actual cash received. Origination fees are deducted from the approved amount. Servicing fees are added to monthly cost. The calculator separates these items clearly. This helps compare lender offers. A lower interest rate may not always mean a cheaper loan. Fees can change the real cost meaningfully.
Using Stress Testing
The stress test applies a selected portfolio decline. It then recalculates the LTV. This helps show what may happen during a market drawdown. The margin call level provides another warning point. If stressed LTV reaches that level, more collateral or repayment may be required. The available cushion shows how much room remains.
Better Borrowing Decisions
Use the output as a planning estimate. Compare multiple advance rates, terms, and stress drops. Keep a cash reserve for payments and possible collateral calls. Review results with a qualified adviser before signing any loan agreement. Portfolio loans can be flexible. They also require careful monitoring and disciplined risk control.
FAQs
What is a portfolio loan?
A portfolio loan is borrowing secured by investment assets. Stocks, bonds, funds, or managed accounts may support the loan. The exact eligibility depends on the lender and the account type.
What does advance rate mean?
The advance rate is the percentage of portfolio value a lender may allow as borrowing capacity. For example, a 50% rate on a $400,000 portfolio gives a $200,000 maximum loan.
What is loan to value?
Loan to value compares the loan balance with collateral value. A lower LTV usually means more safety. A higher LTV may increase the chance of margin calls during market declines.
Does this calculator include fees?
Yes. It includes origination fees and annual servicing fees. Origination fees reduce net proceeds. Servicing fees are added to the estimated monthly payment.
What is a stressed LTV?
Stressed LTV estimates the loan ratio after a portfolio decline. It helps test how the loan may behave during a market downturn or asset price shock.
Can I compare amortized and interest-only loans?
Yes. Select the payment type in the form. Amortized payments reduce principal over time. Interest-only payments estimate interest and servicing costs without principal reduction.
Why is my approved loan lower than requested?
The calculator limits the approved loan to the portfolio value multiplied by the advance rate. If your requested amount is higher, the result uses the allowed maximum.
Is this result a lender approval?
No. This is an estimate for planning. Real approval depends on lender rules, asset eligibility, credit review, account restrictions, and current market conditions.