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Share Purchase Loan Calculator

This program calculates the cost of borrowing funds to buy shares. The program assumes a 12 month payback. It will calculate the monthly payment based on the amount borrowed. It also assumes that any dividends from the share purchase will be applied towards the principal.

The calculation result will open a new web page tab. In this way the user can run several scenarios without losing the data pages for comparison.

Number of Shares Purchased
Cost of Each Share (do not include the $ sign)
Annual Share Dividend Yield (do not include the % sign)
Amount Borrowed (do not include the $ sign)
Loan Annual Interest Percentage (do not include the % sign)

Dividends are declared quarterly but only available for cash one month later, meaning that a dividend declared at the end of month 3 will only be available to be applied to the principal at month 5. By applying the dividend to the principal during the loan payback period, reduces the interest cost of the loan.

In some cases the interest can be deducted on income taxes as an "investment expense".