Calculate Profit
hello everyone, i am new student . i need help on math formula for determine the amount of profit . when p.i.t.i. calculate the principle, interest, taxes and insurance with profit add.
are there formula for this. do i first calculate the principle & interest and than div. the new taxes & insurance by
12mo. and my profit to come out with the new p.i.t.i.
Correct. Calculate P&I and then 1/12 of insurance and taxes
To calculate PITI, you calculate Principal and interest payments, then add the annual insurance premiums, and taxes and divide by 12. Take that number and add it to the Principal and interest total, and you have PITI. The whole profit thing you're asking is a bit confusing.
Generally, you have a purchase price and a sale price. The difference between the two represents your profit or loss.
If Sub2 purchase and CFD for sale. take the PITI from the existing financing and subtract it from the PITI on the new financing, less any addetional expenses, and you have your profit.
Jeff