financecalculator2025.contribution
Functions
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Calculates the contribution required per period to achieve a specified future value |
Module Contents
- financecalculator2025.contribution.calculate_contribution(principal, future_value, annual_rate, n_periods)[source]
Calculates the contribution required per period to achieve a specified future value or pay off a loan, considering the possibility of depositing or withdrawing funds.
- Parameters:
principal (float) – The initial loan amount or investment (present value). For loans, this should be a negative value (e.g., -1000 for a loan of 1000).
future_value (float) – The target future value (amount remaining after n_periods). For loans, this is usually 0.
annual_rate (float) – Annual interest rate (as a percentage, e.g., 5 for 5%).
n_periods (int) – Total number of periods (e.g., months or years). Must be a positive integer.
- Returns:
The payment amount per period required to reach the specified future value or pay off the loan. A positive value represents an inflow (e.g., making deposits), while a negative value represents an outflow (e.g., withdrawals or loan repayments).
- Return type:
float
- Raises:
ValueError – If any input is invalid, such as non-numeric types or invalid ranges.
Warning
- UserWarning
Warnings for potentially unusual inputs.
Examples
>>> calculate_contribution(principal=0, future_value=10000, annual_rate=5, n_periods=120)