Software Requirements Specification (SRS) for Early Loan Payoff Calculator

Introduction

Purpose:

The purpose of this document is to define the requirements for the development of an Early Loan Payoff Calculator. This web-based application aims to allow users to see how making additional payments can impact the early payoff of a loan.

Scope:

The Early Loan Payoff Calculator will provide users with an interface to input details such as loan amount, interest rate, current monthly payment, and additional payments. The application will calculate and display the impact of additional payments on the loan’s early payoff.

System Overview

System Description:

The system will be a client-server application. Users will access the Early Loan Payoff Calculator through a web browser. The server will handle the logic for early payoff calculations.

System Architecture:

The application will follow a three-tier architecture: presentation layer (client-side browser), application layer (server-side processing), and data layer (storage and retrieval of data).

Functional Requirements

Use Cases:

Calculate Early Loan Payoff:

• Users can input details such as loan amount, interest rate, current monthly payment, and additional payments.
• The system will calculate and display the impact of additional payments on the early payoff of the loan.

Functional Requirements:

Input:

• The system shall allow users to enter the following details:
  • Loan Amount (Decimal)
  • Interest Rate (Decimal)
  • Current Monthly Payment (Decimal)
  • Additional Payments (Decimal)

Calculation:

• The system shall calculate the remaining loan balance and the estimated time for early payoff based on user-input details.

Output:

• The system shall display the impact of additional payments on the early payoff, including the remaining balance and estimated time for payoff.

External Interface Requirements

 User Interfaces:

• The user interface shall consist of input fields for loan amount, interest rate, current monthly payment, and additional payments, along with a “Calculate” button.
• The calculated impact on early loan payoff shall be displayed prominently.

Hardware Interfaces:

The system should be compatible with standard computing hardware.

Software Interfaces:

• The application will be developed using HTML, CSS, and JavaScript for the frontend.
• The backend can be implemented using a server-side framework (e.g., Node.js, Django) with a database for data storage.

Communication Interfaces:

The application will communicate with the server for early payoff calculations.

Performance Requirements

Response Time:

The system should provide a response time of under 3 seconds for a typical user input.

Throughput:

The application should handle at least 50 simultaneous users.

System Constraints

Regulatory Requirements:

The application should comply with relevant financial regulations.

 Hardware Limitations:

The system should be compatible with devices supporting standard web browsers.

Security Requirements

 Authentication:

• User authentication may be implemented for personalized features.

Data Protection:

• User data, if stored, should be securely protected.

Quality Attributes

 Reliability:

The application should provide accurate early loan payoff calculations based on the entered details.

 Maintainability:

The code should be well-documented for ease of maintenance.

 Usability:

The user interface should be intuitive, requiring minimal guidance.

Testing Requirements

Test Cases:

Test cases should cover various scenarios with different loan amounts, interest rates, current monthly payments, and additional payments to ensure accurate early loan payoff calculations.

Test Case 1:

• Inputs: Loan Amount = 20,000 INR, Interest Rate = 5%, Current Monthly Payment = 500 INR, Additional Payments = 100 INR.
• Expected Output: Remaining Balance ≈ 15,000 INR, Estimated Time for Payoff ≈ 2 months.

Test Case 2:

• Inputs: Loan Amount = $10,000, Interest Rate = 3%, Current Monthly Payment = $300, Additional Payments = $50.
• Expected Output: Remaining Balance ≈ $7,500, Estimated Time for Payoff ≈ 3 months.

Test Case 3:

• Inputs: Loan Amount = 15,000 INR, Interest Rate = 6%, Current Monthly Payment = 600 INR, Additional Payments = 200 INR.
• Expected Output: Remaining Balance ≈ 10,000 INR, Estimated Time for Payoff ≈ 4 months.

 Acceptance Criteria:

The application is considered successful if it produces correct early loan payoff calculations based on the provided details.

Project Timeline

 Milestones:

Design, Development, Testing, Deployment.

 Development Phases:

Frontend development, Backend development, Testing, Deployment.

Glossary

• None

Database Structure

 Tables:

• EarlyLoanPayoff_Calculator_Records:
  • RecordID (Primary Key, Auto-increment)
  • UserID (Foreign Key, if user accounts are implemented)
  • LoanAmount (Decimal)
  • InterestRate (Decimal)
  • CurrentMonthlyPayment (Decimal)
  • AdditionalPayments (Decimal)
  • RemainingBalance (Decimal)
  • EstimatedTimeForPayoff (Integer)
  • CalculationDate (DateTime)

Conclusion

This SRS document outlines the requirements for the Early Loan Payoff Calculator. It serves as a guide for the development team and ensures that the application meets the specified criteria. Review and approval by relevant stakeholders are essential before proceeding with the development phase.