dev1/src/utils/FinancialProjectionService.js

319 lines
11 KiB
JavaScript

import moment from 'moment';
// Example fields in userProfile that matter here:
// - academicCalendar: 'semester' | 'quarter' | 'trimester' | 'monthly'
// - annualFinancialAid: amount of scholarships/grants per year
// - inCollege, loanDeferralUntilGraduation, graduationDate, etc.
//
// Additional logic now for lumps instead of monthly tuition payments.
export function simulateFinancialProjection(userProfile) {
const {
// Income & expenses
currentSalary = 0,
monthlyExpenses = 0,
monthlyDebtPayments = 0,
partTimeIncome = 0,
extraPayment = 0,
// Loan info
studentLoanAmount = 0,
interestRate = 5, // %
loanTerm = 10, // years
loanDeferralUntilGraduation = false,
// College & tuition
inCollege = false,
programType,
hoursCompleted = 0,
creditHoursPerYear,
calculatedTuition, // e.g. annual tuition
gradDate, // known graduation date, or null
startDate, // when sim starts
academicCalendar = 'monthly', // new
annualFinancialAid = 0,
// Salary after graduation
expectedSalary = 0,
// Savings
emergencySavings = 0,
retirementSavings = 0,
// Monthly contributions
monthlyRetirementContribution = 0,
monthlyEmergencyContribution = 0,
// Surplus allocation
surplusEmergencyAllocation = 50,
surplusRetirementAllocation = 50,
// Potential override
programLength
} = userProfile;
// 1. Calculate standard monthly loan payment
const monthlyLoanPayment = calculateLoanPayment(studentLoanAmount, interestRate, loanTerm);
// 2. Determine how many credit hours remain
let requiredCreditHours = 120;
switch (programType) {
case "Associate's Degree":
requiredCreditHours = 60;
break;
case "Bachelor's Degree":
requiredCreditHours = 120;
break;
case "Master's Degree":
requiredCreditHours = 30;
break;
case "Doctoral Degree":
requiredCreditHours = 60;
break;
default:
requiredCreditHours = 120;
}
const remainingCreditHours = Math.max(0, requiredCreditHours - hoursCompleted);
const dynamicProgramLength = Math.ceil(remainingCreditHours / creditHoursPerYear);
const finalProgramLength = programLength || dynamicProgramLength;
// 3. Net annual tuition after financial aid
const netAnnualTuition = Math.max(0, calculatedTuition - annualFinancialAid);
const totalTuitionCost = netAnnualTuition * finalProgramLength;
// 4. Setup lumps per year based on academicCalendar
let lumpsPerYear = 12; // monthly fallback
let lumpsSchedule = []; // which months from start of academic year
// We'll store an array of month offsets in a single year (0-based)
// for semester, quarter, trimester
switch (academicCalendar) {
case 'semester':
lumpsPerYear = 2;
lumpsSchedule = [0, 6]; // months 0 & 6 from start of each academic year
break;
case 'quarter':
lumpsPerYear = 4;
lumpsSchedule = [0, 3, 6, 9];
break;
case 'trimester':
lumpsPerYear = 3;
lumpsSchedule = [0, 4, 8];
break;
case 'monthly':
default:
lumpsPerYear = 12;
lumpsSchedule = [...Array(12).keys()]; // 0..11
break;
}
// Each academic year is 12 months, for finalProgramLength years => totalAcademicMonths
const totalAcademicMonths = finalProgramLength * 12;
// Each lump sum = totalTuitionCost / (lumpsPerYear * finalProgramLength)
const lumpAmount = totalTuitionCost / (lumpsPerYear * finalProgramLength);
// 5. We'll loop for up to 20 years
const maxMonths = 240;
let date = startDate ? new Date(startDate) : new Date();
let loanBalance = studentLoanAmount;
let loanPaidOffMonth = null;
let currentEmergencySavings = emergencySavings;
let currentRetirementSavings = retirementSavings;
let projectionData = [];
// Convert gradDate to actual if present
const graduationDate = gradDate ? new Date(gradDate) : null;
for (let month = 0; month < maxMonths; month++) {
date.setMonth(date.getMonth() + 1);
// If loan is fully paid, record if not done already
if (loanBalance <= 0 && !loanPaidOffMonth) {
loanPaidOffMonth = `${date.getFullYear()}-${String(date.getMonth() + 1).padStart(2, '0')}`;
}
// Are we still in college? We either trust gradDate or approximate finalProgramLength
let stillInCollege = false;
if (inCollege) {
if (graduationDate) {
stillInCollege = date < graduationDate;
} else {
// approximate by how many months since start
const simStart = startDate ? new Date(startDate) : new Date();
const elapsedMonths =
(date.getFullYear() - simStart.getFullYear()) * 12 +
(date.getMonth() - simStart.getMonth());
stillInCollege = (elapsedMonths < totalAcademicMonths);
}
}
// 6. If we pay lumps: check if this is a "lump" month within the user's academic year
// We'll find how many academic years have passed since they started
let tuitionCostThisMonth = 0;
if (stillInCollege && lumpsPerYear > 0) {
const simStart = startDate ? new Date(startDate) : new Date();
const elapsedMonths =
(date.getFullYear() - simStart.getFullYear()) * 12 +
(date.getMonth() - simStart.getMonth());
// Which academic year index are we in?
const academicYearIndex = Math.floor(elapsedMonths / 12);
// Within that year, which month are we in? (0..11)
const monthInYear = elapsedMonths % 12;
// If we find monthInYear in lumpsSchedule, then lumps are due
if (lumpsSchedule.includes(monthInYear) && academicYearIndex < finalProgramLength) {
tuitionCostThisMonth = lumpAmount;
}
}
// 7. Decide if user defers or pays out of pocket
// If deferring, add lumps to loan
if (stillInCollege && loanDeferralUntilGraduation) {
// Instead of user paying out of pocket, add to loan
if (tuitionCostThisMonth > 0) {
loanBalance += tuitionCostThisMonth;
tuitionCostThisMonth = 0; // paid by the loan
}
}
// 8. monthly income
let monthlyIncome = 0;
if (!inCollege || !stillInCollege) {
// user has graduated or never in college
monthlyIncome = (expectedSalary > 0 ? expectedSalary : currentSalary) / 12;
} else {
// in college => currentSalary + partTimeIncome
monthlyIncome = (currentSalary / 12) + (partTimeIncome / 12);
}
// 9. mandatory expenses (excluding student loan if deferring)
let thisMonthLoanPayment = 0;
let totalMonthlyExpenses = monthlyExpenses + monthlyDebtPayments + tuitionCostThisMonth;
if (stillInCollege && loanDeferralUntilGraduation) {
// Accrue interest only
const interestForMonth = loanBalance * (interestRate / 100 / 12);
loanBalance += interestForMonth;
} else {
// Normal loan repayment if loan > 0
if (loanBalance > 0) {
const interestForMonth = loanBalance * (interestRate / 100 / 12);
const principalForMonth = Math.min(
loanBalance,
(monthlyLoanPayment + extraPayment) - interestForMonth
);
loanBalance -= principalForMonth;
loanBalance = Math.max(loanBalance, 0);
thisMonthLoanPayment = monthlyLoanPayment + extraPayment;
totalMonthlyExpenses += thisMonthLoanPayment;
}
}
// 10. leftover after mandatory expenses
let leftover = monthlyIncome - totalMonthlyExpenses;
if (leftover < 0) {
leftover = 0; // can't do partial negative leftover; they simply can't afford it
}
// Baseline monthly contributions
const baselineContributions = monthlyRetirementContribution + monthlyEmergencyContribution;
let effectiveRetirementContribution = 0;
let effectiveEmergencyContribution = 0;
if (leftover >= baselineContributions) {
effectiveRetirementContribution = monthlyRetirementContribution;
effectiveEmergencyContribution = monthlyEmergencyContribution;
leftover -= baselineContributions;
} else {
// not enough leftover
// for real life, we typically set them to 0 if we can't afford them
// or reduce proportionally. We'll do the simpler approach: set them to 0
// as requested.
effectiveRetirementContribution = 0;
effectiveEmergencyContribution = 0;
}
// 11. Now see if leftover is negative => shortfall from mandatory expenses
// Actually we zeroed leftover if it was negative. So let's check if the user
// truly can't afford mandatoryExpenses
const totalMandatoryPlusContrib = monthlyIncome - leftover;
const totalWantedContributions = effectiveRetirementContribution + effectiveEmergencyContribution;
const actualExpensesPaid = totalMonthlyExpenses + totalWantedContributions;
let shortfall = actualExpensesPaid - monthlyIncome; // if positive => can't pay
if (shortfall > 0) {
// We can reduce from emergency savings
const canCover = Math.min(shortfall, currentEmergencySavings);
currentEmergencySavings -= canCover;
shortfall -= canCover;
if (shortfall > 0) {
// user is effectively bankrupt
// we can break out or keep going to show negative net worth
// For demonstration, let's break
break;
}
}
// 12. If leftover > 0 after baseline contributions, allocate surplus
// (we do it after we've handled shortfall)
const newLeftover = leftover; // leftover not used for baseline
let surplusUsed = 0;
if (newLeftover > 0) {
// Allocate by percent
const totalPct = surplusEmergencyAllocation + surplusRetirementAllocation;
const emergencyPortion = newLeftover * (surplusEmergencyAllocation / totalPct);
const retirementPortion = newLeftover * (surplusRetirementAllocation / totalPct);
currentEmergencySavings += emergencyPortion;
currentRetirementSavings += retirementPortion;
surplusUsed = newLeftover;
}
// 13. netSavings is monthlyIncome - actual expenses - all contributions
// But we must recalc actual final expenses paid
const finalExpensesPaid = totalMonthlyExpenses + (effectiveRetirementContribution + effectiveEmergencyContribution);
const netSavings = monthlyIncome - finalExpensesPaid;
projectionData.push({
month: `${date.getFullYear()}-${String(date.getMonth() + 1).padStart(2, '0')}`,
monthlyIncome,
totalExpenses: finalExpensesPaid,
effectiveRetirementContribution,
effectiveEmergencyContribution,
netSavings,
emergencySavings: currentEmergencySavings,
retirementSavings: currentRetirementSavings,
loanBalance: Math.round(loanBalance * 100) / 100,
loanPaymentThisMonth: thisMonthLoanPayment
});
}
// Return final
return {
projectionData,
loanPaidOffMonth,
finalEmergencySavings: currentEmergencySavings,
finalRetirementSavings: currentRetirementSavings,
finalLoanBalance: Math.round(loanBalance * 100) / 100
};
}
/**
* Calculate the standard monthly loan payment for principal, annualRate (%) and term (years)
*/
function calculateLoanPayment(principal, annualRate, years) {
if (principal <= 0) return 0;
const monthlyRate = annualRate / 100 / 12;
const numPayments = years * 12;
if (monthlyRate === 0) {
// no interest
return principal / numPayments;
}
return (
(principal * monthlyRate) /
(1 - Math.pow(1 + monthlyRate, -numPayments))
);
}