Many people take out loans when trying to make a big purchase like a car, house or property or when about to start up a business. These loans are spread out in plans that require the individual to pay a certain amount on a monthly basis along with the interest amount as well. Individuals, who seek out loans, need to think a lot about how they will be paying off the loan since the interest amount added makes the whole amount higher than the original price.
What is a loan calculator?
A loan calculator is an effective and handy tool that enables the user to determine to monthly payments he is required to make each month in order to pay off the loan. By efficient use of loan calculator, the borrow gets to know about the total amount he is obligated to pay back. The loan calculator also helps the user to determine the interest figure he will have to pay.
What is the basic purpose of using the loan calculator?
A loan is a burden that everyone wants to get rid of. Some people are given the flexibility to pay the loan in multiple small or big installments. The repayment of the loan in the form of an installment is also accompanied by the interest rate.
The borrower should be aware of how much interest he is paying along with repayment of the borrowed money. Moreover, people who are interested in knowing how long it will take them to pay off the borrowed money with their chosen interest rate and installment amount can also use a loan calculator.
To calculate how much money one has to pay back on a monthly or yearly basis, one can make use of the Loan Calculator. This calculator helps an individual calculate the monthly or yearly amount to be paid.
This calculator can be found online on various websites or you can download the application on your cell phone or tablet as well. All it requires you to fill in the loan amount along with the years or the months that loan is expected to be paid off in, the interest rate (if you are unsure about the interest rate you can always check the get today’s interest rate option – It may differ country to country) and the date on which the loan started off. It will calculate how much money you need to pay monthly along with a chart of how much amount is the principal amount and how much is the interest paid.
Using a loan calculator can help out individuals to decide whether or not a specific loan package works for them or if the whole loan is affordable for them.
What are the advantages of using the loan calculator?
People who want to return the borrowed money at their earliest convenience should make use of loan calculator due to plenty of benefits it comes with. Here are a few very common benefits of using the loan calculator.
- The loan calculator gives a clear idea about the payments the borrower will have to make so as to pay off the debt. With this, the person can determine whether to borrow the money or not. N this way, the person saves himself from the strict loan repayment installments.
- The loan calculator gives very accurate results due to which, the user can easily know about the amount of difference lies between the actual amount and the estimated amount.
- The loan calculator is also helpful for students or retired people who are given special discounts.
The loan calculator template provides the formulas that calculate everything related to loan very quickly. This saves the time of the user and also saves him from the hassle of calculating everything manually.
Simple Loan Calculator
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Loan Calculator Template
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Loan Calculator with Extra Payment
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