Nowadays, a simple loan calculator can be used online. It is now accessible to everyone who has internet connection. It is used by borrowers as an apparatus wherein they could check how much a loan would cost them. On the other hand, the simple loan calculator is also used by the lenders to see how much they will make with a certain loan.
A loan a like a debt only with monthly payments. It is an agreement between the borrower and the lender wherein the lender gives an amount, or the principal, to the borrower. The borrower will pay back the entire borrowed amount in a later date. However, the amount to be paid will have additional charges as loan amount accrues depending on the interest rate given by the lender.
What is a Simple Loan Calculator?
A simple loan calculator is used to calculate the payment to be made in a specific loan with an unchangeable period of time and with a constant interest. Types of loan wherein it can be used are the following: vehicle loan, mortgage, and any other loan that has a constant interest rate. So before using the simple loan calculator, you must first know what type of loan you will enroll yourself into, as other types of loan have different calculators to be used. An example would be a house loan wherein it is more of a mutual deal than a formal one and time period and interest may change depending on the borrower and the lenders agreement.
How to use a Simple Loan Calculator?
A simple loan calculator would need inputs from the user so that it will be able to compute for the loan payment. The first input needed is the principal amount or your total loan amount without any deductions from previous payments that have been made. The second input needed is the constant interest rate in percentage form. Lastly, the simple loan calculator needs the time period in years or months, depending on what type of simple loan calculator the user have. Remember that both the interest rate and the time period are fixed values.
Pros and Cons
Now, the simple loan calculator will show calculations of how much the borrower would need to pay every month for the given amount of time. Please be advised that the simple loan calculator is only used as a prediction tool. Although the simple loan calculator is not that precise, it can avoid additional service charges applied to your loan. It is also easy to access. A simple loan calculator is also user-friendly as it only needs three inputs from the user. However, one must still heed advice from professionals for accurate and detailed calculations.
A loan a like a debt only with monthly payments. It is an agreement between the borrower and the lender wherein the lender gives an amount, or the principal, to the borrower. The borrower will pay back the entire borrowed amount in a later date. However, the amount to be paid will have additional charges as loan amount accrues depending on the interest rate given by the lender.
What is a Simple Loan Calculator?
A simple loan calculator is used to calculate the payment to be made in a specific loan with an unchangeable period of time and with a constant interest. Types of loan wherein it can be used are the following: vehicle loan, mortgage, and any other loan that has a constant interest rate. So before using the simple loan calculator, you must first know what type of loan you will enroll yourself into, as other types of loan have different calculators to be used. An example would be a house loan wherein it is more of a mutual deal than a formal one and time period and interest may change depending on the borrower and the lenders agreement.
How to use a Simple Loan Calculator?
A simple loan calculator would need inputs from the user so that it will be able to compute for the loan payment. The first input needed is the principal amount or your total loan amount without any deductions from previous payments that have been made. The second input needed is the constant interest rate in percentage form. Lastly, the simple loan calculator needs the time period in years or months, depending on what type of simple loan calculator the user have. Remember that both the interest rate and the time period are fixed values.
Pros and Cons
Now, the simple loan calculator will show calculations of how much the borrower would need to pay every month for the given amount of time. Please be advised that the simple loan calculator is only used as a prediction tool. Although the simple loan calculator is not that precise, it can avoid additional service charges applied to your loan. It is also easy to access. A simple loan calculator is also user-friendly as it only needs three inputs from the user. However, one must still heed advice from professionals for accurate and detailed calculations.