Personal Loan Calculator

When you need a loan for something, shopping the variety of options available to you is an important step. You know you want the best rates available and a loan that fits your family’s budget, but you may not know exactly what terms you need. A personal loan calculator is a tool to help you with your decision. As with any computer-based program, your final calculations are only as good as the data you input, so knowing the difference between online calculators is crucial.

Payment Calculator

The most common personal loan calculator available online is used to calculate loan payments. Before you apply for any loan, you should make a habit of performing this calculation. If you don’t, you run the risk of getting a loan with monthly payments you can’t afford.

For example, if you want a personal loan to purchase a car, you must know how much car you can afford. Input a few price points with a variety of interest rates and note how each change affects your payment. Spending $15,000 on a car may not sound unreasonable until you run the payments at a high interest rate of 18 percent. Use findings to shape the nature of your car search to save valuable time.

Interest Rate Calculator

A less common personal loan calculator is for finding interest rates. Use this calculator to determine the highest interest rate you can afford to pay for a loan. Simply input the amount you want to finance, the highest payment you can afford and the number of months to repay the loan. Keep the percentage it provides in mind when shopping for personal loan rates. If a lender cannot offer a rate under your maximum, don’t apply.

Payoff Calculator

The payoff calculator is the most useful of the personal loan calculators for anyone trying to eliminate their debt. This one typically has two different functions. You can enter the data on your current balances, rates and payments to find out how long it will take you to be debt free. Another function of this calculator is handy if you have a debt free timeline. Input your balances, rates and payoff deadline to determine the required monthly payments to meet your goal.

No matter what kind of loan you desire or how many debts you have to repay, using a personal loan calculator can help you make more informed financial decisions.

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