Are you planning to take out a loan, but you are well aware of how serious this decision is for your financial security? Are you wondering how much more or less a loan installment for a certain amount can be? Do you want to know what your credit standing looks like? Check what the loan calculator can be useful for!
What is a loan calculator?
What can the loan calculator do for you? The loan calculator is a kind of “loan converter”, an instrument designed to make estimated calculations regarding the amount of loan installments. It should not be forgotten, however, that the data presented by the calculator are for reference only and estimated, and all information about a specific loan should be asked at the bank where we intend to take it.
Loan installment calculator: check what the approximate installment amount can look like!
The online loan calculator, which will allow us to calculate the installments approximately, is a simple loan simulator. What data must be provided to make the relevant calculations? It is an individual matter, depending on the complexity of the tool and the type of calculator. In the network you will find different types of calculators: cash, mortgage, car, consolidation loan calculators etc.
Depending on the type of loan and the calculator, however, you usually need to complete information such as, for example, the amount of the loan. The loan calculator often requires you to specify the interest rate and choose the type of installment: whether they will be equal or decreasing installments. The credit meter in the form of a calculator may also need data on the possible commission and insurance as well as the loan period.
The loan repayment calculator, which will show us the possible approximate amount of installments, may be helpful if you are considering making a similar commitment, but at the same time you should not take the information presented in it as a certainty. With its help, only an estimated loan calculation is possible.
Some calculators allow you to prepare a statement, which is a hypothetical simulation of loan installments, based on values entered by the user, presenting what the capital and interest part of individual installments will look like. Similar loan repayment simulation should, however, be treated with adequate reserve. What’s more, this type of loan installment simulator is a simple to use calculator that will allow you to calculate interest on a loan, of course, in an estimated manner.
The loan installments converter is often also provided by banks. When choosing a bank loan calculator, keep in mind the type of loan you want to calculate for. What does it mean? If we want to make sample calculations for a cash loan, let’s use a calculator designed for this type of loan. It happens that a detailed loan calculator operates in the company of credit comparison websites.
To sum up: a loan calculator with a debt repayment schedule can be an interesting tool if we want to get approximate data on potential installments. Nevertheless, the online loan calculator can only provide rough estimates. Which loan calculator should you choose? It depends on what calculations you care about!
Credit calculator: what credit can I get?
The loan calculator, which will also act as a loan interest calculator, is just one of the possibilities offered by the Internet, although a similar loan converter can be helpful – we already know from the earlier part of the article. Now let’s look at another type of online calculator, such as creditworthiness calculators. You ask yourself: what loan, in what amount can I get? This type of calculator can be a source of useful information, but like calculators that perform credit calculations, they must be treated with distance and awareness that they are only estimates.
The calculator, which roughly answers the question: what credit can I count on, also requires the user to provide specific data. What? The calculation of creditworthiness, using a tool such as a dedicated calculator, often means the need to fill in the headings regarding, among others:
- earned income
- amount of monthly installments of loans repaid, etc.
- household maintenance costs
A calculator that allows you to check your creditworthiness can satisfy our curiosity if we are just trying to take such a serious step, which is taking a loan and we have no idea what amount of information we can expect. You can find creditworthiness calculators on the web, for example in the context of a mortgage.