Repayment Calculator: An Instrument for Calculation of Repayment Loans

2007-03-08 10:33:40

( Financial )



Using a loan repayment calculator to compute the monthly installment payments of your loan saves you time and effort. It helps one learn about how much interest is charged, and how it affects the amount that you need to pay back.
Loan repayment calculators are also known as a debt repayment calculator and a mortgage repayment calculator. It can be helpful in the computation of monthly repayments in standard student loan repayment programs.

How does a standard loan repayment calculator work?

In a simple repayment calculator program, you enter the original amount of your loan, the percentage per annum and how many years you promised to pay it back. The amount of your monthly repayment is then given to you instantly, within a span of a few minutes.

Please note that the calculator assumes that the interest rate remains fixed throughout the loan period; it also assumes that you will pay your loan in equal monthly installments.

The loan calculator provides you with only an approximate result, as the amount will depend on the variables that you enter. Interest rates change every so often, and therefore you should only use the calculator as a guide to provide you a rough estimate of your monthly payments.

Using the loan calculator for graduated repayment and income contingent repayment plans is not advisable, as it will give you inaccurate results. There are graduated calculators that can be used to help compute monthly repayment amounts for these types of loans.

Other types of loan calculators go ahead and assist you in computing your loan amount under different repayment schemes; another calculates whether you can pay back your loan within your monthly earnings.

There are vast resources on the Internet that provide you assistance with repayment calculators. All you need to do is to make use of a search engine to look one. Once you find a website that you feel comfortable with, you can then work on the calculation of your monthly repayments from the website itself.

If you have a number of loans you need to repay, it is best to seek advise on the consolidation of loans; you then need to use a consolidation calculator to compute your monthly repayment amount.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.