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An online calculator is a tool that conducts calculations automatically. Depending on the available functions and type of calculator, you can estimate different details of your loan and solve various problems.
Online calculators are most helpful when you need to conduct complicated calculations manually, and there is a high possibility of making a mistake.
You can find almost every type of calculator online. Depending on the purpose of your calculations, you can opt for scientific, financial, simple, or percentage calculators. Loan calculators are used for estimating the loan metrics. They also come in several types. Mortgage, student loan, auto loan, and personal loan calculators are the most common of them.
A scientific calculator is an online calculator you can use for solving scientific, engineering, or math problems. They are good for both personal and professional use. You can calculate not only sums, products, or quotients but also decimals, powers, and logarithms. It is good for trigonometric problems. Yet, you can use it to compare loans or find the percentage of the interest rates on your debt.
This calculator is similar to a scientific type. The major difference is that you use a financial calculator to solve financial problems like interest rates, pensions, loan payments, depreciating value, or time-even points. You can calculate the value of money or even assess the payments you should make on a particular debt.
Percentage calculator can help you to quickly estimate a simple percent of something, a change of percentage, or a difference between the percentages. It saves you time when it comes to finding out the percentage of your interest in a debt, or how much you will need to overpay on different options. However, to estimate the interest rate on your loan, you will need to use an interest rate calculator which comes in simple and compound types.
Loan calculators focus on assessing the payments and interests on debts depending on the loan details you fill into the appropriate fields. These are the general calculators for loans and don’t have specific fields for estimating loans like mortgages or car loans.
Mortgage calculator allows a borrower to provide the tool with the details like home’s value, DTI, taxes, down payment. It will help you learn how much you will pay back each month, and the total interest you will pay to the lender. Mortgage calculators can also offer you loan options based on the information you provided.
To calculate how much you will pay back on your student loan, you can use a student loan calculator. Again, you need to fill in your student loan details, and the calculator will conduct the calculations using formulas automatically. You can estimate if a particular student loan is affordable to you.
Car loan calculator is good for estimating your auto loan payments and interest. You can fill down payment, interest rate, loan amount, taxes, and the calculator will give you your monthly payments and interest. It can also help you track your payments and keep your payments on time if you share it on your page. You need to keep in mind that most of the car loans are secured, meaning the lender can repossess your car if you cannot meet the payments schedule.
Online calculator allows you to conduct calculations through the internet. You can avoid spending time on basic calculations. If you need to quickly assume the difference between numbers, find the sum, power, or square root, the calculator will definitely serve you the best. You still need to know the formulas to solve complicated problems, but the calculation will be done automatically. It allows you to avoid most of the mistakes in the calculating process.
If you want to compare debt amounts, find out the total percentage of your interest on the loan, or calculate how much of your debt is still left for you to pay back, you can still opt for this online calculator.
Assume you need to compare two loan options. Loan amount you want to take is $50,000. First option has a 4% interest rate compounding annually and two years of loan life. Second option offers a 5% interest rate compounding annually for four years.
You can find the monthly payments and the total interest you will need to pay back. Monthly payments = a / {[ (1+r)^n] - 1} / [r (1+r)^n)], where
a is the loan amount,
r is an interest rate divided by 12 monthly payments per year, and
n is the number of payments.
Divide the interest rate by 12: 0.04 / 12 = 0.003,
Calculate the first part: {[(1+0.003)^24] - 1} = 0.07453952,
Calculate the second part: [0.003 (1+0.003)^24)] = 0.00322361856,
Divide the first part of the formula by the second: 0.07453952 / 0.00322361856 = 23.1229342,
Divide the loan amount on the result: $50,000 / 23.1229342 = $2,162.36
Therefore, your monthly payments will be $2162,36. If you multiply $2,162.36 by 24, you will get total interest you overpay on the loan. Here, it is $1,888.
On the second option following the same calculations, your monthly payments will be $1,151.46, and the interest you will overpay is $5,270.30.
Second option allows you to contribute lower monthly payments, but you will pay $3,382 more interest.
You can assess if a particular option suits you by comparing loan details of different lenders. You can pre-qualify for a loan to receive a loan amount, term, and APR based on the information you provided to a lender.
Once you know your monthly payment and interest you will need to pay back to a lender, you can compare these options. You can use an online calculator to assess how much you will overpay on the interest. The longer the loan term you choose, the lower your monthly payments will be, but the more interest you will pay back. Calculate how much in monthly payments you will need to pay on your loan with different options, and how much you can save.
The best option depends on your financial situation and priority. If you want to pay the loan back faster and have a good credit score, opt for the short-term loan. However, a longer term will allow you to pay less each month. Don’t forget to add taxes, penalties and fees to know the total cost of your loan.
Online calculator is a tool for conducting calculations automatically through the internet. Depending on the available functions, you can solve different problems by performing sum, division, quotient, multiply, power, or square root calculations.
To conduct calculation in an online calculator, you need to fill in the numbers and tap the suitable buttons. The tool will perform calculations automatically.
You can assess if a particular option suits you by comparing loan details of different lenders. Once you have pre-qualified and got all the loan details, you can assume monthly payments and interest you will need to pay on a particular option.
