Loan Calculators

Getting a loan is a good way to make sure you’ve got enough money to get through the proverbial rainy days. However, it’s also a good way to kick yourself in the seat of the pants if you bite off more than you can chew. Loan calculators are some of the common tools used these days to help loan applicants figure out if they’ll be getting a good deal on a loan.

There are 3 common types of loan calculators used these days, as they address the most common types of loans that people apply for. These are: Loan Payment Calculators, Mortgage Home Loan Calculators, and Auto Loan Calculators.

1) Loan Payment calculators are made for general loans made. There are a lot of different types of payment calculators, but their common purpose is to give information regarding how much payment a loan applicant will have to shell out in a month to cover a loan by the end of it’s specified payment date.

The requested information in a loan payment calculator generally just asks for the following: The Loan Principal, which is the actual size of the loan, minus any initial down payments made. Then the interest rate is requested. Lastly, the payment deadline (aka, the amount of time you have to pay the loan in full) is needed.

Once the required fields are filled, the calculator will give you an estimated monthly amount you have to pay to cover the loan in full by the deadline. Some of the more detailed calculators also show the total amount that you’ll have paid by the end of the loan, including payments you made to cover interest.

Simple loan payment calculators, however, don’t factor in things like taxes, insurance, or miscellaneous periodic charges made by the financial institution that’s footing your loan. Advanced loan payment calculators are also availabe that include these additional fields in case you need to factor them in.

2) Mortgage Home Loan Calculators – these are loan calculators that are used to help you get a good idea of how much you have to pay every month to cover your house’s mortgage. The basic entry fields for a mortgage calculator are similar to loan payment calculators. The mortgage amount is equivalent to the loan amount, the mortgage terms indicate how long you have to pay the mortgage, and the interest rate of it.

However, home loan calculators also feature a seperate field for any Extra payments you may make on your mortgage. These make allowances for 1-time added payments, annual extra payments, and any monthly amounts that you may want to add on top off your regular monthly payments. These extra payments are factored into the calculator and can also show you how much time you’ll save on your final mortgage terms by making these extra payments.

Lastly, home loan calculators can also generate an amortization table, which shows you a full monthly schedule of the payments you’ll be making, as well as how much remaining balance you’ll have on your mortgage amount after each payment is made. This includes not only the basic monthly calculated payments, but any extra payments you may decide to include to pay off your house faster.

3) Auto Loan Calculators – these car loan calculators pretty much run along the same basic lines as the other two above calculators. However, instead of a loan amount, you have to input the price of the vehicle before taxes. Interest rate and terms of payment (aka the number of months to pay the car) are likewise the same.

However, car loans also factor in other things like additional taxable and non taxable fees, sales tax rates, and cash downpayments on the car. Some auto loan calculators even include a field for trade-ins, where you should input the amount of money offset by trading in an old vehicle to get the loan for your new one. These added fields are all taken into account when making a calculation for your monthly payments for your auto loan.

Another differences between auto loan calculators and the other two types of calculators is that the national interest rates for car loans differ on whether your loan is for the purchase of a brand new vehicle or a second hand one. This is also factored in to some of the more advanced auto loan calculators.