Getting a loan is something you should do only if you have no other way of accessing extra cash. While you may think that you can repay the loan amount, it’s better to have a clear understanding of how much you will be able to repay at the end of the loan term.
Why use the loan repayment calculator:
Various lending institutions have a range of loan calculators available to assist you. Whether it’s for vehicle finance, a short term loan or a mortgage, various institutions have calculators to help you.
How it works:
You will enter the amount you wish to loan as well as the repayment period you are comfortable with.
An interest rate will be allocated to the loan and will be used to calculate the actual loan amount you will be liable for.
It’s important to keep in mind that the amount calculated will be an estimate. You should contact the bank or the lender you will be approaching directly to get an accurate repayment figure and quote.
Some loan repayment calculators help you work out how much you are likely to afford to repay, by using your disposable income as a basis. This may be the most accurate type of calculation, because it takes into consideration your affordability as an individual.
Using a loan repayment calculator can be highly useful for budgeting purposes. It can help you get a realistic idea of how much you need to be earning on a monthly basis, to be able to afford the repayments comfortably.