In the world of financing these days, consumer convenience is now of the utmost importance. While the lenders will always be the ones calling the shots, consumers now wish to feel in control of the process – both when applying for a loan, and when managing its repayment. Financial institutions are increasingly geared towards offering no-hassle loans to individuals and even businesses, handing out quotation over the internet in a matter of hours. On top of this, borrower are now given a range of variables they can alter so as to create the right loan that suits them. This advanced loan payment calculator is designed to follow suit, allowing a prospective borrower to calculate their loan based on a range of different figures.
The advanced loan payment calculator is a complicated one, therefore it is important that we run through an example so as to understand it properly. Let’s imagine that a business owner wishes to take out a loan for $25,000, therefore we can enter this figure into the first field. The APR on a small business loan can vary, but on loans that are less than $100,000 can be 7% or 8%. Let’s enter 8% into the box marked APR. Finally, for the payment schedule, we can imagine that the borrower has selected a monthly schedule, with the loan length at 10 years (120 monthly payments) and that he or she will not have to begin paying for the first 6 months, or 180 days. Once we’ve entered these figures, we can find that the borrower will have a monthly payment of around $313.
How to use it
Once again, to use the advanced loan payment calculator, one must have previously researched the financing market and be aware of the input variables that are requested here. Begin by entering the “Amount Financed” into the first text box – that is, the size of the loan you wish to take out. This is followed by the APR, or annual percentage rate, which will be calculated depending on the other variables and can be entered underneath the amount. You can then choose your payment schedule where it says “Payment Frequency”, “Number of Payments” and “Days Until First Payment”. Again, it is important to research these variables with your lender before using the calculator.