Before applying for a loan, a person would first want to compare interest rates of different loans and select the loan with the most reasonable rate. He would also like to know whether he can afford such a loan, meaning, would he be able to make the monthly payment towards the loan. For that, he needs to calculate the amount of monthly interest, taking into consideration the interest rate, the loan amount and the period of repayment.
Today, one does not need to manually make loan rate calculations. One can use a loan rates calculator available free on sites like bankrate.com. All one has to do is visit such a site, look for a link to the loan rates calculator and click on it. A page will be displayed showing the calculator.
The loan rates calculator will have the following boxes-
Once one enters all these details, the monthly payment amount will be displayed.
Some other calculators have a provision for entering the amount which a borrower can afford to pay on a monthly basis as interest. When he enters this along with other information, the rate of interest will be calculated and displayed. He can then take a loan which carries that particular interest rate.
In most of the sites, along with the loan rates calculator, there appears a table for amortization recalculation. This table has provisions for entering-
These entries are used to calculate the new date of final repayment of the loan.
Those who want to calculate interest payments need not try to make complicated calculations anymore. They need a best loan rates calculator.