Whatever kind of loan a person wants to take – a house loan or a car loan, a secured loan or an unsecured loan – he first wants to know the rate of interest he would be charged. Anyone in need of a loan would look for the cheapest loan available.
Today, almost every lender has a website. Also, there are websites which provide information about various kinds of loans and which are linked to many lenders. Both these kinds of sites generally have an online loan calculator.
An online loan calculator is very simple to use and one can easily calculate which loan is cheap. Generally, the calculator allows the following kinds of calculations:
A person may have come across a loan, the terms of which seem to be attractive and he may want to know whether he can actually afford to service that loan. He can calculate the monthly interest by entering the loan amount, the interest rate and the term of the loan in months. The calculator will display the monthly interest amount.
A person may want to know the maximum amount of loan he will get at a particular rate of interest. He knows the amount he can afford to pay every month as interest. He can make use of easy cheap loan calculators. All he needs to do is enter the monthly interest amount, the rate and the term of the loan, and he will get to know the loan amount he would be granted.
A person may have borrowed a loan when interest rates were high and now, he may want to switch to a loan with lower rates. But switching loans is not always profitable and by using easy cheap loan calculator, he can find out whether doing it is worthwhile. He would have to enter some details about the old loan and the interest rate for the new loan. The calculator will display the result.
Instead of doing complicated calculations manually, one can use easy cheap loan calculators.