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5 Tips for Getting the Right Loan Calculator for You

5 Tips for Getting the Right Loan Calculator for You

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Taking out loans is a huge part of being able to pay for those major and often necessary life purchases such as cars, houses, or education. While it can be daunting to make the decision to take out loans, with the right information and tools such as loan calculator apps, the process doesn't have to be too difficult. Just read through these five tips to find the right apps and you'll be ready to go to your lender with knowledge and confidence.

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Go To Best 10 Loan Calculator Apps
  1. Learn about different loan types to find the best option
  2. Make big investments with long-term financing plans
  3. Know the real cost of a loan by computing the interest rate
  4. Pick an ideal payment plan by examining amortization options
  5. Plan your budget using accurate monthly payment calculators

When looking for the right loan calculator app, you want to be sure you get one that matches the type of loan you have or are planning on getting. There are many different kinds of loans depending on what the loan is for and what type of interest rate is involved. They type of loan you get determines whether or not you can use a standard amortization calculator when trying to calculate payments and amounts.

For example, mortgages are typically compounded through a process of amortization while auto loans tend to involve simple interest add-ons or simple interest amortizing. There are also a few different kinds of personal or bank loans. Most often they are fixed-rate, which means that the payment rate and the interest rate remain the same throughout the duration of the loan repayment. 

There are also unsecured and secured personal loans, unsecured meaning the loan is not back by collateral and secured meaning it is. Loans for commercial, agriculture or business purposes also differ from personal loans and often have a different amortization period.

Most likely you don't happen to have thousands and thousands of dollars sitting around in your savings to make a big purchase like a new home or car at any time. That's why you go to lenders like HP Mortgages or ICICI Bank loans to get what you need now and figure out how to comfortably pay it off over time without ending up paying too much. A loan calculator can help you figure out long-term financing with smaller payments that can fit in your budget

You can also calculate the interest rate accordingly to determine just how much you can pay month to month or year to year without breaking the bank but also paying in a timely enough matter that you don't spend too much extra money on interest at the end of the repayment.

You probably know already that the principal cost of the loan is not the entire amount that you will end up paying considering amortization and interest. The easiest way to figure out what you're really going to be paying at the end of the payment period or on a monthly basis is by using your own loan calculator.

If you're not the best with math or calculating numbers and percentages, a simple calculator is probably best to start with. The right calculator can tell you how to calculate your loans by guiding you through exactly what numbers to enter as far as the loan amount and interest rate for each loan type and give you an idea of your payments and accounting for any potential changes to the annual percentage rate or APR.

Different lenders often have different amortization options, which you will want to take into consideration as you're trying to pick a lender for your loan. If you're faced with these decisions, a good loan calculator will help you determine which of the amortization rate options will save you the most money in the long run while still fitting in your present day to day as well as your projected future budget. You may want to get a calculator that breaks down the payments for you and shows you a table so you can easily visualize which option is the best as you're comparing.

With a fixed-rate loan, it's pretty easy to calculate and understand your monthly payment, but if you have another type of loan you may have more varied payments from month to month. The easiest way to figure out what you're really going to be paying on a monthly basis is by using your own loan calculator

If you're not the best with math, Excel sheet finances, or calculating numbers and percentages, a simple calculator with a built-in formula and walk-through instructions is probably best to start with. These type of calculators can you figure out exactly what numbers to enter as far as the loan principal amount and interest rate for each loan type and give you an idea of your monthly installment balance.

You may also want to consider using a financial calculator to accurately plan your budget accordingly once you determine how much you will have to pay for your loan. That way you'll know what you can afford and you won't be too tight on money each month or end up having to figure out a settlement to payoff your loans.

Now you have all the information you need to start calculating loan rates for yourself. Make sure to take a look through our list of the Best 10 Loan Calculator Apps to see the best of the best while you're making your decisions.

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