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If you have been searching for the cheapest secured loan but are confused by an overwhelming number of quotes, you may want to use a secured loan calculator. A secured loan calculator is a handy tool for determining the monthly loan payments and interest rate of a loan. Read on to learn everything you need to know about using a secured loan calculator.
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If you have been searching for the cheapest secured loan but are confused by an overwhelming number of quotes, you may want to use a secured loan calculator. A secured loan calculator is a handy tool for determining the monthly loan payments and interest rate of a loan. Read on to learn everything you need to know about using a secured loan calculator.
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Introduction
- The purpose of a secured loan calculator is to determine which secured loan is best for you. A secured loan is a loan backed by the borrower's collateral; the collateral is forfeited to the lender if the borrower cannot pay the loan. Secured loan calculators help borrowers estimate the monthly cost and interest of a loan so they can decide what loan payments and terms will be best for their finances.
Step 1: Choose an Online Calculator
- There are many online secured loan calculators. A secured loan calculator should allow you to input:
- The loan amount.
- The repayment period.
- The interest rate.
- Choose the calculator that best meets your needs. For more information on choosing a secured loan calculator, check out Mahalo's How to Find a Secured Loan Calculator.
Step 2: Enter the Loan Amount
- A secured loan will allow you to borrow more money than if you were getting an unsecured loan. Remember, if you default on your secured loan you will lose whatever you used as collateral.
- Enter the total loan amount in the space provided.
- For example: If you are borrowing $10,000, enter 10,000.
Step 3: Enter the Term of the Loan
- The term of the loan may also be referred to as the repayment period and is the length of the loan. A long repayment period equals smaller monthly payments but more accrued interest.
- When entering the number, pay attention!
- The calculator might ask for the term in months or years depending on that particular calculator.
- For example: If the life of your loan is 24 months and the calculator asks for the repayment period in years, you would enter two.
Step 4: Enter the Interest Rate
- Interest rates may vary greatly from secured loan to secured loan. Keep in mind, the interest rate will have a major effect on your monthly payments.
- Enter the interest rate of the loan in the space provided.
- For example: If your interest rate is 18.5 percent, enter 18.5.
Step 5: Calculate
- Click Calculate to see your estimated monthly payment.
- For example, if your loan amount was $10,000, the term was two years and the interest rate was 18.5 percent, your monthly payment would be $501.66.
- Depending on the calculator you choose, the monthly payment may be divided into the following:
- Principal remaining.
- Principal paid.
- Interest paid.
- Cumulative payments.
- Cumulative interest paid.
- Feel free to enter different quotes to find the best deal.
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Table of Contents
- Introduction
- Step 1: Choose an Online Calculator
- Step 2: Enter the Loan Amount
- Step 3: Enter the Term of the Loan
- Step 4: Enter the Interest Rate
- Step 5: Calculate
- Conclusion
- AND pick another item or two from this page
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