The purpose of an unsecured loan calculator is to determine which unsecured loan will be the best deal for you. Enter the loan amount, repayment period and interest rate into a loan calculator to estimate your monthly payments. Read on to learn everything you need to know about how to use an unsecured loan calculator.

An unsecured loan is a loan that is not backed by collateral. Use an unsecured loan calculator to compare loan quotes or determine if you can afford monthly loan payments. Unsecured loan calculators help borrowers determine which loan quote is the best deal by estimating monthly payments and accrued interest cost.

• There are many online secured loan calculators. A secured loan calculator should allow you to input:

1. The loan amount.
2. The repayment period.
3. The interest rate.

Once you gather a few unsecured loan quotes, you can compare deals by inputting the loan terms into an unsecured loan calculator.

Enter the Loan Amount

• The loan amount is the total amount of money you will borrow.

Enter the Term of the Loan

• The term of the loan, also known as the repayment period and the life of the loan, is the number of months or years you have to pay off the loan. Remember, a long repayment period equals smaller monthly payments but more accrued interest.

Enter the Interest Rate

• Keep in mind, the interest rate will have a major effect on your monthly payments.

• Click Calculate to see your estimated monthly payment. Depending on the calculator, there may be additional information provided for each monthly payment, including:

1. Principal remaining.
2. Principal paid.
3. Interest paid.
4. Cumulative payments.
5. Cumulative interest paid.

• To get the most out of an unsecured loan calculator, enter multiple quotes. This way you can compare loans to find the best deal.

• Using an unsecured loan calculator is a great way to compare multiple quotes and determine monthly payments. Use unsecured loan calculators to find the most affordable loan.

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The content in this page is not a substitute for professional financial advice. Please contact your financial adviser before using the information presented here.