How does a loan calculator calculator?
To calculate the loan, you must enter the loan amount, specify the term of the contract and the amount of your interest rate. This calculator can calculate both fixed annuity and declining differentiated monthly payments (open the “advanced options” item).
Bid rate can be fixed or changeable. To select the second option, you need to enter the number from which the new percentage will be entered.
Thanks to our calculator, you no longer need to go to the bank to calculate the early repayment of the loan. And you can do it in just 2 minutes! To do this, simply enter some additional data in the form of the program:
- What number of pre-paid funds (in the case of a one-time payment) or a time period (if you plan to make regular payments several times a month);
- Amount of early payment;
- Indicate the loan recalculation option;
- You can enter an unlimited number of early payments.
The nuances of partial early debt repayment
There can be 2 types of write-offs with partial early repayment:
On the day when the next payment is made. With this method, the amount of debt is reduced by the amount of the extraordinary payment made.
Between regular payments. This option is somewhat more complicated in the calculations. Interest, depending on the size of the debt, is calculated daily, and repayment occurs once a month. By the day when the early payment is made, a certain amount of interest is accumulated, which is canceled due to the funds earmarked for the early payment. In this case only the remaining part of the sum will be used to pay the debt. The next month, the percentage of the next installment will decrease, since some of this interest has already been paid. There is no reason to worry about this moment and postpone early repayment at the time of the next installment. If the payment is made earlier, it will be more profitable.
After paying the extra payment, changes are made to the schedule of subsequent loan payments. The size of the principal debt is reduced and, as a result, one of the parameters changes: the loan term, or the amount of the monthly payment. A client of a banking institution can always choose a more convenient option. From this choice depends on how the bank will make the loan recalculation, and what will be formed next payment schedule. The updated schedule can be obtained at the bank office, or by logging into the Internet bank, if you have access to it. Our online calculator will give you the opportunity to choose any option and calculate the loan, depending on your choice. You will be available to a detailed schedule of payments, in which early repayments have already been taken into account and are indicated.
Reducing the term of the loan is beneficial because it reduces the total overpayment. From this it follows that if you are able to pay the monthly payment, then it is the loan period that should be reduced.
You can try different options of parameters in order to choose for yourself the most optimal payment scheme. The loan calculator stores the results of calculations, and you do not have to remember all the numbers entered and received earlier.
Variable interest rate
In the course of the loan interest rate is often subject to change. Such cases occur when, at the request of the borrower or under the terms of the contract, the bank revises the loan rate. Our calculator has its own function especially for such cases. You can specify as many interest rate changes as the loan progresses. For each individual time interval, it is necessary to establish the beginning of the validity of the bet and its size. In the payment schedule, all changes will be marked in color.