There is difficult to understand a variety of offers in the market for credit and loans. In order to compare prices and services, one should know how credit rates and interest rates are calculated for different types of loans.
Taking out a loan is part of everyday life for many people today. However, there is a real excess of offers. In order not to lose sight of the overview and to make the right choice, it is advisable to familiarize yourself with the generally applicable calculation bases and to extensively examine the offers, some of which sound very tempting.
The calculation of loans is one of the fundamental subject areas of financial mathematics and can be implemented relatively quickly and easily with just a few key figures. To calculate a loan, the key figures are the amount of the net loan amount , the repayment period and the required loan interest . If, for example, a loan amount of USD 10,000 is to be applied for 5 years, the potential borrower would incur a loan cost of USD 11,322.74 with an annual borrowing rate of 5.00 percent, insofar as this should be an annuity loan. In the following article, the reader should be given some interesting information about the topic of loan calculation.
The classic formula for loan calculation is still used today
The amount of the monthly loan installment is made up as follows:
monthly loan rate = loan amount x (debit interest rate plus repayment interest rate) / loan term in months
With this formula, the amount of the loan rate per month can be calculated sufficiently. If a key figure is missing here, the formula can be changed according to the key figure you are looking for, so that the amount of the debit interest rate or repayment interest rate as well as the length of the loan term can be calculated in months .
Remedial measures in terms of loan calculation are provided by advantageous online loan calculators
A loan can now be calculated faster and more easily by using practical online loan calculators on the net. For example, with the loan calculator for building finance.
Instead of calculating the relevant key figures yourself using a mobile phone calculator or calculator, the data needed to calculate loans simply have to be entered in the loan calculator. The amount of the monthly loan installment and the amount of the borrowing rate plus repayment rate can then be determined at the push of a button. With regard to real estate financing, other key figures can also be entered in the online loan calculator that allow a loan calculation that is as realistic as possible – for example, the length of the debit interest rate or the amount of the equity component .
Calculate loans for different types of loans
In the case of an annuity loan, the interest payment component falls and the repayment component increases in the course of the loan repayment. As a result, annuity loans are initially repaid very slowly, but at the end of financing they are getting faster and faster and interest costs are lower – but the credit rate remains the same over the entire period. With an installment loan, on the other hand, the amount of the monthly repayment installments is always the same, but here, too, the interest burden decreases over the course of the repayment period. The loan installment to be paid is getting lower and lower every month. Another form of loan is the final loan. Here, the potential borrower pays a corresponding monthly loan interest for the entire loan over the entire loan term and pays this exactly at the end of the previously selected loan term – in a single installment.
Conclusion on the topic of loan calculation today
With the help of free and independent online loan calculators, loans can be compiled relatively quickly and easily, which also exactly meet individual requirements. Depending on the individual case, complete real estate financing with equity contribution and other funding options can also be included in the loan calculation. Furthermore, there are sometimes diverse forms of financing, especially in the area of car loans, such as three-way financing, which can also be calculated using classic online loan calculator tools.