This personal loan calculator can or will help you find the loan options that are right for you. This post contains affiliate links/ads. See disclosure policy.
Personal loans can be your ticket to paying off your outstanding debt. That's what my wife and I did to help us get out of a bad financial situation. You can use these personal loans to pay off high-interest credit card debt or other bills.
Personal loans can be a blessing a disguise or another problem to add on your list. Loans like these are not to be taken lightly.
Once you have figured out how much you need to borrow, how much you can pay for each month, and how long the your loan term is, then, it is the time to shop around. This personal loan calculator can help you understand what to expect.
This personal loan calculator calculates the monthly payment, which takes into account the interest rate, the loan amount, and the loan term.
The amortization or pay-down of the loans over time is simply calculated by subtracting the principal amount from each of the monthly payments from the loan balance.
Over time, the interest payments and the principal portion of the payment reduce the loan balance, resulting in a $0.00 balance at the end of the loan term.
Personal Loan Calculator FAQs
1. Is a personal loan right for me?
It is important to ask this question before you go ahead and apply for a personal loan. You need to follow up with this questions with other questions such as “How much do I need to borrow?, “How much savings can I make if I use this loan to pay my outstanding financial responsibilities”, etc.
These are some of the questions that can help you understand if a personal loan is the right debt instrument for you. You can use this personal loan calculator to help you answer this question.
2. Is a personal loan affordable?
Affordability is the heart of why you want to decide if personal loan is for you. You don't want to get a personal loan if you are just going to bury yourself in more debt.
The main goal of a personal loan is to help you out not help you bury yourself in a deeper debt.
Even a loan with a very low interest rate could leave you with monthly payments, which could be higher than what you can afford. Make sure you calculate the total interest you will have made by the time you finish paying this loan.
3. Where can I get the best personal loan offers or rates?
The best way to find the best personal loan offers or rates is to try the personal loan calculator. Right below the graph, you will see several companies. The companies offer various rates. Some of them offer fixed rates and some offer are variable.
Make sure to scroll on the list as it contains more companies than what is currently displayed.