A loan calculator is a tool that helps you calculate the monthly payments, total interest, and total cost of a loan. To use a loan calculator, you typically input information such as the loan amount, interest rate, and loan term (in months or years).
The calculator will then provide an estimate of the monthly payments, total interest, and total cost of the loan, based on the information you provided.
You can also try different scenarios, like varying the loan amount, interest rate, and loan term, to see how these factors affect your loan payments.
Additionally, loan calculators can also be used for other types of loans such as auto loans, personal loans, student loans, and credit card loans. The inputs might change depending on the type of loan, for example, for an auto loan, you will input the vehicle’s cost and trade-in value, besides the usual inputs.
It’s important to note that the results provided by a loan calculator are estimates and may not reflect your actual loan payments. It’s always best to consult with a lender or financial advisor to get a more accurate assessment of your loan terms and payments.