Calculating a personal loan before applying for it can save your financial life and that of your family.
As a woman I can assure you that any prevention to protect your economy is important and you should never overlook it.
For this reason I have decided today to write about the importance of calculating the amount of your loan before deciding to apply for it, thus providing the risk that you will assume in your economy.
And, as my grandmother used to say, “preventable woman is worth two” …
I’ll start at the beginning, I’ll show you how you can calculate a personal loan yourself and at home using the loan calculator and the annual amortization table.
Are you ready? … Let’s start!
How to calculate a personal loan?
To calculate a personal loan it is necessary to consider 3 things:
- The interest rate to which the money lends us = i
- The repayment term = m
- The amount of money borrowed + interest = lm
Once we have these three data what we will do is calculate our personal loan with the following formula : Im = (1+ i ) (1 / m ) -1 It is important to be very clear that the interest rates will not change during the life of the loan, since this would involve recalculating the amortizations.
This is the way to calculate a personal loan correctly and also, understand the numbers easily.
And it’s not just about getting the best personal loan, you have to know if we can afford the monthly payments.
Credits can be an option to pay off the debt you have on credit cards that have a high interest or face large bills.
But like any debt, personal loans should not be taken lightly.
Once you have found out how much you need to borrow and how much you can pay each month, you can start looking for your credit.
Personal loan calculators help you know what to expect by submitting to that debt, you can better plan your economic future.
Learn what is the formula to calculate your personal loan correctly and that your bank can not deceive you and make you pay more.
Do you wonder if a personal loan is right for you? …
You do very well, it is important to ask yourself why you want to borrow money … Pay bills or move to a city with more job opportunities? Is it to eliminate debts from credit cards?
All of these are scenarios where it might make sense to consider the possibility of applying for affordable personal credit.
When I speak of an affordable credit I mean one that is within your financial and economic reality.
You will know this information when you properly calculate your personal loan.
The best way to do this calculation is with a personal loan calculator and knowing the repayment schedule of the loan’s useful life.
The loan calculator and amortization table
Maybe you’re wondering … What is a loan calculator? O What is the repayment schedule of a loan?
You do well to ask yourself these things, and I tell you this because if you want to correctly calculate a personal loan you need to master these two things.
The first thing is to know what it is and how to use a loan calculator , because with it we can know the fees and the total cost of your financing.
After learning this we can make our amortization table, so it is very important to know that it is a repayment schedule for a loan.
Let’s start with learning what a loan calculator is and where you can get one or use one.
A loan calculator, also known as an amortization chart calculator, allows you to estimate the monthly installments of your loans.
It also determines how much of your fees will go to the principal and how much will go toward the interest.
The use of a loan calculator is very simple you do not need to have any financial knowledge.
How to use a loan calculator?
To use a loan calculator you just have to enter the following information:
- The amount of your loan
- The interest rate
- The term of the loan
- The start date of the amortization
Once you have entered all these data you just have to click on “Calculate” and the calculator will give you the result of the operation.
Is not it complicated at all? … The loan repayment calculator should only be used to estimate your fees, since it does not include taxes or insurance.