The Payment Calculator is a financial tool used frequently in many online banking and financial services websites. It can quickly determine the amount to be paid monthly for an unsecured loan or the monthly payment for a secured loan. To use this tool simply enter the loan amount, interest rate and term into the Payment Calculator. You will get the following output:
Use the Fixed Term tab to determine the principal loan amount for a secured loan. In this example, assume that you are applying for a $1000 loan with a 10 year term. The Payment Calculator will display the amount of monthly payments you would pay over the long term. To change the amount of the loan term, click on the down arrow next to the option marked “Decreasing loan term.”
The calculator will also display the current interest rate. In this case, the loan details are: Loan Name: Chase Bank Type: Home Equity Line of Credit Obtained: 1000 dollars Down Payment: $100 Other Details: Address: 24th Street, Suite: Midtown Location: Clarkville, MO Show us your Payment Calculator
To change the value of the interest rate, click on the down arrow next to the option marked “Decreasing loan term.” In this case, the loan term will become six months. The calculator will also display the current interest rate. In this case, the calculator indicates that you will pay a quarter point less than the current interest rate. The value of the variable is still set to zero.
To find out the cost of the loan you are considering, use the Percentage Cost of Mortgage calculator. In this example, assume that the mortgage payment is ten percent of the home price. In this case, the loan term will be six months. The displayed mortgage payment will be: $2,500 – (10 percent x 6 months x 100).
If you would like to see how much your monthly payments will be if you choose the fixed interest rate, click on the down arrow next to “fixed-rate.” In this case, the interest rate will remain the same for the life of the loan. The displayed amount will be the exact amount of the interest rate plus whatever fees you are charged. To make a more complicated comparison, you can input additional information into the mortgage calculator. In this case, you will see how much money you could save if you change the number of months at the end of the loan term from six to twelve. The calculator will also tell you if the annual percentage rate will change when you do this.