Simple steps to Use a Calculator to quote your Loan Repayments

You need to assess the financial stability and ability to pay off your loans first before you apply for a loan. It is necessary to remind you that some of the inconsistencies and lapses in payment can worsen your credit score and make you end up with a debt that has accumulated due to the accumulation of interest on your monthly payment.

Before you apply the loan, it would be better if you first assess and analyze your payment options. One of the best ways to do this is to use a loan repayment calculator. Below are the steps to quote loan repayment using loan repayment calculator:

1. First, clear your calculator memory before creating a new calculation to avoid inaccurate results.
2. Wait until the word "Begin" appears on the screen before you enter a value. If the word is still relies not appear, you can press the "g" button and then pressing the "7" button.
3. Enter the amount of the loan that you want and then press the "CHS" (Sing Change button). After the figures appearing on the screen then press the "PV" (the present value) key.
4. Enter your loan term in months. For example, if you want to pay off your loan in 5 years, then the value you enter is 12x5 = 60. Enter the number 60 and then press the "n" button.
5. Enter the interest rate of your loan, then press the "g" button and the "i" button. For example, if your loan interest rate is 9%, then when you hit the "g" and the "i" and will get a 0.75 rate based on 9% annual interest rate.
6. Enter the lump sum payment by entering the amount you would expect to pay at the end of your loan. After that press the "FV" (the Future Value). For example, if your loan amount is $20,000 and you want to pay 10% as a lump sum at the end of your loan, then enter a value of 2000 and then press the "FV". But if you do not want to pay a lump sum at the end of your loan, then enter a value of 0 and then press the "FV".
7. Press the "PMT" button to calculate your repayments. After that you will get your results in a monthly payment.

So in conclusion, you will need to enter your loan amount, repayment terms, interest rate, and lump sum to calculate your monthly repayment. For example, if your loan amount is $20,000 and is paid for 60 months with 9% interest rate and lump sum $2,000, then your monthly repayment is $386.00.

Another advantage that you can get by using this calculator is that you can check at the rate quoted by your lender. There are some financier that good to hide certain fees and charges. By re-check with this calculator, you will be able to save you from signing a contract with a loan rate that is not to your liking. For example, the interest rate of 8% with hidden charges, then in fact you are paying 8.75% on the total.

With all these advantages, the calculator also has limitations. You may need to consult with your financial adviser to other criteria such as financial liabilities and future investments before you decide to apply for a loan.