Why would you use a Loan Calculator?

A Loan Calculator is a useful tool when considering applying for a loan. It allows you to estimate your potential monthly repayments before formally applying. There are several reasons why using a Loan Calculator is recommended:

1. To get an idea of affordability: The calculator gives you an estimate of the monthly costs. This allows you to determine if the repayment amount fits within your current budget.
2. Compare loans: By inputting different loan amounts, terms and interest rates, you can get estimates on multiple loans. This makes it easy to compare options.
3. Prepare your finances: Knowing the potential monthly repayment can help you plan your finances. You can start budgeting to ensure you have enough funds to make the monthly payments.
4. Estimate total interest costs: The calculator sums up interest charges over the full term. This gives insight into the total borrowing costs.