What is a Finance Calculator?
A finance calculator is a common resource made available by all lending institutions, banks, or financial companies. The term “financial calculator” is a broad term used to describe all devices that will evaluate and forecast the fundamentals and pertinent numbers aligned with a loan agreement, an individual’s particular finances, or a number of other financial agreements.
A financial calculator is offered to the general public to streamline an individual or entity’s financial state; the financial calculator will organize an individual’s payments as they coordinate to a specific financing plan or loan obligation.
Benefits of a Finance Calculator
Although a finance calculator can be used for an assortment of financial matters, the most common types of the device are used to organize and elucidate upon an individual’s mortgage, their refinancing plan (if applicable) or the monthly payments of a particular loan.
A finance calculator is a vital resource for many individuals (particularly those who take-out loans) because the device enables an individual to determine the monthly payments on a loan, as well as how each payment affects the principal and the interest portion of the particular loan.
Additionally, a finance calculator will evaluate the expected maturity date of the loan; such a feature enables the individual to appropriately balance their budget as it pertain to their loan obligation. Although these benefits could be realized through a manual approach, the finance calculator streamlines the delivery of such information.
In addition to borrowers, a finance calculator is also utilized by lenders of various industries. For instance, mortgage loan officers and other lending professionals who are responsible for approving or establishing loan offers will use a finance calculator to evaluate the prospective borrower’s ability to repay the loan.
To evaluate a borrower’s ability to repay a loan contract, the lender will enter the specifics of the loan (the maturity date, the attached interest, the amount financed, and the expected monthly payments) against the individual’s monthly income, expenses, occupation and their credit history. When this information is submitted into a finance calculator, the device will organize the individual’s expected ability to meet the loan obligations as it pertains to the prospective borrower’s monthly income and expenditures.
The finance calculator is a simple, yet highly-beneficial tool. Although there are a number of finance calculators, the typical device will ask for the specifics of the individual’s loan agreement (interest rate, term, amount financed etc.), and their monthly income. This basic information may fluctuate based on the type of finance calculator being used; however, these two categories are the primary inputs necessary for a finance calculator.
Common Types of Finance Calculators
• Car loan finance calculator
• Mortgage Calculator
• Refinancing Calculator
• Basic Loan Calculator
• Credit Cards and Debt Management Calculator
• Investment Calculators
• Retirement Savings and Planning Calculators
• Personal Finance Calculators
• Insurance Calculators
• Savings Calculators