Financial Calculators – How Are They Helpful?

When it comes to calculation of loans and mortgages, there is a special calculator, known as the “Financial Calculator”. This is a simple device that is built purely for the calculation of financial matters, such as interest rate, loan rates, mortgage rates and so on. The calculator has built in formulas and thus makes it easy to calculate financial rates.

Apart from being a physical device, a financial calculator is also a small programmed tool, posted on financial websites, for people to calculate their rates instantly. A typical financial calculator could cost somewhere around $35, and if you happen to be in a finance industry, this is a much needed device Age calculator .

There are three basic types of financial calculators; Loan calculators, mortgage calculators and credit card calculators. Let’s describe each one of them respectively.

Loan Calculators

A loan calculator enables users to understand the payable amount of a loan, along with the specified interest rate. The loan calculator works on particular variables and helps you decide what the monthly principal and interest payment would be. There are three types of information used in a loan calculator:

(a) The actual loan amount
(b) Estimated repayment time
(c) Estimated interest rate.

You could either use a physical calculator or simply go online and use an online based loan calculator.

Mortgage Calculator

A mortgage branches out to two major types; fixed rate and adjustable rate mortgages. Fixed rate mortgage calculator requires information about:

(a) Amount to be borrowed.
(b) Interest rate
(c) Loan term
Punch in the values for the above information and you will get all the required calculations. The adjustable rate mortgage calculator is complex. You will need the following information:
(a) Amount to be borrowed.
(b) Interest rate
(c) Loan term
(d) Initial length of time before loan adjusts
(e) Interval value, after loan adjusts initially
(f) Estimated rate after each adjustment

 

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