The Internet has made so many tasks extremely easy. You can get any information within seconds, without the need to ask for anybody’s help. Even matters of personal finance can be sorted out within just a few moments by using appropriate tools.
Nowhere is this fact more evident than in calculating finance options. If you’re exploring options for a personal loan, for instance, you can simply browse several bank websites to know everything about the loan products they offer, to your eligibility for the same. However, how can you know exact calculations involved in a loan?
This is where finance calculators come in.
An online financial calculator is a fantastic tool that helps you make a decision on a financial product based on the best set of permutations you can make regarding your monthly income and desired amount of outgoing funds. For instance, if you are looking to buy a car, a car finance calculator will help you make every decision related to the purchase of the car, right from the kind of car you can afford to the down payment you should make.
Roughly, the car finance calculator will ask you to fill in details about your desired monthly payment amount and the rate of interest you wish to calculate the car loan at. Based on the information you feed, it will give you the tenure and monthly EMI amount. The more detailed the car finance calculator, the better placed you are to see how your loan amount and interest rates will translate in terms of your monthly payments.
There are categories for calculators, too. There are car affordability calculators as well as car loan calculators. In the former, if the car you want to buy costs a little over Dh 50,000 and you have ready cash of Dh 10,000 to invest in a down payment, you can fill in details about how much EMI you can afford to pay, the desired tenure in months or years, the desired interest rate and the down payment you can make. The calculator will then give you a set of numbers to show the car’s affordability.
Similarly, a car finance calculator can number crunch for you if you want to arrive at the best combination for tenure, interest rate and your desired EMI to arrive at an estimate of how much loan you can get for the car.