> Loan Calculator - UK Guide
In a nutshell
An online calculator that allows you to calculate various elements of loans.
Best Loan for
Anybody that wishes to work out what their loan repayments will be or to work out how much they will pay back overall. A loan calculator can also help you compare costs/APRs between lenders/loan products, can give estimates for related costs such as payment protection insurance and can help you work out how much you can afford to borrow.
Loan calculators can be used to calculate any size of loan.
Loan calculators can be used to show the differences in costs between different loan periods.
A loan calculator can be an extremely useful tool to use when you start your search for a loan. It can arm you with the basic background information you need and can help you budget before you buy. So, you can, for example, work out what your monthly repayments will be for a specific loan or based on a general interest rate. Or, you could use a calculator to see how much difference the term of your loan will make. A loan calculator can also be used as a loan comparison tool - so you can find online calculators that will compare a list of loans and show you how much they will cost you. This can also be extended to include other relevant information such as all related terms and conditions so you can get a better overall feel for what will suit you.
What to look out for
A comparison calculator won't compare every loan in the sector - it'll just concentrate on a few. So, you may find cheaper rates elsewhere if you shop around. You also have no guarantee that some loan calculators are completely accurate or that they contain current information - so you should try and find one on an established web site to get the most accurate information you can. And, you should bear in mind that the information you get from any calculator will just be for your assessment only - it won't be able to take into account any of your own circumstances that may affect the loan you can get. So, a web site might advertise a 6% rate - but you may not qualify for this.
There is no real alternative to a loan calculator.