Interest Rate Calculator - Calculatorall.com
This interest rate calculator can be used for determining real rates of interest on loans having fixed monthly payments and terms. For instance, the calculator can be used in situations where dealers only give information related to monthly payments and the total price not letting you know what actual rate is. So, for calculating interest on your investment, you can use this interest rate calculator.
What Is Interest Rate?
Interest rate refers to an amount that lenders charge from the borrowers, expressed in terms of a certain percentage of the principal amount, for use of different assets. Most of the times, these rates of interest are expressed as an annual figure, but daily, monthly and other such periods are also in practice. For example, if 8% annual rate of interest is applied to a loan of $100 will mean that the borrower has to pay $108 when the year ends. Most of the interests today are compounded; this means even the interest that the lenders earn subsequently earns more interest with time. The frequency of compounding of the interest in any given period of time actually determines how much interest gets accrued.
The rate of interest that applies to a loan directly impacts the total amount of interest that you have to pay. So, it is best for you to only get the loan at desired rates. Generally, lowest available rates are preferable for the borrowers. On the other hand, lenders want to lend their money at higher rates of interest.
Tax Rate
There are a few types of interest incomes on which you have to pay tax. A few examples could be savings, bonds and certificates of deposit. As far as the US is concerned, there is tax imposed on corporate bonds always. There are some types of bonds that are taxed fully while others are taxed partially. And these taxes can impact end balances big time. So, this interest calculator also considers the tax rate if applicable.
What Is APR?
The rate of interest that often applies to most of the loans is advertised as APR or Annual Percentage Rate. The use of APRs is common with car or home buying and they are a bit different from usual interest rates as fees are normally packaged into these. For example, any administrative fees normally due at the time of buying a car is rolled into loan financing and you don't have to pay the fees separately.
How To Get Best Rates Of Interest?
If you want to ensure that you get loans on low interest rate, you simply have to make sure that you maintain good credit score. However, there are other options that you can try for this as well. Use this interest rate calculator to determine what kind of interest you'll have to pay on different loan options available to you. You can also put up some collateral against the borrowed amount or opt to make a bigger down payment. Loan rate can also be reduced by opting for different services from same bank as this will entitle you to certain discount. In addition, you should also take a loan in slow economic conditions where loans are not in high demand as this will put you in a better position to negotiate.
Also, shop around and find out what different banks are offering and then use the interest rate calculator for the comparison of the available loan options. This will allow you to get better terms and better rates by negotiating properly with the lenders as you'll be equipped with right kind of information.
This is a simple interest rate calculator that only requires you to provide three simple values as input. You just have to enter the loan amount, term of your loan and the monthly payment that you will have to make. Hit the calculate button on the interest rate calculator and it will tell you the rate of interest that will be applied to the loan. Remember that it is a likely number and may vary a bit with different lenders.
The interest rate calculator not just tells you the rate that will be applied to your loan but it also gives you insights into how much you will be paying during the term of your loan and the total amount of interest that you will have to pay. The interest amount is already covered in the total payments you'll be making during your loan term but the interest rate calculator shows it separately as well to give you an idea what interest payments you will have to make on your loan.
So, use this interest rate calculator and find out which lender is giving you the better rate compared to other available options.