The Invezz loan calculator gives you all the information you need to figure out all the details on how quickly you can pay back your loan and how much it will cost you. Keep reading to see how our loan calculator works.
How to use our loan calculator
To use our loan calculator, just follow these steps:
- Enter in the total loan amount.
- Enter in the remaining term on the loan (usually expressed in months).
- Enter in the interest rate you are paying.
- Enter in the frequency with which you plan to make your payments. For instance, if you have a home loan and you opt to make payments every two weeks instead of every month, you’ll be able to pay off the loan a little quicker that way.
How the loan calculator works
The Invezz loan calculator takes several key pieces of information regarding your loan, then produces a series of important outputs, including the monthly cost of your loan, the total paid back, the total amount of interest being paid over the lifetime of the loan, and the time it will take you to pay it all back.
Why should I use it?
Our loan calculator can serve as a highly useful budgeting tool. By knowing exactly what you owe on a loan and how much interest you’re paying on it, you can use that information to inform your other financial decisions.
For instance, if you have come across a fixed-income investment opportunity that would yield 3%, but you’re paying a 5% interest rate on your loan, paying off the loan becomes the better financial decision if you only have the funds for one opportunity.
What is a loan?
A loan is something that is borrowed, usually in the form of money, with an agreed time period within which it has to be paid back. Although interest-free loans do exist, it’s more common to receive loans that require you to pay interest for a certain amount of time, in exchange for the lender agreeing to front you a certain amount of money, either directly or as a means of payment for an asset such as a house or a car.