Loan Calculator – How much will it cost?

When you need money in a hurry, perhaps to cover an unexpected vets bill, car maintenance or a bill that you didn’t plan for, then you may turn to a  loan calculator.

Loans are a short term debt option which can help you when you need a small amount of money over a short term, particularly if that is quickly too.

One of the first questions that you will find yourself asking when you are looking at applying for and arranging a loan, is how much you can borrow? However, the next question that you are likely to consider is how much that lending will cost you?

As with any loan or financial agreement, there will be an interest rate applied to the money that you borrow. This interest rate can vary depending on where you are borrowing the money from and the type of loan or credit agreement that you are taking out. It can also depend on the risk factors that are taken into consideration when you take out the loan, particularly your own credit rating.

This interest rate is charged on top of the repayment that you need to make on your loan, meaning that whilst you may be making payments each and every month, not all of that money will be instantly reduced off your balance. This should always be taken into consideration when applying for a loan, or any other form of credit agreement.

How much will your loan cost?

How much do you want to borrow (£)? 

What’s the annual interest rate (APR%)?

How long do you want to borrow for (months)?

You may notice that compared to other forms of borrowing, the interest rate charged against your loan is higher. This is down to the nature of the loan. Loans are only ever designed to be a short term lending option, which is reflected in the interest rate that is charged.

You should also take into consideration any other charges that can apply for your loan, this vary from arrangement fees at the very beginning, to charges and fees for paying your repayments back later than the designated date.

Want to know how much your monthly repayments are likely to be? Then our useful  loan calculator can help you to ensure that you know how much you need to budget for each and every month.

The thing to remember about debt, and loans in particular is that you should only ever plan to  borrow as much money as you can pay back. This not only is the borrowing amount in full, but also the interest that will be charged during the duration of the loan.