Loan Calculator by Favstool

The Favstool loan calculator is a web-based tool. It helps users calculate their loan payments easily. This calculator saves time by quickly computing the total payable amount. Users just enter their loan details, and the calculator provides results instantly.

How to Use the Loan Calculator?

The Favstool loan calculator has four different modes. You can use it to find various loan-related values. Follow these instructions to get accurate results.

Find the Payment Amount

• Select “Find the Monthly Payment” from the dropdown menu.

• Enter the loan amount.

• Add the interest rate.

• Choose the number of months.

• Click the “Calculate” button.

How Does it Work?

The formula used is: PMT = (i * PV) / (1 – (1 + i)^-n)

• PMT = Monthly Payment

• i = Interest Rate

• PV = Loan Amount

• n = Total number of months

Find the Loan Amount

• Select “Find the Loan Amount” from the list.

• Enter the interest rate.

• Add the number of months.

• Enter the monthly payment amount.

• Click “Calculate” to get the loan amount.

How Does it Work?

The formula used is: PV = PMT * (1 – (1 + i)^-n) / i

Find the Interest Rate

• Select “Find the Interest Rate.”

• Enter the loan amount.

• Add the number of months.

• Enter the monthly payment amount.

• Click “Calculate” to find the interest rate.

How Does it Work?

This mode uses the Newton-Raphson method. It is an advanced root-finding algorithm used to determine interest rates.

Find the Number of Payments

• Select “Find the Number of Payments.”

• Enter the loan amount.

• Add the interest rate.

• Enter the monthly payment amount.

• Click “Calculate” to find the number of payments.

How Does it Work?

This mode follows the same formula used in other modes but rearranges it to determine the total number of months required to repay the loan.

Loan Estimation Factors

Loan Amount

This is the total money borrowed from a financial institution.

Loan Term

This is the period in which the borrower repays the loan.

Interest Rate

This is the extra percentage a lender charges on the borrowed amount.

Compounding

This refers to how interest is added to the loan over time. Interest is charged on both the principal amount and previously added interest.

Monthly Payment

The fixed amount a borrower pays each month until the loan is fully repaid.

Disclaimer

The Favstool Loan Calculator does not represent any bank or financial institution. The results provided are estimates. The actual loan terms depend on the lender’s policies.

Types of Loan Calculators

Auto Loan Calculator

This calculator helps users find out the total cost of purchasing a vehicle, including interest.

Mortgage Loan Calculator

Users can calculate their monthly payments for buying a home with this calculator.

Home Loan Calculator

This tool estimates loan payments for home purchases, considering down payments and interest rates.

Personal Loan Calculator

It helps users calculate monthly payments for personal loans and make better financial decisions.

Student Loan Calculator

This tool helps students plan their education expenses and repayment amounts.

Business Loan Calculator

Businesses use this tool to estimate loan payments, annual interest, and repayment periods.

Secured vs. Unsecured Loans

Secured Loans

A secured loan requires the borrower to provide an asset (like a car or house) as collateral.

Unsecured Loans

An unsecured loan does not require collateral. The lender evaluates the borrower’s financial situation before approving the loan.

FAQs

What’s a Good Interest Rate on a Personal Loan?

A good interest rate varies by country and economy. Generally, lower interest rates are better.

Where Can I Get a Personal Loan?

The best places to get a personal loan are:

• Online lenders

• Peer-to-peer lenders

• Credit unions

• Banks

What Affects the Interest Rate on a Loan?

Several factors affect loan interest rates, such as:

• Loan type (secured loans usually have lower rates).

• Economic conditions.

• Borrower’s credit score (higher scores get better rates).

How Can I Determine How Much Loan I Can Afford?

The best way is to use the Favstool Loan Calculator. Enter your details to see how much you can afford to borrow.

The Favstool Loan Calculator is a simple and useful tool for managing loan calculations. It helps users make informed financial decisions. Try it today and get instant loan estimates!