# Cash loan calculator. How to calculate loan installments?

August 5, 2019 0 Comment You don’t know how to calculate loan installments? It will be best to use the available cash loan calculators . In this way you can quickly check whether the cash loan offer that the bank has presented to you is certainly as beneficial as provided by an advisor or consultant.

Calculating the cost of a cash loan, when the bank calculates interest and commissions, and several other fees is not that easy. Even if you try to calculate the cost of a cash loan per year, it can be as complicated as calculating the cost of a cash loan for 10 years. Well-configured cash loan calculators come to the rescue.

## Cash loan calculator – calculate loan installments Thanks to the cash loan calculators, you can not only calculate the total cost of the cash loan that the bank will propose to you, but also get to know the repayment schedule – the installment in each month of repayment of the loan liability, broken down into principal and interest.

The cost of the loan includes not only interest, but also commissions, commission collection method and debt repayment formula – the final loan price is also influenced by additional insurance, which is sometimes required by the bank. This makes calculating the price of cash loans not always that easy.

## How do you calculate the cost of a cash loan? To calculate the cost of a cash loan using the loan calculator, you must correctly enter all loan price parameters. A well-constructed loan calculator should require the user to provide: loan amount, loan commission, loan interest rate, loan repayment period (for how long the loan repayment is to be spread) and the type of installments the borrower will repay.

In addition to the fact that the interest and commission rates themselves are of course important, it is important for the calculator and the correct calculation of the cost of the cash loan to provide the formula for repayment of both parameters. The interest rate has a direct impact on the amount of interest – depending on whether the installments will be repaid in the form of equal or decreasing installments, the value of accrued interest may increase. Choosing equal installments , we pay the same installment every month, but we pay back the capital part more slowly – so the bank charges interest on a larger part of the debt.

In addition, the method of collecting the loan commission by the bank is an important value for the correct calculation of the loan cost in the calculator. If the commission increases the amount of the cash loan, the calculator will add it to the amount borrowed – interest will therefore be calculated from the higher value. If, on the other hand, the commission reduces the amount of the loan to be paid, the interest will be similarly lower, because the borrower will “repay” the commission as soon as the commitment is made.