A majority of people were bored to tears in math class and everything their teachers said back in high school went in one ear and right out the other. While many of their lessons don't apply to daily life, the parts about calculating loan interest and other payments are certainly useful for everyone. The good news is that there are many different calculators online that do all of the work automatically. With these tools, anyone can just type in the numbers that apply to them in order to automatically calculate loan interest, payments, and a variety of other financial details. Those who are interested in planning their future financial situation should keep on reading to find out more about the various calculators that make pencil and paper equations obsolete.

Loan Calculators

This is a great tool to use before signing any loan documents or financing a large purchase. While it is advisable to use one of these calculators and then getting a loan, it is still useful to employ during a loan period in order to check the progress of paying it off. You can find a multitude of these calculators online but the one featured on Bankrate.com is a great place to start.

Using a loan calculator is as simple as typing in the loan amount, the loan term, and the interest rate charged per year. A good loan repayment calculator will let the user enter the loan term in either years or months since many loans work on a monthly basis. Once all the data is entered, the calculator will show the monthly payment that needs to be made if the loan is finalized. Advanced calculators will even display the amortization schedule, which shows how much of each payment goes towards the principal and how much is just paying off interest. Consider paying additional funds on the principal each month in order to shorten the loan term if possible.

Payment Calculators

There are also a variety of loan payment calculators that analyze how much will be paid each month on large purchases such as cars and houses. The great thing about these tools is the sheer number of options that are available to customize the exact payment being made. For instance, car payment calculators let the user type in the trade value of their existing vehicle in order to have it reflect in the payments each month. There are also options to input sales tax for the state in which the purchase is made. Advanced calculators even allow the user to input the down payment is made in order to see the most accurate calculation possible.

Mortgage payment calculators are very similar in that they give the user flexibility when typing in their specific data. Things such as home insurance, utility bills, and down payments can all be factored into the equation. There are many payment calculators available online so make sure the one being used has as many relevant features as possible.

Other Useful Financial Calculators

Another useful type of calculator is one that shows how investments will grow over time. Compound Interest Calculators are a great tool for planning retirement or to just see how much one can make from investing in something over a period of time. Great compound interests calculators allow the user to type in the initial amount being invested, the amount of money added each month, the rate at which it grows, and the number of years the investor plans to leave their cash in an investment vehicle.

Many compound interest calculators even allow the user to customize whether the interest is compounded monthly, quarterly, or annually. This is a great way to see how different dividend schedules will pay out over time. Stocks that are held for long periods often pay out dividends to keep investors locked into place. If something more simple is desired, the user can opt for a simple calculator that shows how their 401k will grow over time in order to see when they will be able to retire comfortably.