Getting The Lowdown On Financial Calculators

May 16, 2011 - PRLog -- If you want to be able to calculate your loan and mortgage rates and payments, then its time you use a financial calculator. A simple, physical device that has an online version of itself, the financial calculator is excellent for calculating incurred interests, loan and mortgage repayment rates etc.  It has financial formulas already loaded, which is why it is easy to get the required figures.

Other than the physical device, a financial calculator (http://www.canadabanks.net/Financial-Calculators.aspx ) can be found on financial websites as a software to perform calculations. A basic financial calculator can be purchased for $35 and it is a must-have device if you are related to financial industry.

There are three basic types of financial calculators; loan calculators, mortgage calculators and credit card calculators. Let's describe each one of them respectively.

Loan Calculators

In its simplest form, a loan calculator is used to calculate loan amount payable with interest rate. The loan calculator works on particular variables and helps you decide what the monthly principal and interest payment would be. The loan calculator deals with the following values:

(a) The current loan amount

(b)Estimated repayment time

(c) Estimated interest rate.

You could either use a physical calculator or simply go online and use an online based loan calculator.

Mortgage Calculator (http://www.canadabanks.net/Mortgage-Calculator.aspx)

There are two mortgage calculators namely fixed rate and adjustable rate mortgage calculators

Fixed rate mortgage calculator requires information about.

(a) Amount to be borrowed.

(b) The interest rate on the loan amount

(c) Loan term

All you have to do is to insert the requisite numeric for the above values and get an estimate figure. Adjustable rate mortgage calculation is a little bit more difficult than the fixed rate calculator. You will need the following information.

(a) Amount to be borrowed.

(b) Interest value on loan amount.

(c) Loan term.

(d) The time before loan adjustment

(e) Interval value, after loan adjusts initially

(f) Rate after loan adjustment.

The fact remains that a mortgage calculator can just give you an estimate and not an exact figure, as mortgage rates, constantly varies. You have to be aware of the constantly changing interest rates, and should seek the help of financial experts, if you need an actual understanding of the mortgage payment amount.

Credit Calculator

Credit cards interest rates always fluctuate, and you need to be alert of it.Without a firsthand knowledge of where your credit is being spent, and what are the charges along with it, you would be caught in a whirl of debts. A credit calculator could be a vital tool in helping you attain this firsthand knowledge. This will help you to stay on guard and prevent any debt crisis. Information required for credit calculator is.

(a) Amount at present

(b) Interest on that amount

If you want you can also use online credit calculators, that will give you fast and updated values.

Mere calculations done on normal calculators cannot give you a satisfying answer to your loan calculations. Therefore, if you want to understand where your debts are headed, how much money you have to pay/spend, then a financial calculator is the best guide.

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Canadian Banks focuses on the Canadian banking industry, featuring articles about Canadian financial institutions, mortgage, credit and debt. The site also features loan, mortgage and credit calculators. http://www.canadabanks.net/