Frequently Asked Questions
1. What is a loan calculator?
A loan calculator is an online tool that helps you estimate your monthly repayments and total cost of a loan based on the loan amount, interest rate, and loan term.
2. How accurate is the loan calculator?
The loan calculator provides estimates based on the information you input. Actual loan terms and conditions may vary, so it is best to consult with your lender for precise details.
3. Can I use the loan calculator for any type of loan?
Yes, you can use the loan calculator for personal loans, car loans, home loans, and other types of fixed-rate loans.
4. How do I use the loan calculator?
Simply enter the loan amount, interest rate, loan term, and start date into the calculator fields. The tool will automatically compute your monthly repayment and other loan details.
5. What information do I need to use the loan calculator?
You need the loan amount, interest rate, loan term (in years or months), and the start date of the loan.
6. What does the 'Total Loan Value' include?
The 'Total Loan Value' includes the principal amount borrowed plus the total interest paid over the life of the loan.
7. Can I adjust the loan calculator settings?
Yes, you can adjust the loan amount, interest rate, loan term, and start date to see how different scenarios affect your loan repayment schedule.
8. What does the 'Monthly Repayment' figure mean?
The 'Monthly Repayment' figure represents the amount you will need to pay each month to repay your loan, including both principal and interest.
9. What is the 'Effective Interest Rate'?
The 'Effective Interest Rate' is the annual interest rate accounting for compounding over the term of the loan. It gives you a better idea of the true cost of the loan.
10. How does the repayment schedule help me?
The repayment schedule shows a detailed breakdown of each monthly (or yearly) payment, including how much goes towards the principal and interest, and the remaining balance after each payment.
11. Why is it important to use a loan calculator?
Using a loan calculator helps you plan your finances by understanding your monthly repayments and the total cost of the loan, allowing you to make informed borrowing decisions.
12. Can I use the loan calculator to compare different loans?
Yes, you can use the loan calculator to compare different loan options by changing the loan amount, interest rate, and term to see how each scenario impacts your repayments.
13. What should I consider when choosing a loan term?
Consider your monthly budget, the total interest you will pay over the life of the loan, and how quickly you want to repay the loan when choosing a loan term.
14. How can the loan calculator help me with budgeting?
The loan calculator helps you understand your monthly obligations, making it easier to incorporate loan repayments into your overall budget.
15. How much can I afford to borrow?
To determine how much you can afford to borrow, use the loan calculator to input different loan amounts and terms to see what fits within your monthly budget. It is important to consider your income, existing debts, and other financial commitments.
16. What should I do if the loan calculator isn't working?
Ensure that all required fields are filled out correctly. If the problem persists, try refreshing the page or using a different browser. For further assistance, contact our support team at hello@koody.co.
17. Who can I contact for more information about my loan options?
For more detailed information and personalised advice, it is best to contact a financial adviser or the lending institution directly.