A lot of math is involved whenever there is a discussion about financing. It could be a personal loan, a car loan, or a mortgage. While you get all detail in print about the rates and the amounts that you could receive, there are some minor details which are indispensable. As you go through websites comparing rates, the last thing you want to do is to have a pen and a numerical calculator trying to formulate the interest rates and the payment amounts. Instead, there have been created finance rate calculators that do the entire math for you. All that is needed of you is filling in of the figures that represent things such as the loan amount and the repayment period and you get the rate.
Though the whole process appears simplistic, there are many calculations consolidated into a simple formula. Now in the natural, with some knowledge in Algebra, you could do the math yourself. But being human, one is subject to making formula errors or numerical ones. Besides, unless one majored in finance or economics in the university, the usual response to doing the calculation is usually a turndown. Thus the finance rate calculators have eased the whole process, and helped saved a lot of time as well.
With a finance rate calculator, you can do the math for annual percentage rates (APR), monthly percentage rates, including the monthly installments and repayment period, and the total amount that you will have paid at the end of said period. The calculations are really fast and occur in a short couple of seconds, regardless of the type of calculator in question.
Because of the popularity of these finance rate calculators, most lenders offer them on their websites. Some go the extra mile of offering them for download. This is to enable you to do as many subsequent calculations as you like when you log off the internet, until you narrow in on the one that equates to the kind of rates that you would prefer. The main reason behind developing of these calculators is to enable comparisons to be much faster. Since all you do is key in the numbers as specified by the lenders and observe the differences.
Finance rate calculators are almost always free, so paying for one is really impractical, all factors considered. They are user friendly since the instructions for use are forward and direct.