Interests, commissions, linked products, notary expenses, the associated account fee … A loan can have so many associated expenses in addition to the interest that it can become complicated to know the total cost of the financing that we want to hire. Although all the linked expenses and the total cost of credit must be specified in the contract, using the loan simulators before deciding on one type of credit or another can help us to save and know how we will have to face the payments of the financing that let’s hire
What is a loan calculator for?
Although two loans seem similar to the naked eye, we must take into account many factors in order to know how much the loan will cost us in total . According to the variables of the amount and the term in which we want to reimburse it, with a credit calculator we can know what the total cost of the loan will be according to whether or not it has commissions, the monthly payment to be paid or the costs related to the linked products. In addition, it allows us to perform several simulations , so it will be useful to calculate what the costs will be according to the different variables.
Normally, loan simulators can be found on the websites of the lenders who offer their loans online and they usually have all the data included so that we simply have to change the amount or the term. Other entities also offer this financing calculator service where we can compare different offers in the same loan simulator, such as the free calculator of HelpMyCash.com , with which we can know not only the cost of the financing we want to obtain but also other offers of the same characteristics with better conditions and a cheaper cost.
To be able to use it simply we must introduce the entity where we will request the credit, the capital, the interest rate (TIN), the term and any other expenditure of commissions that the entity may have. Once these fields are filled out, we will send a personalized report so that you can assess whether you are interested in the offer or not.
Simulating the cost of financing helps us save costs
Even in the same personal loan offer , the variables we choose can make us pay more or less for the requested capital. The term , although it seems an unimportant factor, is one of the variables that most affects the cost since the longer the term, and the lower the monthly payments, the more interest will be generated. That is why using loan simulators can help us choose the best term for us and, thus, save. To see it more clearly we can see in the following table how much we will have to pay in total in a loan with the same characteristics by simply changing the term.
|€ 8,000||8%||18 months||€ 473||€ 8,516|
|€ 8,000||8%||24 months||€ 362||€ 8,683|
|€ 8,000||8%||36 months||€ 250||€ 9,024|
As we can see, the difference between the credit with the shortest term and the longest with € 500. By performing a simulation with different deadlines we can choose the quota that best suits us to pay less. The key to choosing the appropriate term is to seek a refund as high as possible to shorten the maximum repayment time, but without it being too high for the fact of returning the credit unbalance our personal finances.