A secured loan is nothing more than a loan that is "secured" or "backed" by a borrower's collateral. This can be anything from a car to a home or even, in some cases, stock certificates. The secured loan calculator is used to determine which secured loan is right for you. This article gives step by step directions on how to use a secured loan calculator.
Tips & Warnings
Enter different amounts, terms and/or rates to find the best loan for your situation.
Use the different quotes to find the cheapest loans available.
Remember that if you do not repay a secured loan, you will lose the collateral that is "put up" to secure the loan.
Feel free to use our interactive secured loan calculator. Before deciding to apply for a loan some homeowners find it useful to understand the approximate cost of borrowing in terms of the monthly cost and the interest which is being charged. This is especially useful for homeowners who work to a monthly budget by knowing what their outgoings are such as household bills and mortgage payments versus income received.
To use the loan calculator simply enter the amount you wish to borrow and select a repayment period using the drop down menu. Then enter the interest rate and press the calculate button. The results are calculated using the generic compound interest formulae and show the monthly repayment and the monthly interest charged by the lender. For comparison purposes, which some find useful, an alternative monthly repayment figure is displayed below assuming an interest rate of 5.5% is charged.
Remember, this online calculator tool should be used as a guide only and some lenders will often build in Payment Protection Insurance or (PPI) in addition to possible secured loan application fees. Therefore, the actual monthly repayment amount in reality could be higher.
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