It would be really unwise to choose a loan without probing other loan options available in the market. Using ACalculator, you can compare three loan options at a time. These critical calculations can’t be done by you just by focusing on the basic monthly payments of the loans. By considering interest rate, term length, payment type and other information, this calculator will give you a more comprehensive result so that you can easily find out the appropriate one for you.
- Loan amount
- The amount of money for this loan option. You need to enter the different amounts to get a better idea for the Loan Comparison
- Interest rate
- The annual rate of interest on this particular loan.
- Loan term
- The required duration to completely pay off the loan amount.
- The amount of money paid as any kind of fees including prepaid interest. These fees are integrated in the calculation of Annual Percentage Rate (APR)
- Annual percentage rate (APR)
- The Annual Percentage Rate (APR) translates different fees and charges of different loan options into a single and standard rate. So, you can judge and match up to whatever number of loan options you have with the same standard. No matter if there are higher rates but lower fees or lower rates but higher fees, they will all be integrated in common measurements.
- Payment type
- This is the number of payments you make every year indicated as weekly (exactly 52 payments), accelerated weekly (assuming 4 weeks in a month but 1 additional payments in year), bi-weekly (exactly 26 payments), accelerated bi-weekly (assuming 26 bi-weekly payments and 1 additional monthly equivalent payment), monthly (exactly 12 payments), and semi-monthly (exactly 6 payments). This is the frequency of payments to completely repay the loan amount.
- Equivalent monthly payment
- The paid amount of money converted in monthly equivalent. Other than monthly payment type, this is derived by dividing the total payments in year by 12.