How to Use a Secured Loan Calculator

A secured loan is a loan that is "secured" or "backed" by a borrower's collateral. The collateral can be anything from a car to a home. It will be forfeited to the lender if the borrower does not repay the loan. A secured loan calculator can help you estimate your interest and the monthly cost of the secured loan.

Difficulty:

Easy

Instructions

Things You'll Need

• Internet access
• Online calculator
• Amount of Loan
• Term of Loan
• Interest Rate

1. Find a secured loan calculator online. Use your favorite search engine and search for "secured loan calculator." Pick the one you are most comfortable with.

2. Enter the loan amount that you want to borrow. Do not add a dollar sign.

3. Input the terms of the desired loan. Usually, you will have to pay off a secured loan in monthly installments.

4. Add the interest rate. The interest rate for a secured loan is usually much lower than the rate for a non-secured loan, but your credit score and history will determine the interest rate.

5. Click on the "Calculate" button. This will give you your estimated monthly payment and may be divided into amounts such as interest paid, cumulative payments and principal remaining.

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.

References

• Calculator Site: Loan Repayment Calculator