Match your personal loan to your budget with a loan repayment calculator
Using a loan calculator or a repayment calculator can help you work out the cost of a personal loan. When considered carefully and set-up to suit your circumstances, a personal loan can be a great way to meet your financial needs. Personal loans work in a wide variety of circumstances and a loan calculator can help you identify the savings as well as the costs.
Personal loans for unplanned expenses
A personal loan can help you deal with surprise expenses. It’s not uncommon to be faced with a cost that you hadn’t planned for, or to find that you need to spend money that you don’t have access to.
This could be for a range of reasons: maybe your car has developed a major problem; or you have a house repair that needs immediate attention; perhaps there’s an opportunity to make a purchase that you hadn’t planned for; or take a trip that you haven’t saved for in advance.
It’s always better to have money saved for unexpected costs, but unfortunately that’s not always possible. A personal loan can provide access to the cash that you need now. Using a personal loan calculator can help you understand the benefits of faster repayment or a longer loan term.
Using our personal loan calculator for unplanned expenses
While the actual interest rate and amount you can borrow will be determined when you speak to your finance provider, using an online personal loan calculator will help you understand what your repayments levels would be at different borrowing levels, terms and interest rates. It’s a good way to assess your borrowing needs against your budget, as well as learning how the different factors (term, rate and amount) work together.
Would you like to use our repayment calculator to find out your interest costs too?
If you want to calculate your interest costs, multiply the monthly repayment by the number of months in the loan term. Subtracting the original debt from the total will show you the cost of interest and fees. The repayment calculator makes it easy to see that you can save interest by reducing the term of the loan or negotiating a lower interest rate, or of course, by borrowing a little less.
Personal loans for debt consolidation
If you’ve experienced unexpected costs in the past, you may have used a range of finance options to cover your expenses. These could include credit cards, overdraft facilities, or even personal loans.
Consolidating your debt can be an effective way to stay in control of your finances. Bringing all the money you owe into one personal loan means you have visibility of exactly how much you owe and how much you have to repay. You can set up repayments to work within your budget and move from juggling your debt to getting rid of it.
Using our personal loan calculator for debt consolidation
Bringing all of your debt into one personal loan can make it easier to manage. You can calculate your repayments using our repayment calculator for debt consolidation. This allows you to work out what your monthly repayments would be for all of your debt, based on your proposed length of loan.
Total up the full amount of debt you have across all the finance facilities you use. It’s a good idea to find out what your current balances are, including any fees you may have to pay to pay off your outstanding balances early.
When using the personal loan calculator provided by AA Finance, enter the amount you would like to borrow, followed by an estimated interest rate and loan term. Remember, aside from the convenience of having all debt in one loan (with one monthly repayment amount to think about), the major benefit of looking at debt consolidation is finding an option to reduce the cost of your debt, and ideally, the time it will take you to pay it off. When using the calculator to assess repayments it might be tempting to lengthen the term of the loan, but always remember that the longer you have debt, the more you pay for it.
Next steps for applying for a personal loan
Using a loan repayment calculator is a good way to work out the cost of repaying a personal loan. Take time upfront to build a clear budget that includes your monthly costs and income, and you will be able to understand the size of loan you can afford and how long it might take you to pay off.
Now that you’ve made some estimates, give the team at AA Finance a call. We can help you structure your personal loan in a way that works for you - including any repayment flexibility and finding the right interest rate. Call AA Finance today on 0800 600 888 and enjoy the benefits of great service, flexibility and a quick application.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure the content is correct, the information provided is subject to continuous change. Please use your discretion and seek independent guidance before making any decisions based on the information provided in this article.