Calculating Interest Rates the Easy Way

An interest rates calculator is a financial tool that can be used to figure out the interest you will spend on a loan based on the amount of the loan and the current interest rate. Some of the tools found online will also give you the annual compounded interest that can be used for the sake of comparison. A calculator of this sort can also be used when looking at investments, mortgages and credit cards, among other things.

The Internet has plenty of rate calculators on any number of websites. One of the best websites to check is Bank Rate. If you do a quick search you may be surprised at the number of rate calculators that are at your disposal.

One of the best places to look for an interest rates calculator is the website of the financial institution you bank with. Even if you are not an online banking customer your bank should still have a web presence. Many of these sites feature helpful calculators that make it possible for you to figure out an interest rate. Such a calculator can be a very beneficial instrument for you in terms of managing your finances.

Besides tools that determine rates there is also such a thing as a compound interest calculator. This calculator can be found online at any number of websites. This is the kind of calculator you should use if you plan to either lend or borrow money. The calculator allows you to figure out how much interest will accumulate or will be paid out. A similar type of calculator to this is the amortization schedule calculator which is free and can be found online.

In order to use a compound interest calculator you need to follow a few simple steps. You need some basic information to get you started. Step one is to enter into the space provided the principal which is the amount of money that has either been borrowed or lent (whatever the case may be).

Step number two is to enter the interest rate which is the annual percentage of interest. You then must move onto the third step which is to type in the duration of time for which the money will be borrowed or for which it will be lent.

You can use this tool regardless of whether you lent money to another party or are the one borrowing it. The interest rates calculator works regardless of whether you are contemplating a mortgage, are planning to buy a car or are thinking about another type of large purchase.