Loan Calculator

Whether it is a new boat or used one, or for personal or business purposes, a boat loan can do a lot of good. It allows you to make the necessary purchases while avoiding the financial strain of a personal lump sum payment. However, finding the perfect loan can be quite challenging. That’s where a loan calculator comes in.

A loan calculator allows you to decide whether or not a loan is affordable. You can use it to calculate the monthly payment structure that fits into your budget when you try to rely on a financing option for your purchase.

A loan calculator works relatively easy. It helps you calculate the amount you will be obligated to pay monthly based on the loan price and other repayment factors. This way, you can determine the suitability of a finance option before you agree.

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How Does It Work?

To use a loan calculator, all you need to do is enter the amount you require from the financing option. That is the cost of your boat.

Afterwards, input the interest rate. This is the amount charged per annum for the loan by the lender. This rate is not fixed and will depend on the type of financing option you have chosen to purchase the boat.

Then, enter the number of years in which you intend to repay the loan sum and the interest.

Once you do this, it will present your monthly obligation in the discharge of the loan throughout the loan. For instance, if you had chosen five years, it will calculate how much you need to pay each month over five years to discharge the loan obligation.

Now, you can quickly fit this monthly amount into your budget and determine whether or not you can afford it. The great thing about a loan calculator is that you can adjust the details to find a repayment plan that suits you.

For instance, if the period of five years turned out to be too expensive, you can extend the repayment term to six or seven years. This way, you can reduce your monthly obligation and provide more financial stability to yourself.

Check Out Our Loan Calculator

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Helpful Phrases and Terms

Here is a list of popular terms concerning boat loans and their meanings

  • Monthly payment: the amount you will need to pay every month to repay the loan
  • Number of years:the duration it will take you to repay the loan
  • Interest rate:the percentage of the loan sum you will need to pay as a price for the loan
  • Total purchase cost:this is the total amount that you will pay to make the purchase, that is cost price plus interest
  • Down payment:the amount you will be required to pay as a deposit for the loan. It is usually from your pocket and range between 10 and 30 per cent of the purchase cost.
  • Trade allowance: the amount you receive for any boat that you add to the loan arrangement