Home Improvement Loan Calculator To Figure Out Loan Payments

Using a home improvement loan calculator, you can calculate your monthly payment for a home improvement loan using this important tool.

home improvement loan calculator

Do you need a home improvement loan calculator to determine the monthly payment for a home improvement loan? If you are creating a budget for the project you are considering, it is critical that you find the monthly cost for the loan and factor that into your monthly expenses. It is very easy, fortunately, to use a home improvement loan calculator to find the costs.

To use a home improvement loan calculator, you will need to know three things: the loan amount, the interest rate that the bank will charge and the loan term. The loan amount is how much you will need to borrow. Sometimes that is 100% of the project cost; sometimes you will have saved some of the cost and you only need to borrow some of it. The interest rate generally is found from the website of the lender. If not, contact the lender and ask for the prevailing interest rate for the type of loan you intend to use. The loan term is how long it will take you to repay the borrowed amount. Five, ten or 15 years are common loan terms. An example of this is that if you need to borrow $25,000 at 7% for 10 years, a home improvement loan calculator will calculate your monthly payment to be $290.27.

There are many sites on the Internet that have a home improvement loan calculator for you to use. Many bank lenders have a Home improvement loan calculator on their site. Simply run a Google search using the keywords "home improvement loan calculator" and a number of sites will show up. If you have a Gmail account, you can add a home improvement loan calculator to your iGoogle homepage by searching for home improvement loan calculator.

You can enter the required information into the Home improvement loan calculator using different interest rates and different loan terms to find the range of possible monthly costs that you will need to add to your budget. The best use of a home improvement loan calculator is to find that range of potential costs so that you can make absolutely certain that you are going to be able to repay the loan.

If you are handy with Microsoft Excel, or one of the other spreadsheet programs, you can create your own home improvement loan calculator using the function PMT and entering the three pieces of data. Keep in mind that the loan term in Excel is in months (number of payments), not years, and that the interest rate must be for a month as well (annual interest rate divided by 12).

Whichever method you use, the important fact is that you need to use a home improvement loan calculator to determine the complete costs of your project. Using a home improvement loan calculator allows you to modify the size of the project, the amount that you need to borrow and search or an interest rate that your home improvement loan calculator shows you can afford.