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A personal loan calculator allows you to calculate the monthly payment. You need to supply information, such as the principal amount, interest rate percent, and the term of the loan to use the tool. The result displays an estimate of the amount you need to pay each month towards repayment of the loan. The result may also include the complete amortization schedule showing you, in a tabular form, the outstanding balance after each successive payment. With the amortization table, you can easily see how far or close you are from the final payment. This is a great help in planning a future expenditure.
Some banks and credit lending agencies offer another kind of personal loan calculator that allows you to know how much you can borrow from them. This is a different kind of tool that may ask a little more information about your financial condition to calculate an approximation. This tool is particularly useful when you are applying for a secured loan as the value of the collateral you are pledging is assessed to determine the maximum loan amount you may be eligible for.
There is yet another kind of calculator that helps you know how soon you would be able to pay off if you are making extra payments. You must note that there is no prepayment penalty for personal loans offered by most lenders in the US. As a result, you are free to pay whatever extra amount you are comfortable with, either regularly along with your monthly payment or as a one-time payment. This will help you clear the debt earlier than the scheduled date.
All the above mentioned calculators are available online for use, particularly at websites of the lenders who offer personal loans. Please note the results generated by these tools are for illustrative purposes only. You must talk to the lender concerned to get the final rate and calculate the amount to be paid monthly. Apart from these tools, you can also use formula in Microsoft Excel or any other spreadsheet software to create your own personal loan calculator. This will allow you to calculate the monthly payment as well as generate the complete amortization schedule.