# Calculate credit online

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If you need a loan, you have many choices to make: how much money do you need? Which monthly installments can you afford? What suggestion about monthly installments does the bank accept? How high are the interest rates? Most people are currently turning to such loans online.

## Calculating a loan online: The necessary tool

To calculate a loan online, many sites provide a so-called loan calculator available. This is a tool that comes either from an independent provider and is used to compare loans through various calculations, or a program that comes from a bank and is fed with the basic information for a particular loan. This system is about comparing different maturities and loan sums of a loan model to find out what conditions are best for you.

## Calculate a loan online: Determine the rate requirement

The nuts and bolts, if you want to calculate a loan online, is to determine which is the appropriate rate that you can repay monthly. The calculation itself is relatively simple: you divide the total loan amount by the number of months the loan should run. The loan calculator is needed at this moment only because the interest burden is added and the rate influenced. Much more interesting is that you have to come at a rate that the bank also accepts. The fact that the proposed rate does not get too low is due to the fact that there is a maximum repayment term (usually seven to eight years). This is usually not the problem. Very often people suggest rates that are clearly too high: The background is simple: the more you pay off, the faster you have the loan completely redeemed. However, many people tend to take over, which can jeopardize the entire repayment. The bank generally accepts 10 percent of the net monthly income without complaint. It is likely that the financial institution will accept the rate up to 20 percent – but only more so if the loan is secured differently, such as by a guarantor.

## Calculate a loan online: Calculate the interest

The biggest mathematical difficulty is calculating the interest on a loan. As a rule, they are estimated annually and increase the loan amount (or the repayment amount accordingly every twelve months). The key question is whether there is compound interest or the burden is based only on the original loan amount. Due to the additional complexity of tied borrowing rate and APR, this topic becomes so complex that the borrower should definitely rely on the bank’s loan calculator on the loan model to calculate the interest rate. Interest rates also ask questions about whether there is an interest rate guarantee.