Installment loans are a type of loan that you can pay back in an installment basis over a certain period of time. Your monthly payment would depend on many factors, including your terms and conditions, the amount you borrowed and the interest rate.
To manually calculate the monthly payment for your installment loans, do the following:
1. See your loan contract. It is here that you will find most of the information that you need in order to correctly calculate installment loans’ monthly payment. Check the interest rate included in your signed agreement as well as the principal loan amount and the number of payments that your installment loans require.
2. You will need to do some arithmetic in order to calculate the installment loans right. Calculate your monthly interest rate by dividing the APR by 12 (12 months). In the event of online installment loans, you will need to divide the total interest rate by the number of payments that you are required – these pieces of information should be accessible from the paperwork that you have signed. Now remember that online lenders have a shorter loan term compared to the traditional finance companies so you would need to adjust this step of the process accordingly.
Then divide the total principle amount by the number of installments required. Once you get the answer, you can add the interest rate to the monthly installment loans amount.
The Other Alternative
If you do not want to go through this complex calculation for the monthly payments of your installment loans, you can take advantage of loan calculators that may be available on your lender’s website. If a loan calculator is not available on site, there are many similar loan calculators that you can have access to for free.
If both the long hand method is not your option and the loan calculator is not available, you can also use similar software programs. An example would be the excel spreadsheet with its AutoSum functions. Such a program will act as the loan calculator that would supply you with your needed information.
Your lender must also have customer support professionals who can walk you through the process of securing installment loans. These specialists should not only inform you of your credibility for application regardless of your bad credit, the needed documents, the expected waiting time and the total cost of loan; they should also be able to inform you of the amount of the monthly installment loans.
Installment loans don’t have to surprise you every month. The best thing about these types of loans is that they have a fixed monthly installment on top of the no credit check deal. So you should not be expecting any changes from the first month in your contract to the last. You just need to prepare yourself on the cost of the installment loans for the first time and the rest of your transaction should go smoothly.