A personal loan calculator will help you understand the cost estimate of borrowing money before agreeing on the terms.
What do banks sell? Interests on loans – any type of loan.
Use our free personal loan calculator to see how much loan you qualify for, assuming you know your credit score rate or average interest charged on your loans.
Crunch the Numbers!
Our free loan calculator tool lets you understand the loan costs before agreeing to terms.
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How to Calculate Loan Interest
Want to know how the loan interest rate is calculated, here’s a simple formula to use:
- Amount x Int (%) x Term (Years) = Total interest
- R20,000 x .95 x 5 = R5,202.23 in interest
This formula and the above-listed calculated do not take into consideration other costs involved in borrowing money such as initiation and admin fees.
What Affects How Interest Is Calculated?
A couple of factors are going to impact how your personal loan interest is calculated.
Loan amount: The amount of money you would like to borrow. It affects how your interest rate is calculated because the higher the loan amount, the higher the interest will be charged.
Loan terms: The period you’re planning to repay the loan amount. A very significant factor when borrowing money because this will eventually determine your personalized interest rate for the loan.
Credit score: The main factor, refers to the interest in taking the credit. How well you’ve been handling your other debt will play a huge role in the trustworthiness of your profile and how much the lender will offer for interest.
Get the Best Loan Interest
It’s the numbers game. To get the best and low-interest rate, you must work on improving your credit score.
Pay your bills on time, take loans for shorter terms, and ensure your debt is not higher than your expenses and most importantly, income.
Other Loan Calculators
To get a closer estimate of how much a loan is going to cost you, use these lenders’ calculators that include more fee structures.
- African Bank Loan Calculator
- WesBank Personal Loan Calculator
- Absa Personal Loan Calculator
- Standard Bank Personal Loan Calculator
- Old Mutual Personal Loan Calculator
- DirectAxis Personal Loan Calculator
- Sanlam Personal Loan Calculator
Try them and choose the one that satisfies your requirements or offers a detailed breakdown of the costs. Otherwise, call the bank to find out how much you qualify for and at what interest rate.