# Payments Calculator

Use the payments calculator to calculate how many payments are required to repay a fixed amount of money, a mortgage for example. The Payments calculator returns the number of payments remaining.

 Present Value: Future Value (0 to pay off debt): Annual Interest Rate: Repayment Amount: Payment Frequency: MonthlyQuarterly6 MonthlyYearly Numbers of payments required:

## Calculation of Repayment Period - Payback period of your borrowings

Borrowing money when needed is never easy. Perhaps the process of borrowing has become relatively easier than before with the latest technologies in picture. However, we still face challenges when deciding on repayments.

The term "Repayment" is used to define the act of paying back the money that was borrowed from a lender. These payments are generally made on a monthly basis when borrowed from the banks; could be quarterly, semiannually or yearly in case of some private lenders.

Repayment amount generally consists of interest and principal and is paid periodically as per the selected term. Common type of loans that the majority of us use are: mortgages, personal loans, auto loans, payday loans, education loans all require repayments. Often credit card charges are also converted into smaller repayments rather than paying lump sum amount of total usage.

## Payments Calculator Make your Repayment Calculations Easier

A payment calculator is an online tool designed to do the calculations of the repayment period in the simplest way possible. In order to use the iCalculator's payment calculator, you will need to fill the following details in the respective field.

• Present value - This represents the value of total borrowed or yet to be borrowed amount.
• Future value - Here, you enter a value if you want to know the repayment period before a certain amount is left to be paid. For instance, if you are borrowing total amount of 50,000, but you are planning to repay 10,000 as a lump sum before the end of repayment, you may enter 10,000 amount in the future value column to get the repayment period for the remaining amount.Note: This is to be entered as a 0 if you want to calculate the repayment period for the entire amount.
• Annual Interest Rate - This column refers to the flat interest rate that has been offered to you for the entire term of the loan.
• Repayment Amount - Repayment amount or EMI (Equated Monthly Installment) amount is the amount that you will be paying on a monthly basis for the loan in question.
• Payment frequency - Here, you may select the monthly, quarterly, semi annually or annually. This depends on the type of term you select.
• After entering the above mentioned numbers you will get the Number of Payments and Repayment Period (years and months).

### The Benefits of Calculating Payments

• Save time and money. you just need to input the numbers into the calculator and you will have instant results.
• Reduces the risk of getting a bad deal, you can check and compare among all those banks with just a few clicks and entries on the calculator, it is as simple as that.
• The calculator will help you decide the actual amount you should take, as per the repayment amount you can afford.
• Since the calculator provides a precise calculation it can save you from any potential irregular repayments too.

## Things to be considered before taking a loan

To take any kind of loans there are a bunch of things that you should consider before signing any permanent contract. Some of the most important factors that can have an impact on your repayment are listed below:

### How much repayment amount (or EMI) can you afford?

Other than accommodation and food, there are many things like transportation, cost of your kids' education, expenses of other daily necessities. Before taking any loan, you must consider all the aspects and decide how much percentage of our income can you actually afford to part with for repaying your borrowings.

### Shop around and compare

In recent years, borrowing has become quite expensive. However, there is also competition in the market. It is always advisable to check with different banks/ NBFCs and compare the repayment options they are offering.

### Keep repayment period as short as possible

It could be quite tempting to opt for a longer tenure since it shows the small repayment amount. You should be aware that the longer the tenure the more interest you will pay. If a 5 years loan is costing you 55%, the total interest will shoot up to 110% if opted for 10 years term.

### Inquire about prepayment

Though it may seem unlikely at the time of taking loan, but it is quite possible that you might be able to prepay the loan. Almost every bank applies charges on the prepayments. It is always a good idea to know it beforehand and ask for a deal with least or without prepayment charges.

### Purpose of borrowing

The purpose of borrowing is the most basic factor to be considered before borrowing. In other words, borrow only if you can't do without it. Also, It is never advisable to borrow money for investment purposes. Safe investments like FDs would not be able to match the interest rates. Other investments that offer high returns come with a high risk.