How Do I Use a Personal Loan Calculator to Estimate My Repayments?
- Harmoney
- 19 hours ago
- 2 min read
Using a personal loan calculator is the perfect first step when you're thinking about borrowing money. It's a simple, free tool that helps you understand how much you can afford to borrow, what your repayments might be, and how different loan terms can affect the total cost of the loan.
Our calculator is a great way to start budgeting and planning, and it's easy to use. Here is a simple guide on how to use it effectively.
Step-by-Step Guide to Using the Calculator
Step 1: Decide on a Loan Amount
The first thing you’ll need to do is enter the amount of money you would like to borrow. This is the "principal." You can experiment with different amounts to see how it affects your repayments.
Step 2: Choose Your Loan Term
Next, select the loan term, which is the length of time you have to repay the loan. At Harmoney, our loan terms are available for 3, 5, or 7 years.
Keep this in mind: A shorter loan term means higher regular repayments but less total interest paid over the life of the loan. A longer term means lower repayments but more interest paid overall.
Step 3: View Your Estimated Repayments
Based on the loan amount and term you've chosen, the calculator will provide you with an estimate of your repayments. It will show you a breakdown of:
Weekly, Fortnightly, and Monthly Repayments: This helps you choose the repayment frequency that best suits your pay cycle and budget.
What a Calculator Can—and Can't—Tell You
A personal loan calculator is a powerful tool for planning and budgeting. However, it's important to remember that it provides an estimate only.
What a Calculator Can Do:
Budgeting: It helps you understand if a loan fits within your current budget.
Comparison: You can easily compare the cost of different loan amounts and terms.
Planning: It gives you a clear idea of the weekly, fortnightly or monthly repayments.
What a Calculator Can't Do:
Give You a Final Rate: The interest rate used in the calculator is an estimate. Your actual rate is personalised to you based on a credit assessment.
Guarantee Approval: The calculator doesn't take your specific financial situation into account, so it can't guarantee that you will be approved for a loan.
From Calculator to Quote: The Next Step
Once you've used the calculator to find a repayment schedule that looks affordable, the next step is to get a personalised quote from us. This is where you'll find out your actual interest rate and the exact loan amount you're eligible for.
Our quote process is fast and easy and uses a "soft" credit check, which does not impact your credit score.
References:
Harmoney New Zealand Personal Loan Calculator: https://www.harmoney.co.nz/personal-loans/calculator
