Flat Rate Loan Formula: Total Cost = (Annual Interest Rate/100 x Loan Amount x Loan Length) + Loan Amount
Monthly Cost = Total Cost/Number of Months
Flat Rate Loan Definition At one time or another, almost everyone finds themselves in a position that necessitates the borrowing of money. Whether it’s to start a new business, buy a home, or any other endeavor, the decision to take out a loan should never be made lightly. With all the myriad choices in loan types, one might be left scratching their head, wondering what to do, and most importantly, what it will end up costing them. Perhaps the best type of loan a person can hope to be given is the flat rate loan.
Keeping it Simple Unlike some other financial instruments which might leave you confused (and with a much lighter wallet!), a flat rate loan is exactly what it sounds like: You’re loaned a certain amount of money or other capital, and in return, you promise to repay it, along with a flat, unchanging rate of interest, which gets tacked on by the lender (it’s how they make their money and can afford to lend to begin with). The thing is, even with such simple terms, some people are still cautious, unsure of what the final cost of their desired loan will be, how long they’ll need to pay it all back, and so on. With that in mind, we’ve created this handy flat rate loan calculator. Now you’ll never have to wonder what your monthly payments will be, or how much you’ll really be paying for the privilege of taking out a loan.
Easy Calculation Using the flat rate loan calculator couldn’t be easier! All you need to do is enter the amount of your loan, the number of years you have to pay it back (the calculator must be given a minimum of one year), and the annual interest rate. Once you’ve put those values into the fields provided, the calculator will generate a report which will show you your projected final cost, as well as your projected monthly payment. You can then print it all out and keep it for your records, show it to your lender as proof of terms, or do anything else you choose to do with it. One word of advice: This financial calculator is designed as a tool, not financial advice! For that, you should seek the counsel of a trusted financial advisor and / or an attorney, as well as the advice and input of your lender(s). Happy spending!
How to Calculate Flat Rate Loan Let's be honest - sometimes the best flat rate loan calculator is the one that is easy to use and doesn't require us to even know what the flat rate loan formula is in the first place! But if you want to know the exact formula for calculating flat rate loan then please check out the "Formula" box above.