# How to use a payday loan calculator?

Now a handy loan calculator has been developed. With its help, you can calculate a loan from any bank in the United States and beyond. Now we will tell you how to use this financial instrument correctly and how convenient a personal loan calculator is.

## How does a payday loan calculator work?

Using a payday loan calculator, you can get all the data you need to decide whether or not a loan is right for you:

- total overpayment under the loan agreement due to the work of the payday loan calculator;
- the debt repayment date using the personal loan calculator;
- interest overpayment for using credit funds using payday loans calculator.

To start a new calculation, the user will need to fill in the loan calculator form with their own data.

### Bank selection

The personal loan calculator, like the one you can see on MoneyZap.com, the menu offers a wide variety of US and international banks. You can opt for a loan calculator for the benefit of more well-known banking organizations or smaller regional banks to calculate the loan. Once you have selected a financial institution, the payday loan calculator will automatically reconfigure. You will immediately see the loan programs available for a particular bank as well as information on interest rates, loan duration, minimum and maximum loan amounts with the loan calculator.

### Choose a loan program

The larger the banking organization, the larger its loan portfolio. Therefore, the personal loan calculator will display all possible options with a detailed description of the loan terms. You need to read the name of all the loan programs of the selected bank and choose the one that suits you (unsecured, car loan, retirement, etc.) in order to use the personal loan calculator.

### Estimated loan amount

This is perhaps the most important parameter for any borrower. The amount of the loan must be sufficient to achieve the goal (purchase of a car, residential real estate, necessary needs). At the same time, the amount of debt should not be excessive so that the monthly payments are comfortable for your budget. In a loan calculator, you can substitute any amount until you find the best one.

### Interest rate

Bank loan programs rarely have a fixed interest rate. Most often, the percentage depends on the customer’s personal data:

- the presence of a salary account in the selected bank;
- the ability to confirm official income;
- loan guarantee (collateral, guarantors, co-borrowers).

The payday loan calculator reflects the full range of interest rates available. You need to select specific numbers and calculate. This gives you several options for different situations.

### Loan duration

How long it is up to the borrower to obtain a loan. It depends on your financial capabilities and your willingness to take risks. Next to the “Loan term” column, the payday loan calculator lists the minimum and maximum values available. You just need to replace the necessary numbers in order to understand at what time you will receive the most comfortable monthly payment.

### Settlement system

With the personal loan calculator, you can choose a settlement system with a bank:

#### Annuity

The total debt and accrued interest for the entire term of the loan are added together and then divided by the total number of months. With this system, the payment remains unchanged until the end of the loan contract.

#### Differentiated

A more complex calculation system in which interest is not charged immediately on the total amount of debt but only on the balance. That is to say, with each month paid, the amount of the payment gradually decreases. After entering all the data in the personal loan calculator, you just need to click on the “Calculate” button and get the result in a few seconds.

## Benefits of a Payday Loan Calculator

Imagine being trapped in a $25,000 pit of credit card debt without a formal understanding of how interest rates work. You may encounter minimum monthly bills in excess of a few hundred dollars. Most people care about their credit score and you are one of them. But you find yourself in a situation where you can no longer cope with the growing minimum monthly payment and run the risk of hitting your credit history due to missed payments. Worse still, you may be flagged as overdue and have just received a final notice to make a payment or refer your debt for collection.

Remember: you are missing a formal understanding of how interest rates work for this thinking exercise. So if you take $300 and don’t pay that $300 at the end of the month, that adds 23.99% to that. So you always pay more than if you had to take out a personal loan, for example.

For about half, the credit card interest rate is about 23.99%. However, this interest rate is expressed as an annual interest rate. This means that the monthly interest rate is around 2%.

However, if you think that 23.99% will be added to your debt at the end of each month, it is completely understandable that you consider a commission of $15 for every $100 borrowed as 15% per year. So, you are trying to pay off credit card debt with a payday loan. Therefore, before applying for a payday loan, you need to know some things and learn how to use a payday loan calculator.

## The payday loan calculator is a useful tool for borrowers

The online payday loan calculator is designed to help you determine what loan amount is best for you and for what repayment period. By checking the annual interest rate of the amount you intend to borrow, you will be convinced that this is the right solution to your financial problems.

They have developed a tool for small dollar loans, up to $1000. Also, the maturity period should not exceed one month if you want to calculate the exact annual interest rate. Besides whole numbers, a payday loan calculator also allows you to insert decimal numbers without using commas or currency signs.

In general, it will not take you more than a minute to verify your bets. There are only three values you need to add to find your interest rate. Once you calculate the APR, you immediately know if you are dealing with a loan shark. In addition, you can use the online personal loan calculator an unlimited number of times by clicking on the “clear values” button.

Note that the values of all segments must be positive. For example, if you want to borrow €300 with a commission of €45 over 15 days, the tool will calculate an annual interest rate of 365%.

Once you know the numbers, you can choose the loan term that’s right for you. A payday loan calculator will show you exactly how much you will pay and what the total financial costs will be. If the APR offer suits your financial plans, you will need to complete the online application form on the site of any lender offering a payday loan calculator. You can then check to see if you received approval without affecting your credit rating. Once you submit your official application, they will send your details to the network of trusted payday lenders. Once you have selected the loan that suits you best, the lender will deposit funds into your account.