What Is a Good Interest Rate Calculator Program?
- Simple interest is calculated by multiplying the principal by the annual interest rate by the number of years of the loan. Compound interest is higher than simple interest because it adds accrued interest from previous months to the principal loan amount and calculates the current fee based on that figure. Daily interest rates are generally used to calculate what interest banks pay daily on accounts, such as savings accounts. An average interest rate calculator is handy when you need to decide whether you should consolidate your loans.
- Depending on the depth of knowledge you require will determine the type of interest rate calculator program you should acquire. If you only need to determine a simple interest rate once, or a compound interest rate occasionally, there are many free online calculators available for download from the Internet. Look at the features provided by each calculator for those that you need. Some will allow you to calculate the number of years required to pay off a loan, while others will help you determine the interest rate you should look for to pay off a loan in a set number of years.
- An all-around financial calculator program provides the means to not only calculate interest rates but a variety of other financial figures. Do you need to calculate cash flow, future value, present value, monthly payments, principal paid, balances on your loans or rates of return on your investments? If so, acquire a a more detailed financial program software that will meet those needs as well.