Compare 2 Loans Online Lending Analysis Calculator
  AJ Design Software

Compare Two Loans Calculator

Financial Lending Analysis Tool

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Description:
Financial calculator for comparing or analyzing two loans or mortgages. The calculator is for fixed rate loans based. Typically fixed rate loans are used to purchase or buy cars, trucks, automobiles, recreational vehicles and homes using fixed rate mortgages. This calculator should not be used for Adjustable Rate Mortgage (ARM), revolving lines of credit or credit card calculations, since payment are not fixed or equal month to month.

Analysis includes monthly and total payment, interest and principal paid, balance versus time and amortization table calculations. The tool give visual representation of the data using charts, graphs, plots and tables.


Instructions:
Step
Instructions
Notes
1
Enter loan amounts.
The loan amount is the total amount of money being loaned from the bank, mortgage company, lender or other financial institution.
2
Enter interest rate.
Interest rate is the lending rate the bank is charging for the loan. Enter the value as a percent. Typically, loans with longer terms have a higher rate and shorter term loans have a lower rate. Moreover, a person with good credit will qualify for a lower interest rate as opposed to a person with bad credit. Tip, a person should shop around for the best deal. In many cases, mortgage rates can be negotiated.
3
Enter the term
Term is the number of years it will take to repay or payoff the loan. It is the duration or length of time payments will be sent to the lender. Note, this calculator assumes payments are made on a monthly basis.
4
Press Calculate button
The calculate button will update the solution, charts, graphs, plots and tables.


Explanation for Solution, Charts Graphs and Tables:
Location
Parameter
Explanation
Solution
Term
The program calculates the number of months payments will be sent to the lender. It is the number payments. Note, one year has twelve months.
Solution
Monthly payment
The amount of money to be paid to the lender each month.
Solution
Total payments
The total amount of money paid during the lifetime of the loan. It is calculated by multiplying the term or number payments by the monthly payment. Total payments in total amount of interest and principal paid.
Solution
Total interest paid
The total amount of money paid to the lender for loaning the money over the lifetime of the loan.
Solution
Loan amount
User input of the amount of money being borrowed.
Solution
Total interest paid
User input of the interest rate.
Bar charts
Monthly payment
Provides a visual representation of the monthly payment for loan 1 and loan 2.
Bar charts
Total paid
Provides a visual representation of the total paid amounts for the loans.
Bar charts
Total interest paid
Provides a visual representation of the total interest paid for each of the loans.
Graphs
Loan Balance vs. Time
A graph showing the loan balances over time. The lines show how much cash is still owed as payments are made over time.
Graphs
Interest and Principal versus Time
A graph showing the amount of money being applied to interest and principal for each payment. Principal reduces the loan amount. Interest goes the the lender. Note, the amount on interest per payment get lower over time.
Tables
Amortization tables
A numeric table showing how each monthly payment is divided into interest and principal. In addition, it shows the monthly payment (same for each month) and loan balance for each month.