This kind of loan construction is called an amortized loan. In most cases the borrowed money is refunded in loan payments (installments) in equal amounts through the payment term. Loan payment: this is the amount of money which is required to be repaid by the borrower for every payment period. For example, in the case of a monthly payment with a 6% annual rate, the periodic interest rate is equal to 6% / 12 = 0.5%. To get the periodic interest rate, you need to divide the annual rate by the number of payments in a year. For example, a bank might charge 2% per month on its credit card loans, or it might charge 1% quarterly on loans. It can be annual (in this case, it equals the annual rate), semiannual, per quarter, per month, per day, or per any other time interval. Periodic rate: this is the interest rate charged by a lender or paid by a borrower in each payment period. Payment period: it refers to the specific period over which the borrower is obliged to make the loan payments. For example, a 20-year fixed-rate mortgage has a term of 20 years mortgage calculator. Payment term: in our context, refers to the time frame the loan will last if you only make the required minimum payments each month. To learn more about inflation, visit our inflation calculator. It is also important to take into account the expected inflation rate when you inspect a quoted rate: the higher the inflation rate, the lower the real interest rate thus, the real burden generated by the interest rate lessens. If you would like to learn more about calculating interest, visit our simple interest calculator.Īnnual rate: this is the interest rate (also called nominal rate or quoted rate) that is quoted by banks (or other parties). In other words, this is the amount that the borrower agrees to pay the lender when the loan becomes due, not including interest. Loan amount: this is the amount of money (also known as the principal) that a bank (or any other financial institution) lends or, conversely, that an individual borrows. In the following, you can get familiar with these phrases so you will have more of an understanding of the concept of loans. If the term of your boat is 10 years, you can use our tool as a 10 year boat loan calculator to calculate a boat loan with a 10 year term.Before we go any further, it is essential to discuss a few specific terms you may encounter when you are considering taking a loan. You will also get a summary of the total interest paid, and the total payment when your loan matures. The boat loan calculator with amortization will show you exactly how much interest and principal are paid each month and the remaining balance. Our boat loan calculator requires only three fields, loan amount, terms, and interest rate to determine how much you will be paying monthly, and how long it will take to pay off the loan for your boat. You want to make sure if you have the budget for the boat, and if you are able to meet the monthly payments. How to use our boat loan calculator?īefore you apply for a boat loan, you may want to use our boat loan calculator to estimate how much you will need to pay a month. You may want to do some market research and comparison to see which lender offers the best terms for your boat. There are many ways that you can get a boat loan, such as banks, online lenders, and credit unions. To offset the lender's risk on the loan, lenders generally charge a high interest rate for an unsecured boat loan. However, you will end up paying more on interest payment, because an unsecured loan is riskier for the lender in case you default. Unsecured Boat LoanĪn unsecured boat loan is a loan that is not backed by any asset. In the case of a boat loan, you use your boat as the collateral. A secured boat loan is similar to an auto loan where you use your car as collateral, and the lender will take your car if you stop making payments. If you fail to make payments, the lender will take your assets as a form of payment. There are some differences from a house mortgage as the loan term for a boat is much shorter, usually from a few years up to 15 years.Ī boat loan can be both secured and unsecured.Ī secured boat loan is that you have some assets to back the loan as collateral. With that calculator, not only will you get many more options, but you will be able to print or save the result in pdf.Ī boat loan is similar to a traditional mortgage on a house or an auto loan as it is an installment loan with fixed monthly payments. If you need to include more options such as tax and insurance, or other fees, please use the advanced mortgage calculator. The boat financing calculator amortization has the option to show the amortization schedule by year and month.
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