What Can You Do With A Finance Calculator?
Doug Smith

Defined Tag: Finance Calculator.

A finance calculator is not a pocket computer you buy, although there are some such calculators that provide financial functions. Instead, a financial calculator is an online web page that you visit. The page has been programmed to calculate one of many different types of financial functions. Few people know or remember how to calculate compound interest, the present value of a future investment, or the future value of a present investment. These helpful web programs can be found by looking at your bank or credit union's website. You can also use any search engine to look for terms such as "loan calculator" or "debt calculator."

The goal of an online economic calculator is to make it as easy as possible for you to use. The page will consist of a form with several input boxes on it, and some instructions. All the user has to do is input the required values, then click a Submit or Calculate button. The answer will appear instantly right there on the web page. These money calculation pages are safe and private, because the website owner has no way of knowing your name or address when you visit online.

One of the most typical types is the loan or mortgage calculator. Assume you want to buy a home, but don't know how much you can afford to pay monthly. Enter the value of the house, the interest rate of the loan, the down payment (if any), the length of the mortgage, and click the button. The program calculates how much per month you would have to pay in order to buy a house of that value, at that interest rate, down payment, and at that loan term. If the monthly payment is more than you can afford, you can do "what if" calculations. Adjust the home value, interest rate, and payment period until you find a combination that you can financially afford. You could run through several different iterations of calculations in just a few minutes. Doing all this calculating manually would involve, a pencil, a big eraser, a calculator, and a couple of aspirin.

Another popular online calculator is for credit card debt repayment. You can enter the balances you owe on your credit cards, the interest rates for those cards, and the monthly payments you are making now. The program would calculate how many years it would take for you to repay your debts fully at that rate. Some of these credit calculators will ask you how quickly you want to repay that debt, and then figure out how much you would have to pay each month to repay all cards in that time period. You can also find calculators for retirement investment, college funds, mutual funds, and even car loans.

These free web pages will calculate just about any money-related quantity that you need. It is almost like having a financial expert sitting next to you. You should bookmark each finance calculator that you find so that you can use it the next time you need financial math help.

Copyright 2008 by Doug Smith. All Rights Reserved Worldwide. Unauthorized Duplication Prohibited. Not Intended As Professional Advice.