Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

Laser Focus World Membership

Never miss any articles, videos, podcasts, or webinars by signing up for membership access to Laser Focus World online. You can manage your preferences all in one place—and provide our editorial team with your valued feedback.

Magazine Subscription

Can you subscribe to receive our print issue for free? Yes, you sure can!

Newsletter Subscription

Laser Focus World newsletter subscription is free to qualified professionals:

The Daily Beam

Showcases the newest content from Laser Focus World, including photonics- and optics-based applications, components, research, and trends. (Daily)

Product Watch

The latest in products within the photonics industry. (9x per year)

Bio & Life Sciences Product Watch

The latest in products within the biophotonics industry. (4x per year)

Laser Processing Product Watch

The latest in products within the laser processing industry. (3x per year)

Get Published!

If you’d like to write an article for us, reach out with a short pitch to Sally Cole Johnson: [email protected]. We love to hear from you.

Photonics Hot List

Laser Focus World produces a video newscast that gives a peek into what’s happening in the world of photonics.

Following the Photons: A Photonics Podcast

Following the Photons: A Photonics Podcast dives deep into the fascinating world of photonics. Our weekly episodes feature interviews and discussions with industry and research experts, providing valuable perspectives on the issues, technologies, and trends shaping the photonics community.

Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

How to Use a Loan Payment Calculator

The terms and conditions of a loan agreement clearly state the amount and number of installment payments required for repayment, but that happens at the end of the application and approval process. Using a loan payment calculator prior to that helps determine which lender to choose and makes it simpler to create a budget to meet their terms.

How a loan payment calculator works

There are three variables required to use a loan payment calculator. The first two are the amount of the loan and the annual percentage rate (APR). The third is the number of years it will take to pay the loan off. This is known as the “loan term.” Most calculators allow the user to compare multiple loan terms for budgeting purposes.

The objective is to find out how much the lender will require in monthly installment payments. Enter the loan amount, APR, and the term if the calculator requires it. Some loan payment calculators will automatically give the user 24-month, 36-month, 48-month, and 60-month output, so only the loan amount and APR are required.

It’s important to understand that APR is not the same as the interest rate. The APR includes interest and fees, so language is important. Many lenders advertise low-interest rates, and borrowers are surprised when they pay more than expected. Compare the APRs because that’s where lenders are more easily differentiated from one another.

Understanding APR, interest, and amortization

The annual percentage rate includes interest, fees, and other charges from the lender, so it will always be higher than the interest rate. During the life of the loan, those fees will remain constant. Interest payments may be “front-loaded,” with the bulk of them coming in the early months and years of the agreement. This is known as “amortization.”

A loan payment calculator won’t display an amortization schedule because each lender treats this differently. It should, however, show the relationship between interest payments and payments applied to principal during the life of the loan. Users can see the total amount they’ll pay in interest over the life of the loan and how changing the term will affect that.

Opting for a shorter term to save on total interest payments will not change the amortization schedule. That means that borrowers will still pay mostly interest in the early stages of the loan. That’s mostly irrelevant with unsecured personal loans, but it makes a big difference with mortgage payments when the borrower is trying to build equity in their home.

The Bottom Line

Calculating the payment amount is important. Loan payment calculators should be classified as an essential tool when shopping and applying for any type of loan. It’s important to know the amount of monthly installment payments and the effects of interest and APR on the loan. The “total amount paid” tells the borrower exactly how much it will cost to borrow the amount of money they need.

Another factor to consider is that knowing the monthly payment amount before applying for a loan gives the borrower the ability to create a budget to make those payments. Waiting for that information until the loan application has been processed and approved could cause financial unmanageability. The loan payment calculator can help prevent that.

 

Sponsored Content

Contact Information:

Name: Michael Bertini
Email: michael.bertini@iquanti.com
Job Title: Consultant

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.