# Loan

## Loan Calculator

[enlarge]

Getting a loan is one of the more common things that people do when looking to make a large purchase. Buying a house and a car will often require you to get a loan since it is very expensive to purchase it without any financing. When looking to keep track of a loan and make calculations for one you will want to use a template on Excel.

An Excel template will give you the ability to keep track of things such as the principal balance and the interest rate for cars and homes. With this template you will have an efficient way of determining the total cost of thee big ticket items.

## Principle Balance Loan Calculator

The first part of the Excel template when calculating a loan is the principal balance. This is the amount of money you need to pay in relation to the loan. It is simply the original amount of money you need to pay back over time.

However this will be added on with interest but it is a good idea to know how much the principal balance will be so that you can determine if a car loan or home loan is affordable for you. If you are looking to calculate a loan with an Excel template then you will want to go over the principal balance.

## Interest Rate Loan Calculator

Another part of the loan calculations is the interest rate. This is a percentage that is added to the principal balance. The interest rate usually ranges form 4% to 18% depending on the personâ€™s credit rating. Going over the interest rate on the template will give you a good idea of how much you will need to pay for a loan on top of the principal balance.

By calculating the interest rate you will have the means to efficiently know how much money you will need to pay in order to afford a home or a car.

## Debt to Income Calculator

[enlarge]

### Why How Much You Owe is Important

Your debt to income score plays an important factor in determining your credit score. How much you owe other creditors in comparison to your income is one of the most important factors when determining loan approval.

### Using a Debt to Income Calculator

An Excel template has a debt to income calculator built into the spreadsheet. With the spreadsheet you can enter creditors, grocery expenses, utilities, rent, and other expenses. When you set your income amount the calculator will determine what your ratio is.

When you use the template you can record and track your progress or experiment with your bills to see what changes will affect your ratio the best.

## Reverse Mortgage Calculator

A reverse mortgage is an option available to senior citizens in many countries, and it allows them to use their home’s equity to obtain cash.

### What Can the Reverse Mortgage Calculator Do?

There are many variables that affect how much equity a home has and the amount of cash that can be obtained through a reverse mortgage. This Excel template allows you to calculate how much according to factors like the market value of your home, how much you want each month and the lump sum desired.

### How to Use the Template

In order to be able to correctly use this you will have to know certain things. Especially the value of your home at the present and how much is owed on it. All the fields have to be filled in, and there are several options to choose from. Once the information is entered, the calculator will show all the relevant values.

## Credit Impairment Calculator

If you have ever thought about a applying for a loan with sub-standard credit or have a job that is not the typical type that lenders are looking for, then you will need to have the ability to calculate this type of mortgage. The formula can be involved but is well worth using. It may be that your can afford a loan.

### Credit Impairment Calculator

We have a free template for Excel that allows you to simply enter values into the cells. The spreadsheet will automatically calculate the numbers you are looking for. This type of credit impairment calculator can help you determine whether this type of mortgage is going to fit with your finances.