Banking or legal interest calculator: how much does a loan cost?
Online interest calculator
An online interest calculator is a tool made available by various specialized websites to count the expenses related to a loan or a mortgage. Spending on interest is one of the main elements to consider when subscribing to a loan: all the loans, in fact, personal or aimed at buying a house or an asset, require a remuneration for the bank or credit institution that provides the money. This remuneration is expressed with an interest rate, calculated as a percentage of the disbursed capital.
The online calculation systems allow us to have a more precise idea about the interest expense we will have to face. With a simple search on a search engine, you can find many websites that offer simulations on bank interest to be recognized in the event of a loan or mortgage. Usually, these portals require the insertion of a small amount of information that is easy to find regarding the financing: the sum disbursed on loan, the duration of the repayment period, the frequency of the installments and the interest rate. With these elements, a simulation of the loan installment can be carried out and the result obtained will be the share of interest to be paid overall, but sometimes even on the single installment. We have explained to you in specific details how to best use these tools, both for loans and for mortgages.
In addition to bank interest, the user may be interested in calculating legal interest. These are the interests provided for by art. 1284 of the Civil Code, which provides for an expense for “the enjoyment of a sum of money”. A loan, in short. The particularity of these interests is that they are set by the State: the Ministry of Economy updates them every year by December 15, taking as a reference the average of government bond yields.
There are also numerous online examples of legal interest calculators: in this case specific information about the loan must be entered, such as the capital, the start date and the end date of the loan. We must then choose the method of capitalization of the interests: the choice usually falls between any capitalization, quarterly, half-yearly or annual. It is then sufficient to carry out the calculation automatically and the required amount of legal interest will be obtained.