How to Use a Secured Loan Calculator

A secured loan is a loan that is "secured" or "backed" by a borrower's collateral. The collateral can be anything from a car to a home. It will be forfeited to the lender if the borrower does not repay the loan. A secured loan calculator can help you estimate your interest and the monthly cost of the secured loan.

Instructions

1

Find a secured loan calculator online. Use your favorite search engine and search for "secured loan calculator." Pick the one you are most comfortable with.

2

Enter the loan amount that you want to borrow. Do not add a dollar sign.

3

Input the terms of the desired loan. Usually, you will have to pay off a secured loan in monthly installments.

4

Add the interest rate. The interest rate for a secured loan is usually much lower than the rate for a non-secured loan, but your credit score and history will determine the interest rate.

5

Click on the "Calculate" button. This will give you your estimated monthly payment and may be divided into amounts such as interest paid, cumulative payments and principal remaining.