# Introduction to Tools and Calculators

The following article is devoted to Introduction to Tools and Calculators. World of finance today have given so many new things to the society that one gets confused about the options he or she has when it comes to availing any kind of loans, or planning any kind of investments. There are so many complex calculations involved that sometimes it gets very difficult to understand the complete logic behind that. Moreover, it becomes even more difficult for a layman who just knows that how much he is getting and how much he has to repay.

Invent of computer programs and calculators have eased the situation for all these difficulties. They are so many complex programs or calculators which are very user friendly and help the end users to understand what they want to know. For a single loan there are so many options in terms of repayment, tenure of the loan based on different levels of rate of interest.

The basic requirement at the time of availing a loan is to know how much would be the cash outgo on equal intervals. In other words what would be the Equated Monthly Installment for any type of loan taken whether it is mortgage loan, auto loan, personal loan or education loan.

One just have to provide the basis like amount of the loan, tenure of the loan, level of interest rates and any moratorium period if any. Loan calculator will just throw the amount of EMI you need to shell out. One of the major benefits of loan calculator is that it saves time in doing manual calculation. Just provide basic details and with a click of button you will come to know what is EMI.

Loan calculators are not only for calculating the EMI, however there are another type of loan calculators which throws out the eligible amount of loan. Surprised??? But it is true. You will just enter your monthly income, your fixed obligations in terms of loans already taken, the loan calculator will throw how much loan you are eligible for.

Another aspect of looking at the loan or investment calculators is that they can help you out with what would be your rate of return on any investments you made now. Again the basic requirements would be the amount of investment to be made, what would be the investment horizon and what is the final amount required after that period.

As mentioned above why we need calculators, it is to save time in doing the manual calculations, to choose best options amongst all the available options in terms of various complex structures. You can make thousands of the combination by changing slight details. These days now the scientific calculators have come which use the techniques like time value of money which helps in choosing the best investment plans.