Welcome to CrunchLending: A Guide to Using Our Calculators

We understand that managing your finances can feel overwhelming, especially if you’re just starting out. That’s why we’ve designed our calculators to help you take the first steps toward understanding your financial situation and exploring personal loan options. This guide will walk you through using our tools effectively, define the inputs required, and explain how to gather the data you need to make informed decisions.

1. Debt-to-Income (DTI) Trend Calculator

The DTI Trend Calculator helps you visualize how your debt compares to your income and provides actionable insights into improving your financial health over time.

Inputs:

• Monthly Debt Payment Amount ($): This is the total amount you pay each month toward debts such as credit cards, student loans, car loans, or other recurring debt payments.
• Monthly Income ($): Your total monthly income before taxes and deductions. Include wages, salaries, bonuses, and other sources of income.
• Desired DTI Value (%): The target DTI percentage you want to achieve. A DTI of 35% or lower is generally considered healthy. Lowering this value significantly increases your chances of getting a loan.

How to Gather Your Data:

• Monthly Debt Payment: Check recent statements from all your creditors. Add up your minimum monthly payments for loans and credit cards.
• Monthly Income: Refer to your most recent pay stubs or bank deposits. If you have irregular income, use an average from the past 3–6 months.
• Desired DTI: Use 35% as a starting point, or adjust based on your comfort level.

2. Loan Calculator

The Loan Calculator helps you estimate your monthly payments, total interest, and the cost of borrowing for any type of loan.

Inputs:

• Loan Amount ($): The total amount you want to borrow.
• Annual Interest Rate (%): The yearly interest rate charged on the loan.
• Loan Term (Years): The time you have to repay the loan, typically in years.
• Repayment Frequency: Whether payments will be made monthly, bi-weekly, or weekly.

How to Gather Your Data:

• Loan Amount: Decide how much you need to borrow. If you’re unsure, estimate based on your immediate financial needs.
• Interest Rate: Look at offers from lenders or check pre-qualification tools for an estimate.
• Loan Term: Determine how long you’d prefer to take to repay the loan. Common terms are 3, 5, or 7 years.

3. Car Budget Calculator

The Car Budget Calculator is designed to help you understand what car price fits within your budget based on your desired monthly payment and other financial factors. This calculator prioritizes simplicity, allowing you to focus on budgeting for your car rather than navigating complex calculations.

Inputs:

• Desired Monthly Payment ($): The amount you’re comfortable paying each month for the car loan.
• Loan Term (Years): The length of the loan, typically between 1–7 years.
• Annual Interest Rate (APR) (%): The yearly interest rate applied to your loan.
• Down Payment ($): The upfront amount you’ll pay toward the car’s purchase price.
• Trade-In Value ($): The value of your current vehicle if you plan to trade it in.

How to Use These Inputs:

1. Desired Monthly Payment:

Decide how much you can comfortably allocate each month for a car loan. Be realistic and ensure this amount doesn’t overstretch your budget for other essential expenses.

2. Loan Term:

Select a term based on your financial situation. Shorter terms (e.g., 3–5 years) result in higher monthly payments but less total interest paid. Longer terms (e.g., 6–7 years) lower your monthly payments but increase total interest.

3. Annual Interest Rate:

Research interest rates for car loans from banks, credit unions, or dealerships. Rates can vary depending on your credit score and the lender’s terms.

4. Down Payment:

Input the amount you plan to pay upfront. A higher down payment reduces the loan amount, saving you money on interest and improving your chances of approval.

5. Trade-In Value:

If you’re trading in a vehicle, research its estimated value using online appraisal tools or offers from dealerships.

Outputs:

• Estimated Car Price: The maximum car price that fits your monthly payment, including your down payment and trade-in value.
• Loan Amount: The total amount borrowed for the car after accounting for the down payment and trade-in.
• Total Interest Paid: The total amount of interest paid over the loan term. This helps you gauge the cost of borrowing.
• Total Amount Paid: The full amount you’ll pay over the loan’s duration, including the principal and interest.

Advice for Users:

• Be Aware of Interest Costs:

A lower interest rate significantly reduces the total cost of your loan. If your credit score is not optimal, consider improving it before applying for a loan to secure better terms.

• Don’t Overstretch:

While longer loan terms reduce monthly payments, they increase the total amount paid due to interest. Aim for a balance between affordability and minimizing interest costs.

• Save on Down Payment:

A higher down payment reduces your loan amount, total interest, and monthly payments. This can also make lenders view you as a lower-risk borrower.

• Trade-In Smartly:

Maximize your trade-in value by cleaning and maintaining your current vehicle. Check multiple offers to ensure you get a fair deal.

• Review Total Cost:

Look beyond the monthly payment and focus on the total cost of the car, including interest. Use the calculator’s output to make an informed decision.

Conclusion:

The Car Budget Calculator simplifies your car-buying journey, helping you make informed financial decisions. Use it as a starting point to explore what you can budget for your next vehicle without overextending yourself. By balancing monthly affordability with total costs, you can confidently navigate your car purchase.

Tips for Using the Calculators

• Double-Check Your Inputs: Accurate data leads to better results. Take your time to gather precise numbers.
• Explore Different Scenarios: Test different inputs to see how changes in loan amount, interest rate, or term affect your results.
• Save Your Results: Use the copy-to-clipboard function to save calculations for future reference.

Next Steps

Using these calculators is just the beginning. Once you understand your financial situation, CrunchLending can connect you with personal loan offers through our trusted affiliate partners. Go ahead! Explore the tools and crunch your numbers today.