June 15, 2012 in Finance (E)
[prMac.com] Moscow, Russian Federation - Indie developer Konstantin Novik is proud to introduce a new version of iCreditRate - the mobile loan calculator. This program allows you to estimate a real cost of the loan (so-called effective annual percentage rate). It is similar to standard APR (annual percentage rate), takes into account different commissions, but calculates the rate on the compounded annual basis. The current version of iCreditRate has an original interface and allows to estimate rates both for generic loans and microloans (micro finance loans for a very short-term). The program is designed for loans with fixed-size payments.
As you know, it is very difficult to estimate the real cost of the loan and to compare loans with different parameters (terms are not equal or there are a lot of additional commissions). The program iCreditRate helps to provide the universal measure for different loans: the effective annual percentage rate. This rate may be easily calculated using the function XIRR in the Excel. But it is not a good idea to carry the notebook each time you go to a bank and to fill in electronic workbooks with the parameters of the loan. iCreditRate is a simple instrument that you can buy and install on your iPhone, iPad or iPod touch and use it wherever you want.
Of course, this program has some restrictions. First of all, it can estimate the effective rate only for loans with the fixed-size monthly (for generic loans) or weekly (for microloans) payments. Also for micro loans it is possible to estimate the effective rate based on the final one-time payment at the end of the loan. The second important moment is that the main function of iCreditRate is to estimate the effective rate of the loan and not to generate the payments schedule or to make a reminders for the approaching payments.
The main value of iCreditRate is the ability to compound commissions into the result, because such commissions often generate a substantial addition to the real cost of the loan. Of course, there is another well-known approach for such estimations. It is a so-called APR (annual percentage rate). The main difference between the APR and the effective rate is that the effective rate is calculated on a yearly compounded basis. It is not a very substantial distinction between these two approaches and, if commissions are combined into the APR calculations, you may use the APR value to estimate and compare loans. But the compounded rate is more closer to the real cost of money. If you would like to compare different loans, you may use either APR (from other calculators) or the effective rate from iCreditRate. Don't compare loans both on APR or the effective rate basis because it has no sense.
Lets look at the example: The bank have sent you an offer: very advantageous loan, the rate is 18.16% per year, the total amount is 100 000 USD, loan's term is 2 years, the monthly payment is only 5 000 USD. The one-time fee is 5 000 USD and the monthly commission is 1 000 USD.
Fill in all application fields and press "Calculate". You can see that a real loan rate is 53.49% per year. Maybe it is better to look for a more friendly loan?
iCreditRate will help you to clarify any complications linked to the loans. Thus you could feel yourself more comfortable with your bank, because you will know how much really you pay or will pay for the loan. And finally it helps you to make more reasonable decisions.
* iOS 4.3 or later
* iPhone, iPod touch and iPad
* 0.5 MB
Pricing and Availability:
iCreditRate 1.0.6 is $2.99 USD (or equivalent amount in other currencies) and available worldwide exclusively through the App Store in the Finance category.
Located in Moscow, Russian Federation, indie developer Konstantin Novik designs easy-to-use financial applications for iOS. Copyright (C) 2012 Konstantin Novik. All Rights Reserved. Apple, the Apple logo, iPhone, iPod and iPad are registered trademarks of Apple Inc. in the U.S. and/or other countries.