Best Debt Calculators

Best Debt Calculators – Calculators that Serve You Well

Debt in contrast to usual life is considered significant in both big and small businesses. Along with that it also plays important role in our personal lives. DaProfitClub brings you some of the best debt calculators.

Debt – An Introduction

Debt financing is an important source for the accumulation of funds in businesses. It is considered important because it not only because of the funds but also determines the strength of a company. A net debt means the ability of a company to have assets and bear its expenses once all the dues are paid. This is done through a balance sheet where the company keeps a record of what others owe to it and how much it has to support its structure.

If we calculate the net debt of a company, it will show a detailed analysis of the financial situation of that company. It is the net debt and the assets that it holds on the valuation of which the strength of a company is determined. If the liquid assets are no more after the debt is paid by the company, then it means that the company has gone defaulter. It is of no use to investors then and usually goes into severe financial crises.

Debt is the indication of the success or failure of a business. The more debt, the more problems it will face in the market. If some company can pay all its debts and still there is enough amount left to the company, then it is a positive indication. It shows that the company can be relied on, and the investor shouldn't feel worried if they intend to invest there.

Significance of Debt

Many companies, rather most in the market, go for debt financing when they feel the need for money. It is important for the survival of their businesses. This debt is either taken from major financial institutions like banks, consortiums or from relatively small ones like individual investors. This is done in different manners rather than issuing bonds, stock shares, equity, etc. which are done in investments.

Once a company borrows money from a lender, they will have to pay interest on the principal amount. This adds to the liability of the company. If it doesn’t perform well even after debt, then it loses its assets gradually to the lender. There is a fixed date for the return of loans. And the principal amount must be completely returned along with the amount of interest that has accumulated with the passage of time.

 Though the companies might take debt to support themselves, it must not be more than the amount that they can return. If this is the case, then it will be crippled if it is not able to pay back the amount of debt. There must be enough cash with the company that not only fulfills its needs but also keeps the cash flow continuing.

Companies prefer to take a loan instead of selling their shares. It is because of many significant reasons. One of these is ownership. If some company sells its shares, then it will necessarily have to give the ownership rights to those who own parts of it. This will lead to management problems, because the greater the number of owners, the harder it would be to control. So, to retain control, many companies prefer to take a loan for the fulfillment of their needs.

If a company is growing at an encouraging rate, then taking a loan is not that big problem. It will be able to balance the income and expenses with the profit that comes to its account. In contrast, if it has sold shares to investors, then this profit will be shared amongst the shareholders in form of dividends. In contrast to equity financing, a loan is an easy process. There are no significant complications in the loan which the company owner might face in form of investments.

There is no approval required for keeping the company going in case of debt while in investments it becomes a necessity.

Different Types of Debt

There are different types of debts that can be availed by a company or an individual. These include Secured Debt, Unsecured Debt, Revolving Debt, Mortgages, etc. The last one is particularly important in the case of individuals who want to borrow money. Secured debt is that type of debt where the borrower has a guarantee that there is some property or assets to support the debt. In case the borrower is not able to pay back the debt, then the property or asset is taken by the lender.

In the second type, i.e., unsecured debt, there is no collateral. The borrow can't guarantee the return of the debt based on any solid asset. Revolving debt refers to that type of debt where there is a limit to the funds that are available to the borrower. Mortgages are those types of loans where the borrower takes money to spend on real estate. It is one of the most common forms of debt.

Some Best Online Calculators for Debt Calculation

To ensure that the users have easy access to the calculation of debt, there are a number of online calculators. We have brought you some of the best to fulfill your needs.

• DaProfitClub

DaProfitClub provides the best online calculation services. One of the calculators available here is the debt calculator. It can be availed at the financial calculators' section. Some of the debt calculators are loan to value calculator, loan calculator, mortgage calculator, boat loan calculator, personal loan calculator, auto loan calculator, etc.

All these calculators will serve you in the area mentioned. They are easy to use and give precise results. Each of them provides the formula to ensure that the user can calculate it themselves if they want to. 

• The Balance 

It is the collection of eight best calculators that can serve the users in the calculation of their debt. These include Quicken, Undebt.it, ZilchWorks, Vertex42, Debt Payoff Planner, Debt Free, Debt Tracker, Debt Payoff Assistant, etc. All these are available in form of software and the user can access them by making an account there.

It provides a wide range of apps that are available for both iOS and Android.