Why You Should Use These Personal Finance Calculators

Thinking of getting your finances in order? Personal finance calculators are the answer. They help you make an informed decision and plan your finances efficiently. These calculators are available online, especially on company websites selling financial products. You can take help of these Loan calculators to determine the following:

Personal loan

You may need a personal loan to buy your dream home or a four-wheeler. But such loans can disturb your finances if you don’t plan for it. This is why you should take help of a personal loan calculator.

It can determine how much loan amount you need and are applicable for. To put it simply, these calculators can help you budget your finances before you actually take a loan.

The calculator will ask you the loan amount you want to take, the loan tenor and your monthly income. Feeding the numbers will allow the calculator to give you an estimated equated monthly investment (EMI) amount you will have to pay.

Once you know the EMI amount, you can sort out your monthly finance.

Retirement fund

Retirement is inevitable, whether you are an employee or a self-employed person. This is why planning for your retirement becomes critical. You need to build a kitty that can ensure you lead a happy retirement.

That’s because you won’t be earning a regular income in your old age. So, the earlier you start, the easier it is to build a retirement fund. But to make the whole plan, you need to know how much money you need.

A retirement calculator can determine the amount. It can tell you the amount of money you should have after the age of 60 and the quantum of money you should invest every month to build this wealth.

For this, the retirement calculator will need your current income, lifestyle expenses, number of years you plan to work and the number of years you want to spend in retirement.

Life insurance premium

You pay insurance premium to make sure your family is financially secure in case you pass away. The higher the premium, the higher the sum assured generally is. A sum assured is the amount of money your family receives in case you pass away during the policy period.

But how do you calculate the right premium amount? You take help of a life insurance calculator. These calculators determine the premium amount you should pay on the basis of your age and monthly income.

They can also calculate the sum assured amount. They can give you an estimated amount of money your family may need in your absence.

Mutual fund investment

Mutual funds can help your wealth grow through a systematic and planned way. When you have a lump sum amount, you can invest right away. But if you don’t, you can opt for a monthly investment known as a systematic investment plan (SIP).

An SIP calculator can tell you how much money to invest to reach your financial goals. The inputs for the SIP calculator include the monthly investment amount, frequency of investment, expected interest rate, your age and the number of installments. The SIP calculator can also give you the future value of your investment over a period of time.  

Child’s education

You would want to give your child the best education possible. However, higher education costs are rising briskly every year. This is why saving for your child’s education has become a norm of late. You need to build a fund that can finance your child’s education.

Also Read: Easy loan planning with the online loan calculator

A child plan calculator can come in handy in such cases. It can tell you how much you should save for your child’s education. The amount is calculated after you feed your child’s age, the professional course, duration of the course, existing course fee, inflation rate into the calculator.

To sum up, there are multiple calculators available online. Each one is meant for a specific purpose. Utilise them as per your needs.

Tags: Budget, Finance, loans, Personal Finance Calculators

Category: Personal Finance