When you are planning to take control of your financial life, starting to take budget seriously or about to start investing, financial calculators can be of immense help. Financial calculators simplify some of the complex calculations that we have to undertake to manage and understand the working of the various financial products.
We generally believe that investing is meant for people who are good with calculations, but with financial calculators, you have nothing to worry. Many financial calculators are available online where you just have to add the required fields and it automatically calculates the required amount for you.
Money management is more of an art that includes investing the right amounts in the right instruments minding in mind your goals and risk-taking capacities. While we may start saving and investing, knowing the future value of our money becomes important as inflation lowers the value of money. Financial calculators also help to calculate the future value of your goal by taking a certain rate of inflation.
Here are some of the important online financial calculators that you should know about:
Compound interest is popularly known as the 8th wonder of the world. Compound interest is the interest received on the earlier interest. As a result, the initial principal continues to grow faster. The process is repeated for the entire investment duration.
The amount will depend on the number of times, the investment is compounded. Typically, investment options are compounded once a year.
Click here to calculate the value of your investments with compound interest at play.
Knowing the total amount that you need to save to fulfil a financial goal is one of the first few steps in financial planning. Thanks to inflation, the value of your goal won’t remain the same. Hence, it is important to find out the future value of your goal.
E.g., if you are planning for your child’s higher education which currently cost Rs. 10 lakhs today, you may have to calculate its future cost 5 years down the line. This is where the future value calculator comes in the picture. It can be also called a goal planner calculator as it helps you to understand the future value of the goal so that you can plan it accordingly.
In an online future value calculator, you can check the future value of our investments with regular investments and an expected rate of returns. If you have any initial investment, you can add that as well. Also, put the number of years that you are likely to stay invested.
Click here to know the future value of your investments.
Recurring Deposit (RD) is a simple saving financial product that lets you save a certain amount of money every month along with a fixed rate of interest. Different financial institutions such as banks offer RD calculator to their clients.
The recurring deposit calculator will help you to find the maturity value at the end of the tenure. The maturity value includes the principal amount along with the interest earned.
In an RD calculator, you need to add the amount of money that you are planning to invest monthly, the rate of interest given on the RD and your deposit tenure. The calculator will show the maturity value.
Click here to check out an RD calculator.
Fixed Deposits or Time Deposits are popular saving options among Indian savers. Unlike an RD where customers can save money regularly, in FD, customers need to park a one-time lumpsum amount. The interest given on FDs is generally higher than RDs.
Before parking your money in a fixed deposit, you may want to know how much you will get at maturity with a specific rate of interest. A fixed deposit calculator helps you to do that. The FD calculator will show the amount that you will receive at maturity.
Fixed Deposit (FD) Calculator also considers the type of fixed deposits. In cumulative option, as the interest paid is invested back, the maturity amount includes the interest as well. However, in case of interest payout, the FD calculator will show the quarterly or monthly interest amount that will be credited to your savings account.
Conclusion: These were some of the basic financial calculators that can help you to plan your finances properly. So, start planning for your finances today.
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