- Date : 15/06/2020
- Read: 5 mins
Find out how financial calculators can help address important financial questions and supplement our decision-making process.
Online financial calculators have made life very simple. They are easy to use and are perfect for calculating mortgages, taxes, EMIs, interest income, insurance, salary, expenditures etc. If you are wondering how to use financial calculator, all you need to do is feed the available information in the specific fields, and you’ll get the answer in the blink of an eye.
For example, in order to calculate the accrued amount of an investment on which compound interest will be applicable, you have to enter the available information into a mathematical formula. This may be a simple task for those with adequate mathematical knowledge but can be equally perturbing for others.
Coming to how to calculate financial plan, you will need the principal amount, the rate of interest, the compounding interval and the tenure of the investment or loan. The online calculator will conduct the A = P (1 + r/n) (nt) calculation in a flash. The same formula can be applied for calculations where you need to know your EMI payments or what your payable income tax would be, for a particular salary break-up.
Again, some online calculators provide you with less obvious answers. For instance, the TomorrowMakers calculators go beyond simple mathematical formulas. They are considered among the best financial calculator as they give you a more holistic response to all your financial questions.
Here are some different types of financial calculators:
- The monthly budget calculator will ask you for personal information like age, location, family and income.
- It will then capture your monthly dues, expenses and savings. The result will be generated and shared with you.
Many of us struggle to keep our expenses in check on a regular basis. This calculator helps you to bring financial discipline to your daily expenses.
- This calculator will first take your child’s present age and the age by when higher education is expected to start.
- Then, you can enter the amount that you think will be required for higher education and factor in the inflation, or you can let the calculator make that estimate for you. In the latter case, you will have to provide the educational qualification that you aspire for your child and set an assumed rate of inflation.
- You will then have to provide the details of your savings, after which you will get the result of your child’s education cost, monthly saving requirement and your readiness score to meet education expenses.
The quality of your child’s education can eventually be the decider of his/her academic and professional future. Taking this calculator's assistance is, therefore, a no brainer.
The Retirement Calculator takes an exhaustive look at your retirement needs. This includes advising if your existing savings are enough to meet your retirement needs and how much more you need to save.
- This calculator considers facts like your present age, retirement age, other personal finance information, inflation rate etc.
- It then looks at your monthly expenses, savings, investments and the expected returns for each.
- After you give all this information, you will receive a free PDF copy of the result. This calculator also compares your retirement readiness with that of your peers.
If you are wondering how to arrive at the ideal figure that can secure your financial future, TomorrowMakers’ retirement calculator can greatly assist you with your decision. Besides that, take a look at the mistakes you should avoid when calculating your retirement corpus.
- The life insurance calculator will take your family income, number of members and dependents into account.
- It will then ask for your current monthly expenses and liabilities.
- Lastly, you will have to feed in future expenses related to children’s education and marriage. On the same page, you have to disclose your existing savings, investments and life cover related information.
- With this information, the calculator can give you an estimate of your life insurance requirement.
Life insurance investments are often made based on the advice given by insurance agents or by using sheer gut feeling. This calculator adds real-life considerations to your insurance decisions.
The Cost of Living Calculator gives you an insight into how your cost of living would change if you relocate from one city to another. In this TomorrowMakers Calculator;
- You have to select your present and new city from the dropdown menu, which includes international cities. If your city is not included in the dropdown, you can select the nearest one to get a fair idea.
- You have to then give information about your lifestyle, your income, number of dependents, relationship status etc.
- Next, you have to provide your expenses and you get the result in a few seconds.
This calculator can be really helpful if you are relocating to another city or just toying with the idea, in the planning stage.
With these calculators, you will find assistive answers to financial questions that require considerable pre-planning. While moving from one city to another, knowing your new cost of living well in advance will help you to negotiate your compensation package better. Similarly, by estimating your retirement needs with the retirement planning calculator, you will be able to save better for a secure future. Thus, Tomorrowmakers calculators help you to find answers to questions that need a more methodical approach.