Every individual across the globe has some or other financial goals. Be it owning a car or planning for retirement, or saving funds for any other purpose, planning your investments is the most significant step you can take in your financial journey. In the earlier times, many people used to find financial planning difficult.
However, with the advent of time, many financial tools came into existence that helps people make well-informed financial decisions. A financial planning calculator is one such efficient tool that assists you to get one step closer to your monetary goals and find out which investment plan or insurance policy would be good for you.
What is a Financial Planning Calculator?
Financial planning is one of the crucial measures to saving and investing your income in present times and fulfilling your short and long term purposes successfully in life. A financial planning calculator is an online tool that you can use to plan your finances and savings.
This financial or investment calculator further helps calculate loan interest rate, tax rate and estimates of regressions. Every person who wishes to plan their expenses and make a well-informed decision can readily use these financial planning calculators and get reliable estimates within minutes.
Five Types of Financial Planning Calculators
Many people often tend to get confused while choosing which savings or investment is best suited for them. To understand which policy you need to go for, you first have to identify your needs. Then find the calculator best suited as per your obligations. Mentioned below are some popular financial planning calculators that you can use as per your diverse requirements.
1. SIP Calculator
People who are into savings already know how helpful SIP (Systematic Investment Plan) is for their future. SIP returns get determined by compound interest (CI). Hence, with the help of an online SIP calculator, you can readily find out the interest rates, instalment options according to your earnings and every other detail about SIP investment within minutes.
2. Retirement Planning Calculator
People usually worry if they will have enough money when they retire. Well, you don't have to worry anymore because, with a retirement financial planning calculator, you can find out exactly how much you need to save to be safe.
The steps to finding out how to secure your future are pretty simple. You have to enter your current age and the age you will retire in the first stage. The next step requires you to enter your current monthly savings. You also enter savings you have right now for retirement and the rate of interest on said savings.
After you have entered all the information, you can see how much you need to invest monthly. You also get to know how much money you will have after a while if you keep saving. Moreover, the calculator will also let you know a rough estimate of your post-retirement savings and expenses.
3. Income Tax Calculator
You might consider income tax to be a big hit to your savings. However, what if you could calculate how much tax you need to pay and save accordingly?
Both the old and new tax regimes require an appropriate assessment before you pick one. With the assistance of the personal income tax calculator, you can measure the effectiveness of both the income tax structures on your pay. This online planning calculator will help you gauge your taxes on your salary.
4. Child Education Planning Calculator
Planning your kid's education takes time, patience, and a lot of expenses. With an education expenses calculator, you can compute how much you will need to pay for your kid and form a stable plan. If there are any changes to be made, you will readily modify your plans accordingly.
The first thing you have to do is choose where you want your child to study. Are they going abroad or want to study in India? After that, with the help of an education expenses calculator, enter your child's age and which grade they are currently studying in.
Entering the grade will show the year in which your child will go to college. Then you have to enter your monthly salary, any current loans that you might have, your current savings, and the applicable rate of interest.
Also, if you are looking for universities and schools abroad, you will get to see the options you have along with how much you may have to pay. The same goes for universities and schools in India.
5. EMI Calculator
A personal loan EMI depends on the amount and tenure of the loan, rate of interest, monthly salary, and the company you work with. To calculate your EMI, all you have to do is enter the amount you want to loan from the bank, the time required to pay back the amount, and the interest amount.
This way, with an EMI calculator, you can figure out how much you need to loan and the respective EMI amounts. You can also see a chart representation of your plan along with the options of printing out a PDF version of the same.
Financial planning influences all areas of your life. When you plan your finances, you assess your current and future monetary standing. Financial calculators can help in these situations to figure out how to be financially stable in the future while you pay off EMIs. With just a couple of taps on your mobile screen, you can find out how much you need to save or how much return you will get from your chosen investment plans.
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