Nowadays, for anything related to money or financial product/services, there is an application on your smartphone which might help you in preparing, managing and executing your financial burdens over the month or years. Most of the financial products that we use like a credit card or a personal loan, a fixed deposit or a Demat account, are all part of certain calculations related to money – what goes in and what comes in return?
To excel in these calculations, one requires enough time and patience. However, we the apps and websites we visit, whether related to a personal loan or a credit line, or may be a mutual fund distributor, they already have a calculator that might ask for a few insights regarding your proposed investment or loan and might display the overall cost of offering any such product.
Here we discuss about the top 5 calculators that might come handy on a journey towards a financial bliss –
Interest Rate Calculator
All those who have availed a loan in the past or look forward to it, shall know the importance of the rate of interest that are applicable to the loan amount. The interest rates directly affect the overall repayment amount to be paid during the course of the loan.
An interest rate calculator might help you reflect on the overall cost of the loan during the repayment period, such as anticipated EMI amount, which can help you plan your budget accordingly within your income and with all routine expenses. The interest rates are applicable mostly in two ways, fixed or flexible. For both of them, the calculation works differently.
PPF Calculator
PPF stands for Public Provident Fund, which is a social security scheme run by the Government of India. Most of the people who have subscribed to these services, do not have a good idea about how the calculation works in regards to the monthly and yearly deposits made towards the provident fund account.
With a tool as simple as the PPF calculator, a subscriber can keep track of the returns they are getting on the deposits made towards the provident fund. All these accounts are active for a specific period in years, so the subscriber can also calculate the overall amount of return they will be getting by the end of this period.
Lumpsum Calculator
Lumpsum is an investor’s term for the amount of investment to be made as a sum of money, unlike SIP. The calculator helps in determining the present value of a lump sum investment or a one-time investment, over a period of time. All that one needs to do is enter the amount to be invested, the tenor of the proposed investment and the expected rate of return in order to anticipate the returns and profit.
Most people invest with lumpsum amounts with their savings in order to beat the odds of inflation and low savings rate of interest. The amount that is invested might earn better returns as compared to the traditional methods of saving.
SIP Calculator
SIP is a Systematic Investment Plan, majorly offered by mutual fund houses, in order to enable an investor to invest small amounts periodically over a week, a month or maybe a year. The amount is then invested in terms of units in various mutual funds, mostly in the form a basket.
There are major players in the market like Edelweiss Mutual Fund, ICICI Prudential and various other banks that have their own mutual fund arm which will offer you, easy SIP calculators, to pre-calculate the amount you invest and the possible returns over a period of time.
Balance Transfer Calculator
Balance Transfer commonly known as BT in the credit market is a unique feature that enables a customer to transfer their existing debt either from a credit card account or from a personal loan balance. The calculator helps in determining the overall cost of transfer, which includes the new rate of interest applicable on the amount which is being transferred to the new account.
Most of the balance transfer facilities offer zero interest or low-cost balance transfer for a limited period of time, once the period is over, the normal rates apply to the transactions done by the credit card or any top-up availed on the personal loan account.
With all these facilities made available to the customers, anyone who is looking forward to any of the services mentioned above must make use of these calculators in order to access and analyze all possibilities. Taking financial decisions in a hurry, or through the means of others without calculating your current position might prove to be costly by the time of your realization.