The Advantages of Using Online Financial Calculator

Calculations are an integral part of our day-to-day lives. From deciding how much and where we can invest to identifying the returns we have made; we need to rely on calculations for everything.

It is difficult for most investors to do all these calculations by themselves. An easy way around this is to use online financial calculators. There are several advantages of financial calculators that are easily available online. So, let’s understand more on online financial calculators and how you can use them.

In this article, we will cover:

  • What are online financial calculators
  • Types of financial calculators
  • Advantages of financial calculators
  • How to use online financial calculators

What are online financial calculators

Online financial calculators enable you to get an estimate of the investment needed to achieve any financial goal. It also enables you to measure the returns your investment has generated, tax calculation, and so on.

All you need to do is select the appropriate calculator, enter the data and get the projections immediately. These are completely free of cost, convenient to use, and can be used anytime.

Online financial calculators thus help you in financial decision-making and enables you to make an informed choice.

Types of financial calculators

There are several types of online financial calculators available.

Goal Calculator: It enables you to choose your goal, estimate the cost of goal / inflation in the cost of the goal and your expected returns to understand how much to save per month to reach the goal.

Crorepati Calculator: This calculator calculates the amount of SIP investments required, using your assumptions, to reach Rs 1 crore in savings in your chosen timeframe. Here you need to enter details like your current age, the age at which you want to become a crorepati, target value, investment tenure and present investments (if any).

SIP Calculator: It is a simple and efficient way to get estimates on the amount you need to invest as SIP, in order to reach your financial target. You need to enter the SIP amount, investment tenure and expected rate of return per annum to arrive at the value on maturity.

You can access all the three calculators on the PL website by clicking here.

Advantages of financial calculators

Let us now assess the advantages of using financial calculators:

#1 Online financial calculators are simple to use and easily available. You can enter multiple data points till you see a financial projection that is in line with your objectives and goals.

#2 It saves the time and effort required in undertaking all the calculations manually.

#3 Another advantage of financial calculators is that they help you effectively plan your investments and loans.

#4 You can use the financial calculators as many times as you want, and it’s completely free of cost.

Based on the projections of the financial calculator, you can make informed decisions about your finances.

For further guidance on how to plan your investments and manage your wealth, get in touch with the qualified experts at Prabhudas Lilladher. PL has been in the business for nearly 8 decades. With its full-stack offerings, PL can cater to every financial need.

You can get expert, research-backed advice from PL’s highly qualified professionals. Whether it is direct equity or mutual funds and insurance, PL offers everything under one roof. Click here start your investment journey with PL.

How to use online financial calculators

Every financial calculator requires you to enter different details. Some of which, we have captured above.

Now, let’s take a look at how to use online financial calculators with the help of the example of an SIP calculator. This is one of the most widely used types of financial calculator.

An SIP calculator, in simple words, helps you estimate the value of your investment on maturity. It is entirely customisable – as in you can keep entering different numbers in every box – investment tenure, investment amount, expected rate of return. That’s all. You will instantly see the value on maturity on the right-hand side box. You don’t require sophisticated calculations or even a pen and paper.

  • EXAMPLE: If you enter your SIP amount as ₹500 for each month. Next, decide the tenure of investment – say 3 years. Lastly, you should also enter the expected annual returns, say 12%. Once you enter these details, the SIP calculator will automatically calculate the maturity amount. In other words, this can be called an SIP returns calculator.
  • So, in this case, your invested amount comes to ₹18,000, estimated returns are ₹3,538 and total value comes to ₹21,538.

Once you try it out, you will realise that you just need to feed in relevant data in each section of the SIP Calculator, and arrive at the sweet spot of your periodic SIP.

You can decide the SIP amount based on your own income, financial goals and then choose a mutual fund that can help you meet your financial expectations.

Today, a variety of mutual funds are available in the market. Whether you are a conservative, moderate or aggressive investor – you can invest in mutual funds that suit your risk profile and investment objective.

But remember that choosing a mutual fund scheme requires a sufficient understanding of the product and the risk and rewards that come with the particular product. So, seeking advice from an experienced professional is ideal, before you invest in mutual funds.

With PL, you can not only get access to a variety of mutual fund schemes but also the right guidance from experienced professionals. You can also download the PL DigiMF app, a one-stop solution for all your Mutual Fund investment needs. It enables you to track your investments, access insight-rich reports and performance analysis and also undertake online transactions for your mutual fund investments.

To invest in mutual funds with PL, click here

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