- How can different loan and investment calculators help you?
- Know about the benefits of Loan EMI, Eligibility, FD, SIP Calculator in this post
During your life, you must have or may come across different financial products. These products can be related to the loan (personal loan, home loan, gold loan, etc.), Investment (Fixed Deposit, Mutual Fund, etc.) or Credit Card. All these products hold special importance. When using these products, you will need to make some important calculations related to them. For these calculations, there are several loan and investment calculators that people can use. Let’s say you want to opt for a loan and want to know about the repayment amount you would need to pay every month.
The manual calculation will consume all your precious time. There will be no guarantee of accuracy also.
That’s where a Loan EMI Calculator comes into the picture — calculating the EMI amount accurately within a second. Similar to this, there are several calculators for different financial products such as Loan Eligibility Calculator, FD Calculator, Credit Card EMI Calculator, Gold Loan Calculator, SIP Calculator, etc. Some of the best qualities of these calculators are their accuracy, efficiency and time-saving.
In this article, we will tell you about all these calculators in detail, how you can use it, how they help you in making the right decision, etc, with suitable examples of each calculator. So, if you are someone who wants to know about any of the loan and investment calculators, this could be a good read for you. Keep reading!
Table of Contents
What are Different Loan and Investment Calculators?
As we said there are several calculators provided by Banks, Non-Banking Finance Companies (NBFCs), Housing Finance Companies (HFCs) and Mutual Fund Companies. These calculators serve different purposes for different people. We are showing each of these calculators below. Have a look.
Loan EMI Calculator
A loan is one of the most popular financial products among customers who require urgent funds. It helps them in fulfilling their financial requirements. Lenders provide different kinds of loans to customers, such as Personal Loan, Home Loan, Car Loan, Gold Loan, Loan Against Property, etc.
There is one common thing that applies to any kind of loan — Repayment. Whenever you opt for any kind of loan, lenders provide you a fixed tenure within which you will need to repay the loan amount with the interest. And one of the most popular methods of repayment is via Equated Monthly Installment (EMI). As you can see from its name, you will need to pay a fixed amount every month towards repayment of the loan. This amount consists of a portion of both principal and interest amounts.
Before opting for any kind of loan, it is important to have an estimate of the EMI amount. It helps an individual to gauge whether this EMI would be according to his or her repayment capacity or not. That’s exactly where a Loan EMI Calculator comes into the picture as it helps individuals get an estimate of their EMI amount.
So how exactly does this Loan EMI Calculator function? Well, you will need a few basic details to know your EMI amount. These details are your Loan Amount, Rate of Interest and Required Tenure (period of the loan). On feeding these details into the Loan EMI Calculator, you will get the results instantly.
All these details tend to change from one loan type to another. For example, the maximum tenure in the case of a personal loan can be 5 years while in case of a home loan, it can go up to 30 years. Let’s understand the functioning of Loan EMI Calculator with the help of an example.
Suppose an individual wants to opt for a personal loan amount of INR 7 lakh for 4 years at an interest rate of 11% per annum. So, on feeding these details into the Loan EMI Calculator, the EMI amount would come out as INR 18,092. This is the example in case of a personal loan. You can use this tool in case of any loan that has an EMI repayment method. The most important benefit of a Loan EMI calculator is you can make the right choice about a loan amount whether you would be able to afford it or not.
Loan Eligibility Calculator
“What is the maximum loan amount I can get?” – this is one of the most usual questions that borrowers ask. Before opting for any kind of loan, individuals want to know the maximum loan amount that they can get from a lender. Though lenders usually have a fixed minimum and maximum loan amount in every loan whether secured and unsecured loan, the final loan amount depends on several conditions.
So how can individuals get an idea about the eligible loan amount before opting for it? The answer to this question is the Loan Eligibility Calculator. This is a unique tool that helps people in estimating the maximum loan amount that they can get from a lender. To use this calculator, an individual needs a few basic details such as Age, Monthly Income, Existing Obligations, Tenure, Interest Rate and the Residing City. As soon as you will put all these details into the calculator, you will get the maximum loan amount within a second.
Let’s understand this through an example. Suppose an individual who is earning INR 50,000 wants to opt for a home loan for a tenure of 20 years at an interest rate of 6.95% per annum. He lives in Hyderabad and is currently paying a personal loan EMI of INR 10,000.
So on putting these details into the calculator, the eligible home loan amount is INR 16,18,541. According to this home loan amount, the EMI would be INR 12,500. You should remember that the Loan Eligibility Calculator does not give the final eligible loan amount but an indicative amount. The final loan amount will be decided by the lender according to various details such as monthly income, existing obligations, etc. An individual with high income and less to Nil obligations can get a higher loan amount as compared to an individual with low income and high current obligations.
Fixed Deposit Calculator
A large number of people like to deposit their hard-earned money for a fixed period to get an attractive interest via Fixed Deposit (FD). There are several banks and financial institutions that provide a wide range of FD schemes with which people can deposit their money safely for a period and frequency according to their convenience. Senior Citizens also get additional interest rates on their FD schemes. But before opening a Fixed Deposit account, individuals want to know how much maturity amount they can earn from the scheme.
That’s where an FD Calculator can help such individuals. With the help of this tool, you can know the maturity amount that you will get when the period completes. To use this calculator, you will only need a few basic details. These details are Total Investment Amount, Rate of Interest (fixed at the opening of the deposit) and tenure (7 days to maximum 10 years). On putting these details, the FD Calculator will provide you the maturity value.
Let’s understand this through an example. Suppose you want to open an FD of INR 50,000 for 6 years at an interest rate of 5.50% per annum. On putting these details, you will get the maturity value of INR 71,745. The interest amount will be INR 21,745.
Systematic Investment Plan (SIP) has emerged as one of the efficient and popular investment methods among customers. Simply put, an SIP is like an EMI, but a good EMI. Why good EMI? Because this amount is going to your pocket in the end, unlike loan EMIs where the EMI amount is going towards repayment. With the help of SIP, you invest a fixed amount for a fixed period at regular intervals in any mutual fund scheme. Like, you choose to invest INR 5000 every month for 10 years. So, the SIP amount is INR 5,000 in this case. Once the maturity period completes, you will get the return value with interest for this period.
So, how can you get an idea about the return amount when you have decided to park your funds via SIP? Well, you can use the Mutual Fund SIP Calculator to know the expected returns on your investment. The details you will need to use this tool are Monthly Investment, Number of years you want to invest in and rate of return. On feeding these details into the tool, you will get the Expected return amount. Let’s understand this via an example.
Suppose you decide to invest INR 3,000 per month for 10 years assuming the rate of return remains 12% per annum. On feeding these details into the SIP Calculator, you will get the return amount of INR 6,65,790. So, you can get an idea about the return amount with this tool.
Apart from the SIP investment, one of the other major investment methods in mutual fund schemes is Lumpsum Method. Unlike an SIP, individuals put a large sum of money one time for a fixed period. With the help of a Lumpsum Calculator, an individual can know the return amount on his or her investment.
Before knowing how a Lumpsum Calculator works, it is important to know that Lumpsum investment provides a wide range of returns — Absolute, Total, Annualised, Point to Point, Trailing, and Rolling Return. To get maximum benefits, an individual must know all these types of Lumpsum Returns. Coming back to Lumpsum Calculator, you will need a few basic details — Lumpsum Investment amount, Number of years, and the Rate of Return.
Suppose an individual wants to make a Lumpsum investment of INR 50,000 for 10 years assuming the rate of return remains 12% per annum. On putting these details into the Lumpsum Calculator, the return amount will be INR 1,55,292.
If we were to put it simply, the Systematic Withdrawal Plan (SWP) is exactly the opposite of SIP. In an SIP, you invest a fixed amount every month while SWP allows you to withdraw a pre-decided amount every month. SWP is perfect for those individuals who have a large sum of money to invest and want to withdraw a fixed amount every month for their expenses. This helps you in growing your idle money. But many people have this confusion about how much money they should withdraw every month from their investment?
SWP Calculator helps you in making the right decision about it. To use the SWP Calculator, you will need the total investment amount, the money you want to withdraw every month, the expected rate of return, and tenure. On putting these details, the SWP Calculator will provide the final value that you will get after the maturity.
Let’s understand this via an example. An individual wants to invest INR 50,000 for a tenure of 1 year with a withdrawal of INR 500 per month. The expected rate of return is 12% per annum. According to these details, the individual will get a final value of INR 49,677 after one year. Other than this, you will also get a table mentioning the balance amount, withdrawals, and interest earned each month.
Systematic Transfer Plan (STP) is one of the lesser-known features of mutual funds. But this is one of the most important things that an individual should know. STP allows investors to transfer the investment amount between two mutual funds within the same Asset Management Company. Like you can transfer a part of your lumpsum investment in some equity scheme to a debt mutual fund scheme in a volatile market situation and vice versa, according to your risk appetite and investment goals. This transfer can be done regularly.
STP Calculator helps individuals in estimating the amount of the return while transferring from one scheme to another. You will need a few simple details to use the STP Calculator. These details are Scheme name that you want to get transferred, initial amount, transfer amount, STP Date, period (monthly/quarterly), Starting Date and Ending Date. On putting these details, you will get the Return amount.