Make Well-informed Decisions Regarding Your Financial Goals
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For calculating the future value, you need to do the following things –
If you are one of those who want to know the amount that you need to invest every month in reaching the financial goal, then you will have to do the following things—
The Future Value (FV) will be the accumulated corpus as a financial goal. The formula to calculate the financial plan is
FV = PV (1+R)^N
FV represents Future Value
PV represents Present Value
R represents Expected Inflation Rate
N represents the Duration of the investment.
Here is an example.
The value of the financial goal in today’s time is Rs. 15 lakh.
You need the amount after 10 years. Let’s take an expected rate of inflation of 5%.
PV = Rs. 15,00,000 , R = 5% , N = 12 years
FV= 15,00,000 (1+0.05)^12 = Rs 26,93,784
Now, you may want to calculate how much money you should invest every month for the accumulated corpus. The Expected Rate of Return on investment is at 6% every year.
The Future Value is 0 based on the calculation of Rs 26,93,784 done earlier.
Let the Expected Return from Investment= 6%
You will need to invest Rs. 12,818 every month.
The PMT Function is helpful for this calculation. You will get it in the Excel Calculator.
You can choose the right financial instrument.
You can know how much you have to invest.
You can decide on your budget expenses.
You will get to know the future value of your financial goal.
You can use the financial goal calculator to calculate your different financial goals like Personalized, Children’s Marriage, Children’s Education, and Retirement.
You can use the calculator multiple times for free.
Value at Risk (VaR) Margin Calculator allows you to calculate the probability of maximum loss on an investment.