LumpsumCalculator
If you invest in Mutual Funds then you may know about the
Lumpsum Calculator, if not then you will surely know about it from here. Let’s start with the basics, investment in Mutual Funds can be broadly classified into two types- lumpsum and Systematic Investment plan (also known as SIP).
- A lumpsum investment can be defined as investing a significant sum of money on a particular mutual fund scheme.
- SIP or Systematic Investment Plan, entails the investment of smaller amounts every month.
Lumpsum investments are particularly preferred by a majority of the investors, as there are lesser variables involved and the chances of returns are generally on the higher side. And to find out the estimated returns on the lumpsum mutual fund investment, a mutual fund lumpsum calculator can be a big help.
Lump-Sum Calculator determines the maturity amount of the one-time investment, after a defined number of years. You need to key in the amount to be invested, investment horizon in several years, and expected rate of return to ascertain the maturity amount and the earning on the investment. Lumpsum Calculator is all about giving a plan for the future with the most considered variations.
Formula to Calculate MF returns
All the available mutual fund lumpsum calculator uses a specific method to compute the estimated investment return. It is essentially a compound interest formula with one of the variables being the number of times the interest is compounded in a year.
The formula is as follows:
A = P (1 + r/n) ^ nt
The variables are mentioned in the table below:
| A | Estimate return |
| P | Present value |
| r | Rate of return |
| t | Duration of investment |
| n | Number of compounded interests in a year |
It has been provided that Lump sum investment has made high returns in history despite some minute losses. This process allows a final investor to invest some amount and grow it to a huge sum with planned investments. It is suggested that Mutual Funds investment must be done by having a good thorough study.
Advantages of Lumpsum Calculator
An ample number of benefits can be availed when it comes to the mutual fund lumpsum calculator, some of them are given below:
- Returns on mutual fund investments cannot be calculated accurately as they are subjected to market risks. A calculator provides you with the closest possible estimate.
- It enables you to plan your finances based on the estimated returns.
- It is an online tool, implying that you can use it at any time from any place. It eliminates time and space constraints.
- It saves your time and effort, as these calculations can take several minutes. Doing calculations manually for more than one variable can take hours.
Personal Loan EMI Calculator
Money plays a vital role in turning out our dreams into reality. There are times when a lack of money acts as a hurdle on our special occasions, but one should remember that there are several ways through which we can overcome these financial problems. One such quick solution is taking a loan. A major portion of all loans comes under personal loans. Primarily with the ease of availability and flexible options, it is an offer of immediate financial relief. But once a borrower has taken a loan, then one more term takes place in their lives i.e. EMI. This term could be new for many, so let’s understand this from basic.
EMI is the abbreviation of Equated Monthly Installment. It is the amount that a borroweris required to pay in order to repay the borrowed amount.
Formula to Calculate EMI
Generally, lenders use the below provided mathematical formula to calculate the personal loan EMI.
P x R x (1+R)^N] / [(1+R)^N-1]
Where
| P | Principal or Loan Amount |
| R | Rate of Interest |
| N | Loan Tenure |
- Personal Loan Tenure
This is the time allotted by the lender for repaying the loan amount. You can choose any tenure ranging from 12 to 60 months. The longer the loan tenure is, the lower is the EMI.
- Personal Loan amount
This is the amount you wish to borrow from the lender and then calculate the interest payable on this amount. You will have to spend more on EMIs if you opt for a higher loan amount. The lender considers parameters such as your income level, repayment history, and credit profile before deciding on the personal loan amount to approve. You can know about the most suitable EMI beforehand.
- Personal loan Interest Rate
The rate of interest charged on a personal loan is one of the most important components in the process of EMI calculation. Generally, the higher rate of interest attracts the high amount of EMI. These rates may vary from borrower to borrower, as per their credit profiles and other related parameters.
Advantages ofa Personal Loan EMI Calculator
- Convenient to use– It eases you with the calculations as compared to the calculations done by hand with pen and paper. it hardly takes a minute to provide you the result.
- Graphical Representation –The advanced technology has made the results of EMI calculator easy to understand. As now days apart from the EMI result it also shows you the other loan details with a graphical representation based on the provided information.
- Quick Solution– Manual EMI calculation will take hours and hours. But, with an online EMI calculator, you can perform this task at a few clicks of the mouse. You don’t have to check and recheck the calculations each time with the online EMI calculators.
- Specific Result– One of the biggest benefits of an online EMI calculator is that it gives a specific result based on the loan amount, repayment tenure, and interest rates.
Tips to manage the Personal Loan EMI
- Ascertain the repayment capability: You should always acquire only that much personal loan as much you can afford the paying off every month. An online personal loan EMI calculator helps to calculate the personal loan EMIs better. By doing this you would know in advance about the EMI and you can make a better and informed decision.
- Never miss on an EMI: The regular payment of the EMI can help you to have a good credit score. As this would lead to getting personal loans at comparatively lower interest rates. You should always try to maintain a good credit score by making timely payments of all debts like credit card bills, existing loans, etc. on time so that you can get a good personal loan deal. Timely payment of the EMIs is important.
- Go for a longer repayment tenure: Your loan repayment tenure has a direct impact on the EMI amount of your loan.
Lastly, whether it is an investment or a personal loan before taking any step make sure to do a in depth research and also plan wisely.
