No doubt, technology is ubiquitous in the presence and timeless in importance. It has changed the lives of humans in every field. From the birth of a child to the launch of a satellite or detection of disease, everywhere technology is irreplaceable — no need to mention that it has now entered our financial lives too. From transferring funds to borrowing funds from a lender, everything happens through financial tools. They are the advanced forms of technological development that have taken place in the finance industry.
From our concerns on a pension to loan repayments, we need a smart tool to calculate things correctly.
CALCULATORS are great financial tools that help people make confident financial decisions. They work efficiently only due to the backing of technology. The automation and artificial intelligence that the new advancement has bestowed on us is the fuel for the financial tools. Calculators use both to give you almost perfect results. Besides, FinTech is the latest example of the extreme strength of technology.
Here are the few types of calculators that come to use in our day-to-day life. If they do not help us make calculations, our financial decisions may become difficult.
Pension cost calculator – As you can understand with the name, the pension cost calculator calculates the cost of pension according to the age and how much you need to save each month. However, the provided figures are for the estimation, but at least you can decide the direction where you need to move.
The calculator asks the following things –
- Current age –
- Retirement age –
- Male or Female –
- Current annual earnings –
- Lump-sum pension payment –
- Value of existing pension fund –
- Estimated annual investment return –
- Probable product charges per annum –
- Estimated pension –
Annuity calculator – It helps to know the current value of an annuity. The actual figures vary depending on individual circumstances. The people with plans for investment or insurance use this calculator to know the possibilities of the future.
Provide the following details –
- Enter the amount you need to withdraw each month –
- The expected annual interest rate you want to earn –
- Mention the number of years for which you want to make monthly withdrawals (e.g. 15) –
- The amount you need to save –
Loan repayment calculator – It is an excellent way to calculate the monthly payments you need to pay for a loan. Like other types of calculators, the result provided is an estimation as always, but you get a ‘near to perfect’ idea. Not all but few lenders such as British-lenders.uk provide this on their websites to facilitate personal loans to the borrowers in the UK.
It requires the following details –
- Loan amount –
- Repayment period –
- Interest rate (e.g., 8.25) –
- Payment per month –
Lump-sum investment calculator – If you want to know the expected return on investment then this is your support system. The calculator used for varied types of investment products. You need to submit the following information.
- Lump-sum –
- Duration of investment (e.g., 20) –
- Expected rate of return (e.g., 5.0) –
- Charges –
- Expected return –
Share Stamp duty calculator – As the name gives the idea, the calculator used when you purchase shares. While making a final decision this calculator is one of the most important things that you should consider after the study of market risks.
The required information is as follows –
- Number of shares purchased –
- Price per share (e.g. 5.26.) –
- Total Price –
- Stamp duty payable –
Mortgage Affordability Calculator – This is quite common, and you know very well about this. This tool is used to calculate your affordability against the amount you apply for, Different lenders have a different rate of interest, and thus the results too can be changed –
You need to fill the following information –
- Net monthly salary –
- Partner’s net monthly salary –
- Other monthly income –
- Total income –
- Expenses –
- Credit card –
- Council tax –
- Life assurance –
- Savings/pensions etc –
- Total monthly expenses –
- Spare income each month –
The above types facilitate ease in different aspects of financial life. There is no disinclination in accepting the fact that money is the magnet of the human world. The calculators provide that support and make sure that you take only the right decision.