Unlike basic calculators that only help you compute numbers, financial calculators can do so much more. As a matter of fact, they serve a completely different purpose. One of their primary objectives is to help determine the amount of return that you’re likely to get from an investment. That said, this isn’t the only benefit that financial calculators offer. There are other useful advantages as well. Here’s a quick look at the different ways in which such calculators can be useful to you.
As you’ve already seen above, the primary use of a financial calculator is to help you determine the returns or debt obligations of an investment or a loan. In the case of loans, financial calculators can help you identify the amount of interest that you would be paying and the amount of EMI that you would have to pay to service the loan. And in the case of investments, these online calculators are designed to let you know the interest that you’re likely to earn and the maturity amount of the investment.
By using financial calculators to calculate your returns or your debt obligations, you can effectively plan your investments or loans. For instance, let’s say that you wish to earn Rs. 10 lakhs through an investment in 10 years. Using an online calculator, you can find out just how much you would have to invest each month. With this knowledge, you can plan your investments in such a way that you reach your financial goals in the most effective and efficient manner.
One of the major advantages of using financial calculators is that they’re extremely simple to understand and use. Also, such calculators are very straightforward and only require you to enter the values in the respective fields. That’s not all. You can find a wide range of financial calculators online, which are completely free to use as well.
With the right formula, it is possible to manually calculate the returns of an investment or the obligations of a loan or debt facility. However, it can be very time consuming and may lead to errors or computational mistakes. A financial calculator, on the other hand, not only saves you a lot of time and effort by providing you with the results instantaneously, but is also accurate every single time.
Now that you’re aware of the various uses and advantages of financial calculators, remember to use one before you take out a loan or plan an investment. If you’re interested in making a worthwhile investment, the stock market is an option that you can consider. You can start by investing in a mutual fund or look to gain an early advantage by investing in an upcoming IPO; the choice is endless.
That said, make sure that you have a demat account in your name before proceeding to invest in the stock market. If you don’t have one, don’t worry. Simply visit the website of Motilal Oswal to open a demat account and a trading account in just a few minutes.
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