In these times of mortgages, loans, finances, insurances it is very appropriate that our spending power is also calculated precisely to avoid any unpleasant situations. The most basic question that comes to ones mind when a loan application is made is how is that loan going to be paid of? How much has to be kept aside each month to comfortably manage the household budget as well as the loan repayment. The best made financial decisions not only give us financial freedom but also helps us achieve our financial goals.
There are many categories of finance calculators like mortgage calculators, loan repayment calculators, retirement savings calculators, etc. Many such calculators are available online some for free and some for a fee. The best finance calculator is the one which guides you step by step through all your financial matters whether it is a loan or whether it is budgeting.
Most finance calculators take the following fields into consideration like the present value of the commodity, the future value of the commodity, number of installments, amount payable, and the interest rate. These fields are more or less the same for mortgages, loans, insurance, credit cards, etc. The best finance calculator is the one who can help in managing monthly budget, compare the costs of borrowing and help in planning the future.
Finance calculators are in fact the finance planning tools because they actually guide you through each and every financial aspect of business as well as personal income for e.g. they can tell what is the purchasing power of an individual, it calculates monthly mortgage, it calculates and helps in deciding if a mortgage refinance is required at a lower rate, it calculates the current value of the house, it gives us the estimated future value of our house, how much insurance cover is required for the house, whether it is feasible to buy a house or rent it, so on and so forth. The best finance calculator is the one which can do all these and more.
Financial calculation is not complicated mathematical derivation on the contrary it is simple and with technology advancing, best finance calculators are available as plug ins, downloads, ready to use calculators by many financial consultancy firms and also private financial consultants. In short the best finance calculator will fall into four stages namely assess current wealth, manage personal debts, manage personal investment, and plan the future.