First take into account your total income. This is simply the starting point of the process and involves doing an honest and accurate calculation of your annual and monthly income.
See exactly how much of it is taxable. Your entire take-home pay is not taxable. Some parts of your salary, like allowances for house rent or travel, are not taxable. On the other hand, any profit you make from your investments could add to your taxable income. Thus, understanding your actual taxable income is a must.
Avail deductions to reduce your total taxable income. This can be done through structuring your salary and planning your investments right. For example, profits from a debt fund held for over three years is taxed at 20% after indexation. Interest from a fixed deposit, on the other hand, is taxed at the same rate as your income tax. So if you fall in the 30% bracket, debt funds may be a more tax-friendly option for you.
Lastly, invest some money in tax-saving instruments. For this, you will need to read up on Section 80 of the Income Tax Act. This mentions all tax-related rules. There are many investment options that are available for effective tax planning like Provident Public Fund (PPF), Equity Linked Saving Schemes (ELSS) or National Saving Certificates (NSC). Even your life insurance , health insurance and home loan payments can help you avail tax savings.
This calculator easily answers the question "If I save 'X' amount for 'Y' months what will the value be at
the end?" The user enters the "Periodic Savings Amount" (amount saved or invested every month); the
"Number
of Months" and the "Annual Interest Rate" or the annual rate of return one expects to earn on
their
investments. The calculator quickly creates a savings schedule and a set of charts that will help the user see the
relationship between the amount invested and the return on the investment. The schedule can be copied and pasted
to
Excel, if desired. The investment term is always expressed in months. If you need a more advanced "Savings Calculator" — one that lets the user solve for the
starting
amount, the amount to invest, the interest rate, the term required to reach a goal or the future value; or if
you
would like to easily print the schedule; or if you need to pick a different investment frequency, then you may
want
to try the calculator located here: https:/financial-calculators.com/savings-calculator All calculators will remember your choice. You may also
change it at any
time.
Clicking
"Save changes" will cause the calculator to reload. Your
edits will be
lost.
Savings Calculator — calculate future value
Currency and Date Conventions
You can calculate the mortgage loan amount from the price of the real estate by providing the down payment
percentage. If you know the mortgage amount you can afford and the cash down payment percentage required, you can calculate
the affordable real estate price. Or if you know the price of the real estate and the loan amout and enter "0" for the down payment
percentage, the calculator will calculate the down payment amount and percentage. Points, Annual Property Taxes, Annual Insurance and Private Mortgage Ins. (PMI) are all optional. If you enter
values, the periodic portion of each will be calculated and shown on the schedule. Property taxes and insurance
are combined under escrow. If a borrower does not have cash to cover at least 20% of the purchase price, some lenders will require the
borrower to purchase private mortgage insurance (PMI) to cover against a possible default. Premiums are
typically 0.5% to 2.0% of the original loan amount. The borrower can drop the insurance coverage once the
mortgage balance is less than 80% of the original purchase price. The calculator handles this automatically.
(There may be other conditions as well under which the lender will no longer require PMI. One such case might be
apprciation of the real estate.) Points are charges that are normally due at closing. Borrowers (normally only in USA) may select to pay a
lender "points" up front in exchange for a lower interest rate. Points are expressed in percent and
are calculated on the amount borrowed. 3 points on a $200,000 mortgage equals $6,000. If the user enters points,
this calculator includes their value in the summary and as part of the total payment at loan origination on the
payment schedule. The term (duration) of the loan is expressed as a number of months. Need more options including the ability to solve for other unknowns, change payment / compounding frequency and
the ability to print an amortization schedule? Please visit,
https://financial-calculators.com/mortgage-calculator
All calculators will remember your choice. You may also
change it at any
time.
Clicking
"Save changes" will cause the calculator to reload. Your
edits will be
lost.
Mortgage Calculator Help
Currency and Date Conventions
This calculator easily answers the question "If I save 'X' amount for 'Y' months what will the value be at
the end?" The user enters the "Periodic Savings Amount" (amount saved or invested every month); the
"Number
of Months" and the "Annual Interest Rate" or the annual rate of return one expects to earn on
their
investments. The calculator quickly creates a savings schedule and a set of charts that will help the user see the
relationship between the amount invested and the return on the investment. The schedule can be copied and pasted
to
Excel, if desired. The investment term is always expressed in months. If you need a more advanced "Savings Calculator" — one that lets the user solve for the
starting
amount, the amount to invest, the interest rate, the term required to reach a goal or the future value; or if
you
would like to easily print the schedule; or if you need to pick a different investment frequency, then you may
want
to try the calculator located here: https:/financial-calculators.com/savings-calculator All calculators will remember your choice. You may also
change it at any
time.
Clicking
"Save changes" will cause the calculator to reload. Your
edits will be
lost.
Savings Calculator — calculate future value
Currency and Date Conventions
This calculator easily answers the question "Given the value of my current investments how much do I need
to
save each month to reach my retirement goal?" The user enters their "Current Age", there expected "Retirement Age", the "Annual
Interest Rate (ROI)" (annualized Return on Investment one expects to earn) and "Amount Desired At
Retirement". The calculator quickly calculates the required monthly investment amount and creates an investment
schedule plus a set of charts that will help the user see the relationship between the amount invested and the
return on the investment. The schedule can be copied and pasted to Excel, if desired. If you need a more advanced "Retirement Calculator" — one that calculates many more unknowns
and
one that calculates assuming retirement income and not a final lump sum then try the calculator located
here: https:/financial-calculators.com/retirement-calculator All calculators will remember your choice. You may also change it at any time.
Clicking
"Save changes" will cause the calculator to reload. Your edits will be lost.
Retirement Savings Calculator — calculate savings required to reach retirement goal
Currency and Date Conventions
This calculator easily answers the question "Given the value of my current investments and assuming future
monthly investments of "X", at what age will I reach my retirement goal?" The user enters their "Current Age", the "Monthly Amount Invested",the "Annual
Interest Rate (ROI)" (annualized Return on Investment one expects to earn) and "Amount Desired At
Retirement". The calculator quickly calculates the user's retirement age and creates an investment schedule
plus a set of charts that will help the user see the relationship between the amount invested and the return on
the investment. The schedule can be copied and pasted to Excel, if desired. If you need a more advanced "Retirement Calculator" — one that calculates many more unknowns
and one that calculates assuming retirement income and not a final lump sum then try the calculator
located here: https:/financial-calculators.com/retirement-calculator All calculators will remember your choice. You may also
change it at any
time.
Clicking
"Save changes" will cause the calculator to reload. Your
edits will be
lost.
Retirement Calculator — calculate retirement age
Currency and Date Conventions
Using the calculator is straight forward. User enters a "loan amount", "number of months",
"annual interest rate". The calculator calculates the number of monthly payments. The "Payment Method" determines when the first payment is due. With the default selection,
"End-of-Period", the first payment will be due one month after the loan is made. If
"Start-of-Period" is selected, then the first payment will be due on the loan date. The term (duration) of the loan is expressed as a number of months. Need more options including the ability to solve for other unknowns, change payment / compounding
frequency and the ability to print an amortization schedule? Please visit,
https://financial-calculators.com/loan-calculator
All calculators will remember your choice. You may also
change it at any
time.
Clicking
"Save changes" will cause the calculator to reload. Your
edits will be
lost.
Currency and Date Conventions