Savings Calculator: Calculate Savings and Returns | HDFC Life

1. Savings Calculator

2. Savings Calculator A savings calculator is a simple online tool that shows how your savings can grow over time depending on your monthly contributions, chosen interest rate and savings duration. It assists you in setting and tracking financial goals such as retirement, children’s higher education/wedding or buying a flat.By simply adjusting four important inputs, namely, savings amount, return rate, time period and savings frequency you can quickly see how your savings build. This makes it easier for you to strike a comparative analysis among distinct strategies, stay motivated and make prudent financial decisions for a secure and prosperous tomorrow. 

3. What is Savings Calculator? A savings calculator is a handy online tool that allows you to estimate the amount you should save yearly or monthly to attain your desired financial goals. This calculation depends on the amount you have kept aside for savings. The calculator considers the investment duration, interval (monthly/yearly) and the interest rate on investment to determine your savings. Similarly, a life insurance calculator can help you estimate the right life insurance coverage you need, considering your financial goals and family responsibilities. Using both tools together ensures that your savings and insurance plans align with your long-term financial security. To find out your net savings, type in the desired amount you want to save, investment time horizon, and annual interest rate. Thus, the calculator tells you how much you should keep aside each month for attaining your financial goals. This might include saving for vacation or post-retirement days based on the future value of your savings. Not only this, but this tool also helps you understand how saving regularly in small amounts can add up over time.

4. How do Savings Calculators Work? So, do you know how do savings calculators work? So, let’s illustrate the working of monthly savings calculator with the help of an example. Let’s assume you need a sum of Rs 10 lakh in ten years. An annualized rate of return of 8% has been assumed with respect to the investment, and you have not saved any money toward the financial objective at this time. You may use the PMT Function in the savings calculator India, where you enter the rate = 8/100/12. (Convert to monthly rate). The investment period must be computed in months: 10 * 12 = 120 months. Indicate that Present Value = 0 and Future Value = Rs 10,000,000 The savings calculator calculates the monthly investment necessary to achieve the financial objective, which will be Rs 5,430.

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