A house planning calculator is a financial tool or online application designed to help individuals and families plan and budget for buying a house. It aids in figuring out the necessary amount of money to save and invest in order to meet your financial objective. The house planning calculator works on the future value formula which is:

FV= PV (1+r) ^n

FV= future cost of house
PV= Present cost of house
r= rate of interest
n= Years between today and year of purchasing house

How does the house planning calculator work?

Imagine you have a dream house that's currently priced at Rs. 1,00,00,000 and you plan to purchase it in 7 years. Considering an expected inflation rate of 8% and a rate of return of 12%, you can estimate the future value of the house using this formula:

Future Value (FV) = Rs. 1,00,00,000 * (1 + 0.08) ^ 7

After 7 years, the estimated future cost of the house would be Rs. 1.7 crores. This calculation takes into account the initial cost of the house, the expected rate of inflation, the anticipated rate of return on your investments, and the time horizon for your purchase. You can use this information to create a personalized investment plan to reach your goal.

Benefits of house planning calculator:

  • It provides a clear estimate of the future cost of the house, taking into account inflation and investment returns.
  • It guides you in choosing the right investment strategy to achieve your goal. You can make informed decisions about where to invest your money to maximize returns.
  • You can easily find it and access it online.
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