Heavenly Economics

As Christians, we live in God's economy and not in the worldly economy!

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Financial Tools and Calculators

Credit Card Debt

College Savings

Mortgage and Home Ownership

Payroll and Personal Budget

Personal and Auto Loans

Personal Wealth and Insurance

Retirement

Savings and Investments

Detailed List of Calculators

 

1. Invested Future Value (Monthly). If you create and stick to a savings plan, how much money will you have in the future? For example, if you currently have $10,000 in the bank and plan on saving $1,000 every month at a 10% rate of return bank account or investment, how much will you have in 10 years? What if you saved $1,500 every month instead, and if interest rates go up to 10.75%? This Invested Future Value (Monthly) model is useful to help you customize a savings plan. There are already some sample inputs as well as a sample table and chart to help you get started. You can enter in your own input assumptions and you can change the table and chart settings in the model.

 

2. Invested Future Value (Annually). If you create and stick to a savings plan, how much money will you have in the future? For example, if you currently have $100,000 in the bank and plan on saving $10,000 every year at a 10% rate of return bank account or investment, how much will you have in 10 years? What if you saved $15,000 every year instead, and if interest rates go up to 10.75%? This Invested Future Value (Annual) model is useful to help you customize a savings plan. There are already some sample inputs as well as a sample table and chart to help you get started. You can enter in your own input assumptions and you can change the table and chart settings in the model.

 

3. Future Value of Savings and Investments. If you create and stick to a savings plan, how much money will you have in the future? For example, if you currently have $10,000 in the bank and plan on saving $1,000 every month at a 10% rate of return bank account or investment, how much will you have in 10 years? What if you saved $1,350 every week instead, and if interest rates go up to 10.5%? This Future Value of Savings model is useful to help you customize a savings plan. There are already some sample inputs as well as a sample table and chart to help you get started. You can enter in your own input assumptions and you can change the table and chart settings in the model.

 

4. Savings and Investments Required. If you are trying to create a savings plan such that you will have a certain amount in the future, how much money will you have to save periodically? For example, if you wish to retire in 10 years and require $1 million, how much money do you need to save every month in an investment account yielding 10% per year? What about saving for your child's college fees or saving for the dream house or some home upgrades? This Savings and Investments Required model is useful to help you customize such a savings plan. There are already some sample inputs as well as a sample table and chart to help you get started. You can enter in your own input assumptions and you can change the table and chart settings in the model.

 

5. Savings and Investment Time Required. If you are trying to create a savings plan such that you will have a certain amount in the future and you know how much money will you be saving periodically, how long will it take for you to reach your goal? For example, if you wish to save $1 million by putting in $1,000 per month in a 10% investment fund, how long do you need to save before you hit your goal? This Savings and Investment Time Required model is useful to help you customize such a savings plan. There are already some sample inputs as well as a sample table and chart to help you get started. You can enter in your own input assumptions and you can change the table and chart settings in the model.

 

6. Savings and Investment Rate of Return Required. If you are trying to create a savings plan such that you will have a certain amount in the future and you know how much money will you be saving periodically for a certain time period, what types of rate of return or interest rate do you need to achieve your goal? This Savings and Investment Rate of Return Required model is useful to help you customize such a savings plan. There are already some sample inputs as well as a sample table and chart to help you get started. You can enter in your own input assumptions and you can change the table and chart settings in the model.

 

7. Mortgage Monthly Payments. How large of a house can I afford? What are the monthly payments required for my mortgage? What happens when interest rates increase? These are some typical issues faced by homeowners and people looking at purchasing a home. The tools here allow you to easily and quickly answer these questions without requiring any advanced financial knowledge. This model is used to compute how much the monthly mortgage payments will be given the desired mortgage amount, the maturity of the mortgage (typically 30 to 40 years), and the fixed mortgage interest rate (typically between 5% and 12%). A table with various scenarios of mortgage amounts and interest rates are shown, and the values in the table are the required monthly payments. Using this table, you can better judge what type of a home is most suited for your current budget. You can change the table's settings on your own to play with other scenarios and conditions.

 

8. Mortgage Amount. How large of a house can I afford? What are the monthly payments required for my mortgage? What happens when interest rates increase? These are some typical issues faced by homeowners and people looking at purchasing a home. The Mortgage Amount model allows you to easily and quickly answer these questions without requiring any advanced financial knowledge. This model is used to compute how much mortgage you can qualify for given how much monthly payment you can afford, the length of the mortgage (typically 30 to 40 years), and the fixed mortgage interest rate (typically between 5% and 12%). A table with various scenarios of monthly mortgage payments and interest rates are shown, and the values in the table are the total mortgage you qualify for. Using this table, you can better judge what type of a home is most suited for your current budget. You can change the table's settings on your own to play with other scenarios and conditions.

 

9. Monthly Loan Payments. How large of a loan can I afford? What are the monthly payments required for the loan? What happens when interest rates increase? These are some typical issues faced by people looking at obtaining a new loan to buy a car, pay for school or other uses. The Monthly Loan Payments model allows you to easily and quickly answer these questions without requiring any advanced financial knowledge. This model computes the required monthly loan payments given the total loan taken out, the loan maturity and interest rate. A table with various scenarios of loan amounts and interest rates are shown, and the values in the table are the required monthly payments. Using this table, you can better judge what type of a loan is most suited for your monthly budget. You can change the table's settings on your own to play with other scenarios and conditions.

 

10. Loan Amount. How large of a loan can I afford? What are the monthly payments required for the loan? What happens when interest rates increase? These are some typical issues faced by people looking at obtaining a new loan to buy a car, pay for school or other uses. The tools here allow you to easily and quickly answer these questions without requiring any advanced financial knowledge. This model computes the loan amount you qualify for, given some monthly loan payments, the loan maturity and interest rate. A table with various scenarios of monthly loan payments and interest rates are shown, and the values in the table are the loan amounts you qualify for. Using this table, you can better judge what type of a loan is most suited for your monthly budget. You can change the table's settings on your own to play with other scenarios and conditions.

 

11. A Cool Million. What does it take to save a million dollars? This Cool Million model helps you answer that question. For instance, if you had $10,000 right now, how much money will you need to save per year for the next 30 years if you wish to hit a million dollars at some interest bearing account? But wait! A million dollars 30 years from now is not the same as a million dollars now due to inflationary pressures which will reduce your purchasing power. So, this model also allows for the correction of inflation. That is, you can now determine how much money you will need 30 years from now such that it would get you the same purchasing power as a million dollars today, and how much you will need to save per year to get there. The Nominal Annual Savings Required is the amount of money to invest per year to hit your million dollar target in the future, whereas the Inflation Adjusted Real Level of Future Amount is the amount your million dollar target in the future is really worth in today's purchasing power assuming some inflation rate. So, after adjusting for inflation, to maintain the same purchasing power as a million dollars today, the Inflation Adjusted Amount Required tells you how much money you will need in the future and the Inflation Adjusted Monthly Savings Required tells you how much needs to be saved per year to hit this inflation adjusted amount.

 

12. Mortgage Amortization Schedule. You always hear about people complaining about paying too much interest on mortgage payments or friends say that you should put a little extra into your loan or mortgage to speed up the payoff on your home. Well, this Mortgage Amortization Schedule model shows you how much you are really paying in terms of interest and how your mortgage is amortized (slowly paid off) over time. Make sure you also try out the Mortgage Accelerated Payoff model to see what happens when you put a little extra payment every month and how much interest you will be saving throughout the life of the mortgage and by how many years earlier you will pay off the mortgage. In an amortization schedule, you notice that the monthly payments are identical such that the remaining balance ends up as zero at the end of the mortgage life. Notice also that the principal paid per month increases and interest paid decreases over the life of the mortgage. This is because the monthly mortgage payment goes toward paying off the principal and interest on the remaining principal. Over time, as the principal of the mortgage is reduced, the interest on the remaining principal decreases. So, with the same monthly payment, a larger portion of the payment goes towards paying down the principal and less towards the interest.

 

13. Mortgage Accelerated Payoff. You always hear about biweekly mortgage payments or friends say that you should put a little extra into your loan or mortgage to speed up the payoff on your home. Well, this Mortgage Accelerated Payoff model shows you how much time and how much interest you will be saving if you put some extra money into paying off the mortgage every month. In an amortization schedule, you notice that the monthly payments are identical such that the remaining balance ends up as zero at the end of the mortgage life. Notice also that the principal paid per month increases and interest paid decreases over the life of the mortgage. This is because the monthly mortgage payment goes toward paying off the principal and interest on the remaining principal. Over time, as the principal of the mortgage is reduced, the interest on the remaining principal decreases. So, with the same monthly payment, a larger portion of the payment goes towards paying down the principal and less towards the interest. Notice that by paying a little extra each month, you can drastically reduce the total interest you actually pay throughout the life of the mortgage and cut down years from the life of the mortgage!

 

14. Credit Card Minimum Payoff. It is always advisable to pay off your entire credit card balance at the end of the month, however, sometimes it is not possible to do so due to budget constraints. The question we are trying to answer with this Credit Card Minimum Payoff model is to see how long it really takes to pay off the credit card balance at some specified interest rate, given some outstanding balance on the card and if only the required minimum balance is paid each month. This model also tells you how much interest you are actually paying on the credit card balance. Use the Credit Card Accelerated Payoff model to determine how much interest you save and how much quicker you can pay off your credit card balance if you pay a little extra each month!

 

15. Credit Card Accelerated Payoff. It is always advisable to pay off your entire credit card balance at the end of the month, however, sometimes it is not possible to do so due to budget constraints. The question we are trying to answer with this Credit Card Accelerated Payoff model is to see how long it really takes to pay off the credit card balance at some specified interest rate, given an outstanding balance on the card and if the required minimum balance is paid monthly versus if you paid some additional amount each month to help accelerate the payoff. You can see the amount of time you save as well as the total interest saved by paying a little extra each month towards the remaining principal! You actually save a bundle on interest by paying a little more monthly!

 

16. Debt Consolidation. If you have multiple debts (e.g., different credit cards and loans), you can attempt to consolidate these into a single lower interest loan. Sometimes the interest rate might be higher or lower than some of the other debt. So the question is, should you consolidate and if so, how much money do you end up saving in terms of monthly payments and total interest saved over the life of the loans? Sometimes there might be negative savings, which means the consolidated loan's terms (maturity and interest rates) actually make you lose money and you are better off looking for another consolidation plan. This way, you can compare consolidation plans and see the amount you end up saving.

 

17. Interest Rate Determination. Are you sure you are being charged the interest you are quoted or do you sometimes feel like you are being way overcharged? Well, your instincts are correct! Your quoted interest rate is just that, a quoted rate, but the fine print may say that the interest might be compounding daily, continuously or some other periods. In fact, you can determine how much more interest you are paying on an outstanding loan or credit card balance depending on the compounding periods for the stated interest.

 

18. Life Insurance. How much life insurance should you purchase? Actually, that is entirely up to you (personal preferences, discounts for higher coverage, higher protection for the family, and so forth), but this model will help you assess what the minimum amount should be such that your family will be able to maintain their existing lifestyle for the foreseeable future.

 

19. Buying versus Leasing a Car. Is it better to purchase or lease your car? It depends on many factors such as how much your lease payment is, the interest rate on a loan if you were to purchase your car, and the miscellaneous fees associated with leasing versus buying the car. Also, sometimes, if the car is used for business purposes, there might be some potential tax savings as well. Ultimately, it is up to you if you wish to own the car outright or prefer the ability to pay less each month and the luxury of changing cars every few years with a lease. We cannot help you with the psychological factors and advantages with each but what this model can do is to help you model out the financial ramifications of the decision.

 

20. Net Worth. What is your net worth? That is, how much are you worth if you liquidated all your assets and holdings to pay of all your debt and liabilities? Use this simple Net Worth model to determine your net worth after liabilities.

 

21. Mortgage Refinancing. Should you refinance your mortgage now that your fixed term is coming due and your mortgage rate might rise to a higher variable rate, or what if the prevailing market mortgage rate is lower than what you are currently paying? What about all the hidden fees and points to refinance? After everything is said and done, is it really worth it, and if so, how much do you really save? this Mortgage Refinancing model helps answers these questions. What about if you plan to sell the house in the near future? This resale plan will certainly factor into the cost savings (the longer you keep the house after refinancing, the more you save on interest payments after recouping the refinancing costs).

 

22. Buying versus Renting Your Home. Is it really better to buy your home or to rent? Well, it really depends on what type of house you are purchasing, the maintenance cost, rental price, down payment required for the house, the mortgage you will incur, are you retired empty nesters, just starting your career, and many other issues. This Buy versus Rent model helps you make this determination quickly to see if it is indeed more financially profitable to buy versus rent your home. We will leave the other psychological factors up to you!

 

23. Personal Monthly Budget. Do you realize where your money goes each month? Here is a quick monthly budget versus actual worksheet to help you track where your funds go each month, complete with a quick chart to show you the percentage expense allocation of your entire budget.

 

24. Payroll Calculation. When was the last time you looked at your pay stub and stared at it for hours on end and it still remains a mystery you cannot really understand or reconcile the numbers, so you give up and just leave it on faith that the computations are indeed correct? Well, try out this simple Payroll Calculation model and see if your payroll amount is similar. This model shows you how your payroll is actually calculated by entering some basic assumptions.

 

25. Conventional Mortgage Qualification Worksheet . How large a mortgage can you qualify for? It really depends on your income and any existing debt and debt payments. This Mortgage Qualification model helps you determine what you probably qualify for (of course each bank/lender might have their own specific requirements, special promotional rates and these things may change depending on the prevailing economic environment... nonetheless, this qualification model will provide you with a quick getting started approximation... you should always consult a professional lender for more exact results). The First Qualifying Number calculates your maximum monthly payment, assuming you have no long-term debt. It is computed by multiplying your monthly total income by your housing cost ratio. The Second Qualifying Number takes into account your monthly debt payments, applying your total debt service ratio. Mortgage companies usually qualify you for monthly payments that are no higher than the lesser of the two results. By default, this worksheet assumes a housing cost ratio of 0.28 and a total debt service ratio of 0.36, which are standards often used for conventional mortgages. If different ratios apply in your case, change the values appropriately. In all cases, your monthly payment will include principal and interest payments. However, in most cases, it will include a monthly escrow deposit to cover taxes and mortgage insurance, if any. Sometimes, homeowner's insurance is also included in this calculation. Finally, if you are buying a condominium or co-op unit, the monthly payment figure may also include your homeowner's dues and/or maintenance fees. You will need to estimate these monthly costs and enter them into the appropriate model inputs.

 

26. 401(k) Planner. If you participate in a 401(k) program and your employer contributes or has some matching funds, how much money will you have saved by the time you intend to retire? Use this quick 401(k) calculator to determine the amount you will have at retirement. This model also shows you the difference between a taxable versus a non-taxable investment. Clearly, this model assumes that the economic and financial conditions remain stable over time, and for more detailed analysis, please see a certified financial analysts or financial planner. Nonetheless, this model helps you gauge how much you will have saved by retirement. If you wish to also include the payouts during retirement, please see the Retirement Funding with Inflation Adjustment model for more details. Finally, you can also model a stochastic or dynamic interest rate of return environment using the Stochastic models.

 

27. Purchasing Power Adjustment. You always hear that a dollar today is not the same as a dollar tomorrow, or remember the infamous rhetorical question, "Remember the good old days what a dollar could buy?" Well, indeed, this is mainly (although not entirely) due to inflationary pressures. For instance, if something costs $100 today, how much would it have cost back in 1950? What about if it cost $100 in 1950, how much is it worth now? This purchasing power adjustment allows you to answer these questions and more. In fact, if you wish to save for retirement and you currently use $5,000 a month, at a 3% inflation rate, how much will you need in 10 years when you start to retire, the year after that, and so forth? The scenario table shows you how much a certain amount is worth in the future and back into the past.

 

28. Twin Retirement and Compounding Effects. You always hear people say invest and save early. Well, nothing is more accurate especially when it comes to saving for retirement, or any long-term investment, for that matter. This model shows a twin retirement situation. That is, if you had a twin, and one of you started to invest early and the other starts later, and assuming you both invest the same amount and face the same rate of return and risks, what are the differences in compounding effects between the both of you? That is, how much more money will you have if you started earlier? You will be astonished by the power of compounding and how starting a few years early can do to your savings!

 

29. College Funding with Inflation Adjustment. How much money do you need to start saving for your child's college? Well, the sooner the better! The earlier you start saving, the less monthly savings you will need to contribute towards that college fund. In this model, we look at what the current cost of attending college per year is, accounting for the inflation rate between now and the end of the college education, and some investment returns on your savings. You can also set the desired ending value of this college fund where you can set this value to $0 if you intend to only pay for the education, or some positive value if you wish to provide a cost buffer in case prices rise higher than expected, or to provide the fresh graduate some lump sum amount when s/he graduates (a nice car or apartment down payment, moving expenses, and so forth).

 

30. Retirement Funding with Inflation Adjustment. How soon do you need to start saving for your retirement? Well, the sooner the better! The earlier you start saving, the less monthly savings you will need to contribute towards your retirement fund. In this model, we look at your current salary and accounting for the inflation rate between now and the end of your natural life, and some investment returns on your savings, we can determine what is the minimum amount to save per year for retirement. You can also set the desired ending value of this retirement fund where you can set this value to $0 if you intend to exhaust the fund, or some positive value if you wish to provide a buffer amount in case inflation rises higher than expected, or to provide the family some lump sum amount to cover any unforeseen expenses. This model is built to intentionally not include any additional government sponsored programs (e.g., Social Security, Welfare, and so forth) because different countries have different rules, regulations and plans. Also, you can consider these plans as additional benefits above and beyond your retirement savings here.

 

Credits: These models were developed and powered by Real Options Valuation, Inc. and the Copyright 2008 is owned by Dr. Johnathan Mun. The models and analytics are developed by Dr. Johnathan Mun, Ph.D., MBA, MS, BS, CFC, FRM, MIFC, FRM (Founder and CEO of Real Options Valuation, Inc.). For more information on more advanced analytics and modeling techniques, please visit www.realoptionsvaluation.com

 

DEVELOPER SPECIFICALLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. As standard practice for software development and end-user applications, it is important for the Licensee to note that the valuation results attached herein are accurate to the software Developer’s best knowledge and are solely based on the information furnished by the Licensee or end-user. While the software Developer has used his best efforts in preparing this report, he makes no representations or warranties with respect to the accuracy or completeness of the contents of this model and specifically disclaims any implied warranties of merchantability of fitness for a particular purpose. The Licensee hereby agrees that the Developer is not held liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential or other damages. This model is only an illustration of using the software and in no way represents the correct and complete picture of an investor's investment, risk, and return profile. The user is advised to take great care in using and interpreting. Finally, legal, economic and financial conditions can change drastically, affecting the results shown. The user is well advised to use the results with his or her own judgment, and there is no substitute for seeking professional financial and legal advice.