Financial Calculators & Tools
Essential calculations for smart money decisions - with guidance on how to use them
Investment Compound Calculator
Long-term Wealth
The most important calculation for building wealth. Shows how money grows over time with compound returns. Key inputs: initial amount, monthly contributions, expected return rate, time horizon. I use conservative estimates (6-7% for shares) rather than optimistic ones. The real insight comes from playing with the time variable - starting 5 years earlier often matters more than higher returns. Use this to see why starting early beats waiting for the 'perfect' time to invest.
Property Investment Calculator
Real Estate Analysis
Essential for evaluating rental properties. Calculate gross yield (annual rent ÷ purchase price), net yield (after expenses), cash flow (income minus all costs), and total return (yield + capital growth). Don't forget: rates, insurance, maintenance, vacancy periods, and management fees. I use this to compare properties and ensure positive cash flow. Rule of thumb: gross yield above 5% for Australian capital cities, above 7% for regional areas.
Superannuation Calculator
Retirement Planning
Projects your super balance at retirement based on current balance, contributions, and expected returns. Key strategy: maximize concessional contributions (currently $30k/year) through salary sacrifice. The tax advantage is significant - you pay 15% tax instead of your marginal rate. I use this to model different contribution strategies and retirement ages. Small increases in contributions compound dramatically over decades. Essential for retirement planning.
Expected Value Calculator
Decision Analysis
Mathematical approach to risky decisions. For each possible outcome, multiply probability by payoff, then sum all results. Example: 70% chance of $100 gain, 30% chance of $200 loss = (0.7 × $100) + (0.3 × -$200) = $10 expected value. I use this for business decisions, investment opportunities, and career moves. Helps remove emotion from uncertain decisions. Remember: expected value is long-term average, not guaranteed outcome.
FIRE Calculator
Financial Independence
Calculate your path to financial independence and early retirement. Based on the 4% rule: you need 25x your annual expenses invested to retire safely. Input current savings, monthly savings rate, expected returns, and current expenses. I use this to model different scenarios and see how lifestyle changes affect retirement timeline. Key insight: expenses matter more than income. Reducing expenses has double benefit - less money needed and more available to save.
Debt Payoff Calculator
Debt Strategy
Compare debt payoff strategies: snowball (smallest balance first) vs avalanche (highest interest first). Avalanche saves more money mathematically, but snowball provides psychological wins. I prefer avalanche for disciplined people, snowball for those needing motivation. Key insight: any extra payment dramatically reduces total interest. Even $50/month extra on a mortgage saves thousands. Use this to see the real cost of minimum payments.