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    Cost of Funds Calculator

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    callmetarantula
    This document is a cost of funds worksheet that helps calculate how much money is needed to fund a future expenditure goal. It requests information about the goal such as time period until needed, expected inflation rate, current and projected future costs, expected returns on current investments, and calculates the additional annual or monthly savings needed to meet the goal based on inflation and expected rates of return over the time period. An example is provided to illustrate how to fill out the worksheet.

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    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd

    Cost of Funds Calculator

    Uploaded by

    callmetarantula
    2K views2 pages
    This document is a cost of funds worksheet that helps calculate how much money is needed to fund a future expenditure goal. It requests information about the goal such as time period until needed, expected inflation rate, current and projected future costs, expected returns on current investments, and calculates the additional annual or monthly savings needed to meet the goal based on inflation and expected rates of return over the time period. An example is provided to illustrate how to fill out the worksheet.

    Original Description:

    Calculator on working out funds required for any particular purchase

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    © Attribution Non-Commercial (BY-NC)

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    This document is a cost of funds worksheet that helps calculate how much money is needed to fund a future expenditure goal. It requests information about the goal such as time period until needed, expected inflation rate, current and projected future costs, expected returns on current investments, and calculates the additional annual or monthly savings needed to meet the goal based on inflation and expected rates of return over the time period. An example is provided to illustrate how to fill out the worksheet.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    2K views2 pages

    Cost of Funds Calculator

    Uploaded by

    callmetarantula
    This document is a cost of funds worksheet that helps calculate how much money is needed to fund a future expenditure goal. It requests information about the goal such as time period until needed, expected inflation rate, current and projected future costs, expected returns on current investments, and calculates the additional annual or monthly savings needed to meet the goal based on inflation and expected rates of return over the time period. An example is provided to illustrate how to fill out the worksheet.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    You are on page 1of 2

    COST OF FUNDS WORKSHEET

    How much money do I need for a particular requirement?

    Ser. No.

    Period of requirement of funds

    1 In how many years do you expect to require the funds?

    2 Estimated period these funds will be needed for


    For example, if it is for your post-graduate course, it may be two years. This example is for a child's four year under-graduate
    course, ten years hence.

    Future Cost after the above period

    3 What is the requirement of Funds at present cost?

    4 Estimated Inflation Level

    5 Inflation Factor based on number of years left until your expenditure and the estimated Inflation level

    7 Your Future Cost

    Income in this period

    How much money do you expect to receive from your EPF/ PPF/ DSOPF/ Pension Plan/ Gratuity/ Other Investment during this
    8
    period for this particular purpose

    9 What amount are you keeping aside annually - for this purpose alone?

    10 Total funds accumulated

    11 Any other fund sources (such as loans, gifts, etc.)

    12 Total funds available

    Expenditure Goal

    13 Your funds goal

    How much money do I need to put aside each year from now onwards to reach my goal?

    14 What are your current investments made exclusively for this expenditure?

    15 What return do you expect on these investments (not adjusted for inflation)?

    It would typically range from 2% for Savings Bank to 18% for equity(over 20-25 year periods)

    16 Actual return after adjusting for estimated inflation

    17 Assumed Rate of Return Factor based on number of years until your expenditure

    18 Projected values of current investment

    19 Shortfall :your expenditure goal shortfall

    20 Discount Factor based on expected rates of return & inflation and years to expenditure
    21 The additional ANNUAL savings you need to make to reach your expenditure goal

    21 The additional MONTHLY savings you need to make to reach your expenditure goal
    Example Yourself

    10 22

    4 1

    Rs. 500,000 Rs. 4,000,000

    6% 7%
    1.79 (10 yrs & 6%
    4.43
    inflation)
    Rs. 895,000 Rs. 17,720,000

    Rs. 3,580,000 Rs. 17,720,000

    Rs. 500,000 Rs. 100,000

    Rs. 200,000 Rs. 100,000

    Rs. 800,000 Rs. 2,200,000

    Rs. 2,100,000

    Rs. 1,300,000 Rs. 4,400,000

    Rs. 2,280,000 Rs. 13,320,000

    Rs. 100,000 Rs. 100,000

    12% 12%

    6% 5%
    1.79 (6% returns for 10
    1.03
    years)
    Rs. 179,000 Rs. 103,000

    Rs. 2,101,000 Rs. 13,217,000


    0.076 (6% returns for 10
    1
    years)
    Rs. 79,116 Rs. 13,217,000

    Rs. 6,593 Rs. 50,064

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