Alex21c Personal Finance Calculator

Package Link on npmjs

alex21c-personal-finance-calculator

Objectives

This node.js package will help you to compute following personal finance

1. Emergency Fund Target: Calculates the target amount for an emergency fund based on monthly expenses.
2. Rule of 72: Estimates the number of years it will take for an investment to double based on a fixed annual rate of return.
3. Saving for a Specific Goal: Calculates the amount needed to be saved regularly to achieve a specific financial goal.
4. Debt Payoff Plan: Calculates the time to pay off a debt given regular payments.
5. Return on Investment (ROI): Measures the profitability of an investment relative to its cost.
6. Future Value of a Single Sum (lumpsum): Calculates the future value of a lump sum investment after a certain number of years.
7. Compound Interest with Regular Contributions: Determines the future value of investments with regular contributions.
8. Retirement Savings Target: Determines the target amount to be saved for retirement.
9. Savings Rate: Calculates the percentage of income saved or invested regularly.
10. Asset Allocation Percentage: Helps in determining the proportion of assets to be allocated to different investment types.

How to install this package in yours project

npm i alex21c-personal-finance-calculator

Tech. Stack Used:

• NodeJS

make sure to add type:module in yours package.json file so that you can use import statement

"type": "module"

Example #1: Emergency Fund Target

/**
 * 1. Emergency Fund Target:
 *  Emergency Fund Target = Monthly Expenses × Number of Months
 *  - Calculates the target amount for an emergency fund based on monthly expenses.
 * @param {number} monthlyExpenses : monthly expenses
 * @param {number} numberOfMonths : number of months for which to calculate emergency fund
 * @returns {number | undefined} Emergency Fund Target 
 */
import {emergencyFundTarget} from "alex21c-personal-finance-calculator";

let monthlyExpenses = 600000;
// number of months for which to calculate emergency fund
let numberOfMonths = 12;

let output = `With ₹${emergencyFundTarget(60000, 12)} Emergency fund, in case there is a job loss, i can easily support my family by spending ₹${monthlyExpenses}/month as expense for next ${numberOfMonths} months.`;
console.log(output);

OUTPUT:

With ₹720000 Emergency fund, in case there is a job loss, i can easily support my family by spending ₹600000/month as expense for next 12 months.

Example #2: Rule of 72

import {ruleOf72} from "alex21c-personal-finance-calculator";

/**
 * 2. Rule of 72:
 *  Years to double = 72 / annual return rate
 *  - Estimates the number of years it will take for an investment to double based on a fixed annual rate of return.
 * @param {number} annualReturnRate : annual return rate
 * @returns {number | undefined}  Years to double
 */

let annualReturnRate = 10; // percent
let output = `It would take total of ${ruleOf72(10)} years for my investment to double, if i get ${annualReturnRate}% return per year.`;

console.log(output);

OUTPUT:

It would take total of 7.2 years for my investment to double, if i get 10% return per year.

Example #3: Saving for a Specific Goal

import {savingForSpecificGoal} from "alex21c-personal-finance-calculator";

/**
 * 3. Saving for a Specific Goal:
 *  Savings Needed = (Goal Amount - Current Savings) / Number of Months until Goal
 *  - Calculates the amount needed to be saved regularly to achieve a specific financial goal.
 * @param {number} goalAmount : investment goal in rupees for e.g. ₹1 Cr
 * @param {number} currentSavings : for e.g. ₹2 Lakhs
 * @param {number} numberOfMonthsUntilGoal : for e.g. 120 months = 10 years
 * @returns {number | undefined} Savings Needed
 */

let goalAmount = 10000000; //₹1 Cr
let currentSavings = 200000; //₹2 Lakhs
let numberOfMonthsUntilGoal = 120; // 10 years
let output = `I need to save ₹${savingForSpecificGoal(goalAmount, currentSavings, numberOfMonthsUntilGoal)} every month, to have ₹${goalAmount} in next ${numberOfMonthsUntilGoal/12} years`;
console.log(output);

OUTPUT:

I need to save ₹81667 every month, to have ₹10000000 in next 10 years

Example #4: Debt Payoff Plan

import {debtPayOffPlan} from "alex21c-personal-finance-calculator";

/**
 * 4. Debt Payoff Plan:
 *  Months to Pay Off Debt = Total Debt / Monthly Payment
 *  - Calculates the time to pay off a debt given regular payments.
 * @param {number} totalDebt : total debt person is having e.g. ₹10,000/-
 * @param {number} monthlyPayment : monthly EMI payment e.g. ₹1000
 * @returns {number | undefined} Months to Pay Off Debt
 */

let totalDebt = 170000; // ₹1.7 Lakhs
let monthlyPayment = 5000; // ₹5 thousand
let output = `it would take me ${debtPayOffPlan(totalDebt, monthlyPayment)} months to clear debt of ₹${totalDebt} by paying ₹${monthlyPayment} every month.`;
console.log(output);

OUTPUT:

it would take me 34 months to clear debt of ₹170000 by paying ₹5000 every month

Example #5: Return on Investment (ROI)

import {roi} from "alex21c-personal-finance-calculator";

/**
 * 5. Return on Investment (ROI):
 *  ROI = (Net Profit / Cost of Investment) * 100%
 *  - Measures the profitability of an investment relative to its cost.
 * @param {number} netProfit : net profit e.g. ₹10,000/-
 * @param {number} costOfInvestment : principal amount invested e.g. ₹1 Lakh
 * @returns {number | undefined} ROI in percent
 */
let netProfit = 700000; //₹7 Lakhs
let costOfInvestment = 2000000;//₹20 Lakhs
let output = `Last year By swing trading in stock market (NSE Equity) with capital of ₹${costOfInvestment}, i made net profit of ₹${netProfit}}, thus getting ${roi(netProfit, costOfInvestment)}% return on my investment`;
console.log(output);

OUTPUT:

Last year By swing trading in stock market (NSE Equity) with capital of ₹2000000, i made net profit of ₹700000}, thus getting 35% return on my investment

Example #6: Future Value of a Single Sum (lumpsum)

import {futureValueOfLumpSum} from "alex21c-personal-finance-calculator";

/**
 * 6. Future Value of a Single Sum (lumpsum):
 *  FV = PV * (1 + r/100)^n
 *  Where:
 *  - FV is the future value of the investment
 *  - PV is the present value or initial investment
 *  - r is the annual interest rate 
 *  - n is the number of years
 *  - Calculates the future value of a lump sum investment after a certain number of years.
 * @param {number} presentValue : e.g. ₹2 Lakh
 * @param {number} annualInterestRate : e.g. 10%
 * @param {number} numberOfYears : e.g. 10
 * @returns {number | undefined} future value
 */

let presentValue = 200000; // ₹2 lakhs
let annualInterestRate = 10; // 10%
let numberOfYears= 10; 
let output = `i will get ₹${futureValueOfLumpSum(presentValue, annualInterestRate, numberOfYears)}, if i invest my ₹${presentValue} in stock market for next ${numberOfYears} years, getting compounded ${annualInterestRate}% interest per year`;
console.log(output);

OUTPUT:

i will get ₹518748.49, if i invest my ₹200000 in stock market for next 10 years, getting compounded 10% interest per year

Example #7: Compound Interest with Regular Contributions

import {compoundInterestWithRegularContributions} from "alex21c-personal-finance-calculator";

/**
 * 7. Compound Interest with Regular Contributions:
 *   FV = P * Math.pow((1 + r), n) + PMT * ((Math.pow((1 + r), n + 1) - 1) / r) * (1 + r);
 *  Where:
 *  - FV is the future value
 *  - P is the principal investment
 *  - r is the interest rate per year
 *  - n is the number of years
 *  - PMT is regular Contribution per month
 *  - Determines the future value of investments with regular contributions.
 * @param {number} principalInvestment : e.g. ₹2 Lakh
 * @param {number} interestRatePerYear : e.g. 10%
 * @param {number} regularContribution : e.g. ₹5000 Montly contribution
 * @param {number} numberOfYears : e.g. 20 years
 * @returns {number | undefined} future value
 */
let principalInvestment = 200000; //₹2 lakh
let interestRatePerYear= 10; //10%
let regularContribution= 5000; //₹5000
let numberOfYears=20; 
let output = `My initial investment of ₹${principalInvestment}, will become ₹${compoundInterestWithRegularContributions(principalInvestment,interestRatePerYear,regularContribution, numberOfYears)} after ${numberOfYears} years, iff i kept investing ₹${regularContribution} every month, and getting annual compounded return of ${interestRatePerYear}%`;
console.log(output);

OUTPUT:

My initial investment of ₹200000, will become ₹1697513.74 after 20 years, iff i kept investing ₹5000 every month, and getting annual compounded return of 10%

Example #8: Retirement Savings Target

import {retirementSavingsTarget} from "alex21c-personal-finance-calculator";

/**
 * 8. Retirement Savings Target:
 *  Retirement Savings Target = desired Annual Retirement Income / Expected Investment Return Rate
 *  - Determines the target amount to be saved for retirement.
 * @param {number} desiredAnnualRetirementIncome : e.g. ₹24 Lakhs
 * @param {number} expectedInvestmentReturnRate : e.g. 10%
 : e.g. 10%
 * @returns {number | undefined} Retirement Savings Target
 */

 let desiredAnnualRetirementIncome= 2400000; // ₹24 Lakhs
 let expectedInvestmentReturnRate=7; //7%

let output = `My Retirement savings target needs to be ₹${retirementSavingsTarget(desiredAnnualRetirementIncome, expectedInvestmentReturnRate)}, if i want to have ₹${desiredAnnualRetirementIncome}/year after retirement, assuming my investments keep giving ${expectedInvestmentReturnRate}% annual return after my retirement.`;
console.log(output);

OUTPUT:

My Retirement savings target needs to be ₹34285714, if i want to have ₹2400000/year after retirement, assuming my investments keep giving 7% annual return after my retirement.

Example #9: Savings Rate

import {savingsRate} from "alex21c-personal-finance-calculator";

/**
 * 9. Savings Rate:
 *  Savings Rate = (Amount Saved or Invested / Total Income) × 100%
 *  - Calculates the percentage of income saved or invested regularly.
 * @param {number} amountSavedOrInvested : e.g. ₹50,000/-
 * @param {number} totalIncome : e.g. ₹1 Lakh Lakhs/-
 * @returns {number | undefined} Savings Rate in percent
 */
let amountSavedOrInvested=900000;
let totalIncome=1200000;

let output = `I have invested ${savingsRate(amountSavedOrInvested, totalIncome)}% (₹${amountSavedOrInvested}) of my total income: ₹${totalIncome}`;
console.log(output);

OUTPUT:

I have invested 75% (₹900000) of my total income: ₹1200000

Example #10: Asset Allocation Percentage

import {assetAllocationPercentage} from "alex21c-personal-finance-calculator";

/**
 * 10. Asset Allocation Percentage:
 *  Allocation Percentage = (Value of Asset / Total Portfolio Value) × 100%
 *  - Helps in determining the proportion of assets to be allocated to different investment types.
 * @param {number} valueOfAsset : e.g. ₹50,000/-
 * @param {number} totalPortfolioValue : e.g. ₹2 Lakhs
 * @returns {number | undefined} Allocation Percentage
 */
let valueOfAsset = 200000000; //₹20 Cr
let totalPortfolioValue = 970000000; //₹ 97Cr
let output = `i have invested ₹${valueOfAsset} in Gold which is ${assetAllocationPercentage(valueOfAsset, totalPortfolioValue)}% of my total portfolio (₹${totalPortfolioValue})`;
console.log(output);

OUTPUT:

i have invested ₹200000000 in Gold which is 20.62% of my total portfolio (₹970000000)

Author

Abhishek kumar, (Geekster MERN Stack FS-14 Batch)