Financial Health Calculator

Financial Health Calculator: How It Works

This calculator assesses how prepared you are for a financial emergency.

  • Crisis Scenario: Your expenses increase by 2x for 8 months.
  • Basic Assumption: Your income remains stable during this period.
  • Investment Impact: During crises, investment returns may decline (you can model this using negative returns).
  • Financial Health Score: Combines your net worth, cash flow health, and recovery capacity (including investment returns).
  • 100% Score: Means you're fully prepared to weather this financial emergency.
  • Recommendations: Personalized advice based on your financial situation.

This calculator assesses how prepared you are for a worst-case scenario where expenses increase by 2x for 8 months.

Your Financial Inputs

₹/month
₹/month
₹

Cash and easily accessible savings

₹

Stocks, bonds, mutual funds, etc.

Average annual return on your investments (can be negative during market downturns)

₹

How much your expenses might increase during a crisis

How long the financial crisis might last

Your Financial Health

Financial Health Score: 0.0%

Total Liquid Assets vs Buffer RequiredInfinity%
Status: Needs Attention
Projected Monthly Expenses (2x)₹0
Crisis Buffer Requirement (8 months)₹0
Monthly Debt Repayment₹0
Total Investments₹50,000
Monthly Investment Income₹0
Net Worth₹0
Monthly Surplus₹50,000
Recovery Time0.0 months

What This Means

Your financial buffer needs strengthening to handle emergencies effectively.

Recommendations:

    Financial Health Projection

    Understanding This Graph

    This graph shows a projection of your financial health over the next 24 months. It includes a simulated crisis starting at month 6 where your expenses increase by 2x for 8 months.

    • The blue line shows your projected financial health score
    • Hover over any point to see detailed financial metrics for that month
    • Red vertical line marks the start of the financial crisis
    • Green vertical line marks the end of the crisis period

    Understanding Your Financial Health Score

    Net Worth Stability (50%)

    Compares your net worth (savings + investments minus debt) with the buffer needed for a crisis. A positive net worth covering your entire buffer requirement gives you 50 points.

    Cash Flow Health (30%)

    Measures how your monthly surplus (income minus expenses plus investment returns) compares to debt obligations. A surplus of twice your monthly debt payment gives you the full 30 points.

    Recovery Capacity (20%)

    Estimates how quickly you could rebuild your emergency buffer after a crisis. Being able to rebuild within 6 months gives you the full 20 points.