Financial Health Check – Standard Version

Published: August 31, 2012 at 5:51 pm

Last Updated on

Online financial health checkers usually are based on “personal finance ratios”. read more about them here. There are more useful to the finance professional than to the layman to assess the financial state of an individual. So I made this financial health checker which does not reply in these ratios.

In fact you could even call this calculator a mini financial report.

The idea behind the check is quite simple.

1. how much you earn,
2. how much you spend incl. emis
3. the difference bet. 1 and 2 is how much you can save.

Depending on when you retire, how long you are likely to live,
inflation rate and present expenses the amount you need to save
per month for your retirement is calculated.

The same quantity is also calculated for your other goals. Children’s education, marriage etc.

So you now know
A. How you can save
B How much you need to save.

The health indicator changes colour depending on the ratio


RED if A?B < 0.75 (i.e 75%)
Orange is A?B is between 0.75 and 0.9
Green above 0.9

Broad suggestions to change your rating to green are also provided.

Download the Financial Health Checker

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About the Author M Pattabiraman author of freefincal.comM. Pattabiraman(PhD) is the author and owner of  He is an associate professor at the Indian Institute of Technology, Madras since Aug 2006. Pattu” as he is popularly known, has co-authored two print-books, You can be rich too with goal based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management.  He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice. Pattu publishes unbiased, promotion-free research, analysis and holistic money management advice. Freefincal serves more than one million readers a year (2.5 million page views) with numbers based analysis on topical issues and has more than a 100 free calculators on different aspects of insurance and investment analysis. He conducts free money management sessions for corporates  and associations(see details below). Previous engagements include World Bank, RBI, BHEL, Asian Paints, TamilNadu Investors Association etc. Contact information: freefincal {at} Gmail {dot} com (sponsored posts or paid collaborations will not be entertained)
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I conduct free seminars to employees or societies. Only the very basics and getting-started steps are discussed (no scary math):For example: How to define financial goals, how to save tax with a clear goal in mind; How to use a credit card for maximum benefit; When to buy a house; How to start investing; where to invest; how to invest for and after retirement etc. depending on the audience. If you are interested, you can contact me: freefincal [at] Gmail [dot] com. I can do the talk via conferencing software, so there is no cost for your company. If you want me to travel, you need to cover my airfare (I live in Chennai)

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Do check out my books

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingMy first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.  It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You WantGamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantMy second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step.  Get the pdf for ₹199 (instant download)

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Your thoughts are vital to the health of this blog and are the driving force behind the analysis and calculators that you see here. We welcome criticism and differing opinions. I will do my very best to respond to all comments asap. Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.


  1. I think that “Initial Month investment required” calculation is not correct. I entered following data :-
    Years to goal 3
    Present cost 1,40,000
    inflation 7.0%
    Net Roi 8.00%
    Futire Cost 1,71,506
    Amt invested so far 0
    RoI of current invest. 8.00%
    Future value of curr. Inv. 0
    Annual inc. in monthly invest. % 10.00%

    It calculates “initial mon. invest. reqd.” = 3713, which seems incorrect. As per my calculation, it should be 3555. Though difference is not much in this case but it could be significant in other cases. Similar corrections needs to be done in other calculators too.

    1. There are different variants of the compounding formula. The version I use has been checked for consistency and I am comfortable with it. If you want me to you evaluate your comment better, you will need to provide the formula you use.

      1. Hi,

        Thanks for replying. Sorry, My earlier figure 3,555 was incorrect. What i got is we need to invest 3,839 initially.
        I do not have particular formula. I used to calculate it manually. Here it is:
        a) If you invest Rs. 3,713 per month @ 8% interest for 36 months, maturity amount is 1,51,389
        b) From second year onwards, you invest 371 per month (10% of 3713) @ 8% interest for 24 months, maturity amount is 9,680
        c) From third year onwards, you invest 408 per month (10% of (3713+371)) @ 8% interest for 12 months, maturity amount is 5,112

        Total amount at end of third year = 1,51,389 + 9,680 + 5,112 = 1,66,181 (5,325 short of our goal)

        Now, same analysis with 3,839.
        a) If you invest Rs. 3,839 per month @ 8% interest for 36 months, maturity amount is 1,56,527
        b) From second year onwards, you invest 384 per month (10% of 3839) @ 8% interest for 24 months, maturity amount is 10,019
        c) From third year onwards, you invest 422 per month (10% of (3839+384)) @ 8% interest for 12 months, maturity amount is 5,288

        Total amount at end of third year = 1,56,527 + 10,019 + 5,288 = 1,71,834

        1. thanks for sending the details. The amt to be save will vary depending on whether you choose monthly or yearly compounding, investments made at the start or end of the month. What you did makes sense but that does not mean the formula used is wrong. I will not worry too much about it. The idea is to invet something close to either value! Thanks.

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