The Math Behind
Your Finance Health Check

The app looks at every income source the user ticked. If the checkbox is ticked and a number is entered, that number is added in. If the checkbox is unticked, that source contributes zero — it is completely ignored regardless of what number might be sitting in the box. Custom income rows added by the user are included in the same addition.

Why this matters: Every other formula in the entire tool divides something by this total income number. If income is zero, the app stops the user from moving forward — all the ratios and percentages would be mathematically impossible to calculate.

Why divide first?
When you divide Total Expenses by Total Income, the result is always a decimal number. For example, ₹40,000 ÷ ₹60,000 gives you 0.6667. This decimal means "expenses are 0.6667 times the income" — which is technically correct, but it is very hard to read at a glance.

Why multiply by 100?
Multiplying by 100 converts that decimal into a percentage. 0.6667 × 100 = 66.67. Now you can say "66.67% of income is being spent," which is immediately meaningful. The × 100 does nothing other than shift the decimal point two places to the right so the number reads as a percentage instead of a fraction.

A simple way to remember it: any time a division gives you a decimal between 0 and 1, multiplying by 100 turns that decimal into its "out of 100" version — which is exactly what a percentage is.

General rule: Below 70% is manageable. Below 50% means you are keeping more than half your income, which is excellent financial discipline.

If income is ₹60,000 and expenses are ₹40,000, monthly savings are ₹20,000. If expenses are higher than income, savings come out as a negative number — meaning the user is going into debt that month.

The division gives you a fraction.
Monthly Savings ÷ Total Income tells you what share of income was kept. For example, ₹20,000 ÷ ₹60,000 = 0.333. This means you saved one-third of your income — but 0.333 is not easy to read on a screen.

The × 100 converts that fraction into a percentage.
0.333 × 100 = 33.3. Now the app can display "Savings Rate: 33.3%", which everyone understands immediately.

This is exactly the same reason as in the Expense Ratio. Any time a division produces a decimal between 0 and 1, the × 100 is just there to make it readable as a percentage. It happens in every ratio throughout this tool — savings rate, EMI ratio, investment rate — they all follow this exact same pattern.

The 33.3% example above falls into the "30% or above" bracket, so it earns the full 25 points.

If you have ₹1,20,000 in emergency savings and your monthly expenses are ₹20,000, then you can survive for exactly 6 months without any income. The division asks: how many times does one month of expenses fit into the total fund?

There is no × 100 here because we want the raw number of months — not a percentage. Six months is six months. Multiplying by 100 would give a meaningless number like 600.

The 4.5-month example falls into "3 to 5.9 months" and earns 12 out of 20 points. The recommendation engine would then suggest building it up to at least 6 months.

The industry benchmark in India is a minimum of ₹5 lakh of health coverage per person. The app divides the total policy coverage by the number of people covered to find the per-person figure, then compares it to the thresholds below. No × 100 here — we are calculating a rupee amount, not a percentage.

The standard planning rule is that life cover should be 10 to 15 times your annual income. This ensures your family can sustain their lifestyle for many years without your income.

Monthly income is multiplied by 12 first to get the annual figure because the life cover is a lump sum that needs to replace years of income — not just one month. Then the cover amount is divided by that annual income to get the multiplier. No × 100 — we want the raw multiplier (like 10x, 13x, 15x), not a percentage.

Total Insurance Score = Health sub-score + Life sub-score. Maximum is 8 + 7 = 15 points.

Same reason as always: Total EMI ÷ Total Income gives a decimal like 0.30. Multiplying by 100 turns it into 30%, which immediately tells you "30 rupees out of every 100 you earn goes to loan repayments." The × 100 is always the same conversion — decimal fraction into human-readable percentage.

This ratio answers: for every rupee of debt owed, how many rupees of investments are there? A ratio below 1 means investments are worth more than total debt — a healthy position. A ratio above 2 means debts are more than double the investments — financially fragile.

No × 100 here — we want the raw ratio (like 0.5 or 1.2 or 3.0), not a percentage. The number directly expresses the relationship between debt and investments as a multiplier.

Total Debt Score = EMI Burden Score + Debt-to-Investment Score. Maximum is 10 + 10 = 20 points.

Exact same logic as every other percentage in this tool. The division gives a decimal fraction. Multiplying by 100 converts it into a percentage so you can say "I invest 15% of my income every month" instead of "I invest 0.15 of my income."

This tells you how many years' worth of income you have accumulated as investments. A ratio of 5 means you have saved and invested the equivalent of 5 full years of your income — an excellent wealth position.

Monthly income is multiplied by 12 to get the annual figure because portfolio value is a lump sum — it makes more sense to compare it against a full year of income rather than just one month. No × 100 — the ratio is a number of years, not a percentage.

Total Investment Score = Monthly Rate Score + Portfolio Depth Score. Maximum is 10 + 10 = 20 points.

The score is kept between 0 and 100. A score below zero is mathematically impossible since each component is individually floored at zero. A score above 100 is prevented by the individual caps on each component.

The canvas gauge draws a semicircle. The coloured arc sweeps from the far left to a position that corresponds to the score. A score of 50 fills exactly half the arc. A score of 100 fills the complete arc. The colour of the arc matches the bracket the score falls into.

Bar 1 — Income: The total monthly income figure. Colour: blue.

Bar 2 — Expenses: The total monthly expenses figure. Colour: purple.

Bar 3 — Savings: Income minus expenses. If this is negative, the bar shows zero — the negative figure is used in recommendations instead. Colour: green.

The app goes through every expense field — Rent, EMIs, Electricity, Groceries, Fuel, Dining, Shopping, Healthcare, Subscriptions, Education, Miscellaneous, and any custom expenses. Any field with a value above zero contributes one slice proportional to that expense's share of total spending. Fields left at zero are excluded so the chart is not cluttered with empty slices.

Only the investment types the user ticked and filled in are included. Each type — Mutual Funds, Stocks, Fixed Deposits, PPF/NPS/EPF, Gold, Real Estate, custom investments — contributes one slice proportional to its share of the total portfolio. The emergency fund is also included as a "Cash / Liquid" slice because it is a real asset even though it is kept liquid.

The third bar shows net worth. If net worth is positive — assets exceed debts — the bar is shown in blue. If net worth is negative — debts exceed assets — the bar is shown in amber as a visual warning that total debt is wiping out all accumulated wealth.

Each recommendation is shown as a card with a left-border colour matching its type — red for danger, amber for warning, green for success. The message text is personalised by inserting the user's actual numbers, for example: "Your EMI ratio is 48% — approaching the danger zone. Consider prepaying your highest-interest loan."