A breakdown of the scoring, the cost model, and what the numbers mean.
1. Fragmentation Score
Your score is the total number of active financial accounts across 6 categories, multiplied by 8.67. The weight is calibrated so that risk bands (45 / 85 / 130) correspond to realistic levels of overhead for an Indian household.
Formula: Score = (Bank Accounts + Credit Cards + Demat + Locked Savings + Insurance + Loans) × 8.67
The Locked Savings field covers PPF, EPF, NPS, fixed deposits, and recurring deposits.
2. Risk Bands
- Low (0–44): Minimal fragmentation — lean and manageable.
- Medium (45–84): Moderate fragmentation — some consolidation would help.
- High (85–129): Over-fragmented — time, cost, and mental load are piling up.
- Critical (130+): Severely over-fragmented — immediate action recommended.
3. Complexity Index
Your score as a percentage of the Critical threshold (130). At 100%, you've hit the critical line. Capped at 100%.
Formula: min(Score ÷ 130 × 100, 100)%
4. Annual Cost of Fragmentation
Four components, all in rupees per year:
- Maintenance & AMCs: Bank Accounts ₹250 per account, Demat ₹400, Credit Cards ₹600, Insurance ₹5,000, Loans ₹1,000, Locked Savings ₹150 per account (averaged across PPF, EPF, NPS, FDs, RDs).
- Time value: Your monthly hours × 12 × ₹500/hr (requires Hours/Month input).
- Idle-fund loss: 0.5% of total assets if you have more than 12 accounts — cash sitting across too many places earns less (requires Total Assets input).
- Opportunity cost: Better-rate loss at 0.5% (>10 accounts) or 1.0% (>15 accounts) of total assets (requires Total Assets input).
5. Category Status
Each category is flagged as Good (≤2 accounts), Review (3–4), or High (5+). Designed around an efficient Indian household setup.
6. Consolidation Simulator
Drag the slider to model what your score and savings look like at different target account counts. The preset buttons snap to common targets:
- Quick Wins: close 3 dormant accounts (Easy).
- Moderate: trim to 12 total accounts (Medium).
- Optimal: trim to 9 — the recommended setup (Medium).
- Minimalist: trim to 6 — primary-bank focus (Hard).
Savings are estimated at ₹2,500 per closed account — based on average maintenance + time value avoided.
7. Benchmarks & Caveats
Optimal account range (8–12) is based on typical consolidated setups for an Indian household balancing liquidity, growth, insurance, and credit. Weights and thresholds are conservative estimates — your actual numbers may vary with lifestyle, profession, and financial goals.
