Investment Calculator

Future value uses: FV = PV × (1 + r)^n, where PV is your present investment, r is the annual return, and n is years. Example: invest ₹2 lakh at 10% for 15 years. FV = 200000 × (1.10)^15 = ₹8,35,450. So your money grows roughly 4x without any further additions. If you also add ₹5,000 monthly, use the SIP formula on top and add both numbers. The calculator lets you input a lump sum and a recurring contribution together — gives you the combined corpus, which is how most real portfolios actually grow.

Work backwards from the goal. If you need ₹50 lakh in 15 years and expect 12% returns, the required monthly SIP works out to roughly ₹10,000. The formula: P = FV × r / [((1 + r)^n − 1) × (1 + r)], where P is monthly SIP, r is monthly rate, n is total months. Adjust your target for inflation first — ₹50 lakh today might mean ₹1.2 crore in 15 years at 6% inflation. The calculator handles this in one screen: enter target, time, and expected return, get the required monthly investment instantly.

For Indian equity, 11-13% annual return over 10+ years is a fair assumption based on long-term Nifty 50 data. For US equities, 8-10% is more historically accurate. For balanced or hybrid funds, use 9-11%. For debt or fixed income, 6-7%. Don't plan with peak returns — markets average out, and overestimation leads to undersaving. Use a conservative figure and treat anything extra as a buffer. If you must pick one number for long-term equity planning in India, 11% is honest. Run a worst-case scenario at 8% as a safety check.

They work together really well. The lump sum starts compounding immediately on day one. The monthly contributions add new money that compounds for shorter periods. Combined formula: FV = PV × (1+r)^n + monthly SIP × [((1+r)^n − 1) / r] × (1+r). Example: ₹3 lakh lump sum plus ₹5,000 monthly for 10 years at 12% gives roughly ₹9.31 lakh from the lump sum and ₹11.62 lakh from the SIP — about ₹20.9 lakh total. The calculator shows both contributions side by side. This is how realistic portfolios are built — initial lump plus steady additions.

More frequent compounding earns slightly more. ₹1 lakh at 10% for 10 years: annual compounding grows to ₹2,59,374. Quarterly grows to ₹2,68,506. Monthly grows to ₹2,70,704. Daily grows to ₹2,71,791. The jump from annual to monthly is meaningful (~₹11,000 over 10 years), but the jump from monthly to daily is tiny. Most Indian instruments compound quarterly (FDs) or annually (PPF). Don't pick a product solely on compounding frequency — the rate, credit quality, and tax treatment usually matter more. The calculator lets you toggle frequency to see the exact impact.

Fees compound against you the same way returns compound for you. A 2% expense ratio over 25 years can eat up 30-40% of your final corpus. ₹10,000 SIP for 25 years at 12% gross gives ₹1.89 crore. At 10% net (after 2% fees), it drops to ₹1.34 crore — over ₹50 lakh gone to fees. Direct mutual fund plans charge 0.3-1% less than regular plans. Switching saves serious money long-term. Always compare expense ratios when choosing funds. The calculator can show pre-fee and post-fee corpus side by side.

Real return = nominal return − inflation rate. If your investment earns 12% and inflation is 6%, your real return is roughly 6% (more precisely, (1.12/1.06)−1 = 5.66%). Use this real rate when projecting goal value in today's purchasing power. Example: ₹10 lakh growing at 12% for 20 years becomes ₹96.5 lakh nominally — but in today's money (after 6% inflation), it's worth about ₹30.1 lakh. The calculator has a built-in inflation adjustment. Always plan goals in real terms — it stops you from underestimating how much you actually need.