How this calculator works
Every monthly instalment grows for the months left in your plan. Add up what they could all be worth at the end, and that is the estimate.
- Step 1You invest₹10,000every month, 120 times over 10 years
- Step 2Each one grows1% a monthan assumed 12% a year, for the months left
- Step 3Add them up₹23.23 lakh₹12 lakh is yours, about ₹11.23 lakh is assumed growth
Early money does the heavy lifting
- What you put in that year
- Assumed growth by the end
Start or end of the month
- Start of monthDefault₹23.23 lakhEach instalment also earns that month’s growth.
- End of month₹23 lakhEach instalment starts growing a month later.
Two ways to turn 12% a year into a monthly rate
- NominalDefault1%12% ÷ 12. Common in Indian calculators. Compounds to about 12.68% over a year. Gives ₹23.23 lakh.
- Effective0.95%Compounds to exactly 12% a year. Use it when your figure is a CAGR. Gives ₹22.4 lakh.
What the estimate leaves out
- TaxNo income tax or capital gains tax is deducted.
- Loads and chargesNo exit loads, stamp duty or transaction charges.
- Fund expensesOnly reflected if the return you enter is already after costs.
- Market ups and downsReal returns are uneven; the order of good and bad years matters.
Worked example
- Invested at month end
FV = P × ((1 + i)ⁿ − 1) ÷ i- Invested at month start
FV = P × ((1 + i)ⁿ − 1) ÷ i × (1 + i)- If the return is 0%
FV = P × n
- Pmonthly amount ₹10,000
- imonthly rate 0.01
- nmonths 120
- Monthly rate12% ÷ 121% (0.01)
- Growth of ₹1 over 120 months(1.01)¹²⁰≈ 3.3004
- Value of ₹1 a month(3.3004 − 1) ÷ 0.01≈ 230.04
- Estimated value: scale to ₹10,000, start of month× 10,000 × 1.01₹23,23,391
- You put in120 × ₹10,000₹12,00,000
- Assumed growthvalue − invested₹11,23,391
This is the standard future value of equal monthly payments (an annuity). Investing at the start of each month (an annuity due) multiplies it by (1 + i) once more; a lumpsum L adds L × (1 + i)ⁿ.
These figures come from the same code as the calculator and match our independently computed test values to the paisa.
Reading your result
- The return is your assumption12% is a placeholder you can change, not a prediction or a recommendation.
- Returns varyReal results can be higher or lower than shown, including below what you put in.
- Future rupees buy lessTurn on the reality check to see the result in today’s money.
- Compare, don’t promiseThe best use is relative: more each month, start sooner, step up.
- In 10 years₹23.23 lakhThe estimate in future rupees.
- In today’s money₹12.97 lakhWhat it could buy at today’s prices, at an assumed 6% inflation.
Step-up SIP explained
A step-up SIP raises your monthly amount by a fixed percentage every 12 months, for example as your income grows.
- Flat ₹10,000₹23.23 lakhYou put in ₹12 lakh.
- 10% step-up₹33.74 lakhYou put in ₹19.12 lakh.
Cost of delay explained
Starting 3 years later, with the same end date, could cost about ₹10.04 lakh, even though you would invest only ₹3.6 lakh less.
Common mistakes
Mistake: Treating the return as guaranteed.
Instead: Check a lower return too, and read the result as a range.
Mistake: Ignoring inflation.
Instead: Use the reality check, or set your goal in today’s money.
Mistake: Stopping early or pausing often.
Instead: Remember the last years usually add the most, because the balance is largest then.
Mistake: Mixing up nominal and effective rates.
Instead: If your figure is a CAGR, choose effective in Fine-tune.
Mistake: Comparing calculators blindly.
Instead: Check start vs end of month and the rate convention first.