How it works
This calculator compounds a fixed monthly investment at your chosen annual return rate. Each instalment earns returns from the month it is invested, so the longer you stay invested, the more dramatically growth accelerates.
When to use this
Use it to plan a savings goal: retirement, home downpayment, or education. Change the return rate to compare asset classes (6-7% for debt, 10-12% for equity index funds) and see how even a few years of delay impacts the final corpus. Once you know your target corpus, use the EMI calculator to understand the loan side of any big purchase.
Frequently asked questions
What return rate should I use?
Use 10–12% for diversified equity index funds and 6–7% for debt funds. Avoid assuming more than 14% even for aggressive portfolios.
Is SIP better than lump sum?
SIP averages out your purchase price (rupee cost averaging), reducing the risk of buying at a market peak. For salaried investors with monthly income, SIP is the most practical approach.
Does a SIP guarantee the returns shown?
No. Mutual fund SIPs are subject to market risk. The return rate is an assumption; actual returns depend on market performance during your investment period.