Investment Calculator
Plan your wealth creation journey by estimating returns on SIP and Lumpsum investments.
₹
%
Years
Future Value
₹ 0
Invested amount
₹ 0Estimated returns
₹ 0What is an Investment Calculator?
An Investment Calculator helps you estimate the future value of your investments. Whether you are investing a one-time lump sum or making regular monthly contributions (SIP), this tool calculates the maturity amount based on the expected rate of return and time period.
How It Works
The calculator uses the compound interest formula. For Lumpsum, it applies compounding to the principal. For SIP, it calculates the future value of a series of payments.
Lumpsum: FV = P * (1 + r)^n
SIP: FV = P * [ (1+r)^n - 1 ] * (1+r) / r
Example Calculation
Scenario
You invest ₹10,000 monthly (SIP) for 10 years at 12% annual return.
- 1.Monthly Investment = ₹10,000
- 2.Rate = 12% (Monthly r = 0.01)
- 3.Months = 120
- 4.Total Invested = ₹12,00,000
- 5.Estimated Returns = ₹11,23,391
- 6.Total Value = ₹23,23,391
Why This Tool is Useful
- ✓Visualizes the power of compounding.
- ✓Helps compare SIP vs Lumpsum strategies.
- ✓Assists in goal-based planning (e.g., saving for a car or house).
- ✓Shows the split between invested capital and interest earned.
- ✓Encourages long-term investing discipline.
Tips & Comparison
- •Power of Compounding: The longer you stay invested, the more your money grows. The 'interest on interest' effect is massive in later years.
- •Step-up SIP: Increasing your SIP amount by just 10% every year can double your corpus.
- •Risk vs Reward: Higher returns (equity) come with higher risk. Balance your portfolio with debt instruments.
- •Inflation: Always aim for returns that beat inflation (Real Rate of Return).