Investment Calculator

Calculate the future value of your investments with compound growth and monthly contributions.

Initial Investment

Monthly Contribution

Expected Return (% / year)

Investment Period (Years)

What is an Investment Calculator?

An investment calculator helps you project the future value of your investments based on an initial amount, regular contributions, expected rate of return, and investment duration. It demonstrates the powerful effect of compound interest over time.

Investment Growth Formula

FV = P(1+r)ⁿ + PMT × [(1+r)ⁿ – 1] / r

FV = Future value · P = Initial investment · PMT = Monthly contribution · r = Monthly rate · n = Total months

The Power of Compound Interest

Compound interest means you earn interest on your interest. Over long periods, this creates exponential growth. Starting early — even with small amounts — can lead to significantly more wealth than starting later with larger amounts.

Example: SIP of ₹5,000/month at 12% for 20 years

Total Invested: ₹5,000 × 240 months = ₹12,00,000

Future Value: ≈ ₹49,95,740

Interest Earned: ≈ ₹37,95,740

Your money more than quadrupled through the power of compounding!

Investment Tips

Start early: Time is the most powerful factor in compounding. Starting 10 years earlier can double your final amount.
Stay consistent: Regular monthly contributions (SIP) help average out market volatility.
Reinvest dividends: Reinvesting dividends accelerates compounding.
Diversify: Spread investments across asset classes to reduce risk.
Increase contributions: Increase your SIP amount whenever your income grows.

Frequently Asked Questions

SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly (typically monthly) into mutual funds or stocks. It helps average out market volatility through rupee cost averaging and builds discipline in investing.

Historical returns vary by asset class: equity mutual funds 12-15% long-term, fixed deposits 5-7%, gold 8-10%. Use conservative estimates (8-12%) for planning. Remember, past performance doesn't guarantee future returns.

Lump sum works best when markets are low and you have a large amount. SIP is better for most people as it reduces timing risk and builds a regular saving habit. A combination of both is often optimal.