Future Value (Compound Interest) Calculator
Calculate how your money grows over time with compound interest. Perfect for understanding the power of consistent savings and investment growth.
Future Value (Compound Interest) Calculator
Result
How it works
Formula Used
FV = P(1+r)^n + A × [((1+r)^n - 1) / r] P = Principal, r = annual rate (%), A = annual addition, n = years
Smart Tips
- Use realistic return rates (equity: 10-12%, debt: 6-7%)
- Regular contributions matter more than one-time lumpsum
- This calculator ignores taxes and inflation
Best Used For
Plan savings for retirement, house, education fund
FAQs
What return rate should I use for equity investments?
For Indian equity funds, use 10-12% annual return. For debt funds, use 6-7%. For balanced portfolios, average them based on your allocation. Remember these are historical averages, not guaranteed returns.
Should I include annual contributions or just one-time investment?
If you plan regular annual contributions, include them. Regular SIPs (Systematic Investment Plans) compound significantly. A ₹10,000 annual addition for 20 years at 12% return creates a ₹80+ lakh corpus, far exceeding initial principal.
Does this calculator account for inflation and taxes?
No, it shows nominal growth. To calculate real growth, subtract inflation rate from the return rate. For tax impact, reduce your return estimate by your tax slab percentage (e.g., 30% tax = use 8.4% instead of 12%).
Can I use this for Fixed Deposits (FDs)?
Yes. For FDs, use the FD interest rate as your growth rate. However, FD rates are fixed, not variable like mutual funds. So the calculation is simpler—no market volatility to worry about.
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