How this calculation works
This is an annuity-due estimate: every monthly investment happens at the beginning of the month. The assumed monthly return is the annual rate divided by 12. At a 0% return, future value equals total contributions.
FV = payment × [((1 + r)ⁿ − 1) ÷ r] × (1 + r)A worked example
₹5,000 invested at the beginning of each month for 5 years, at an assumed 12% nominal annual return, grows to approximately ₹4,12,431.83.
Good to know
A planning estimate. Actual products may use different payment dates, fees, tax treatment or rounding. Rates entered here are assumptions, not offers.
Separate what you put in from what you hope to earn
₹5,000 every month for five years means ₹3,00,000 of contributions. With the model’s assumed 12% nominal annual return and beginning-of-month contributions, the estimated ending value is about ₹4,12,432. Approximately ₹1,12,432 is modeled growth, not additional money you contributed.
That distinction helps when a larger projected number looks impressive. Change the return assumption and the growth changes, but the contribution total is determined by the monthly amount and the number of deposits. Start by checking whether that contribution schedule is affordable.
Deposit timing leaves a mathematical fingerprint
A contribution made at the beginning of a month gets one more month of assumed growth than the same contribution made at the end. In this formula, that difference appears as the final multiplier (1 + monthly rate).
At a 1% assumed monthly rate, the beginning-of-month annuity value is 1% higher than the corresponding end-of-month value. This is a model comparison, not evidence that moving a real investment by a day will guarantee a specific return.
A smooth curve is not how markets actually move
This model applies the same positive percentage every month. Real market returns vary, may be negative, and can arrive in very different sequences. A smooth projection helps explain compounding but does not describe the actual path an investment will follow.
Fees, taxes, missed contributions, step-ups and withdrawals are excluded. Use several assumptions rather than treating one selected return as a forecast or a promise.
A few questions, answered
Is the return based on a current fund?
No. It is an assumption you enter. The tool does not recommend a product or fetch fund performance.
What does the 0% scenario show?
With no return, the final value equals monthly contribution multiplied by the number of months.