Financial Projector

Professional wealth planning and analysis engine.

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Future Balance
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Total Value
Total Interest
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Total Earnings
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Projection

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How to Use This Financial Projector

This is a professional-grade wealth planning engine — not a basic compound interest calculator. It models the same scenarios that financial planners and Chartered Accountants use to project corpus growth, retirement income, and investment outcomes. Here is a step-by-step guide to getting the most out of it:

  1. Select Currency — Choose INR (₹) for Indian investments, or switch to USD, EUR or GBP for foreign currency projections. All calculations and chart labels update automatically.
  2. Select Mode — Choose Compound for most real-world investment scenarios (Fixed Deposits, Mutual Funds, PPF, NPS). Choose Simple Only to compare simple interest instruments — useful for understanding the compounding advantage.
  3. Enter Starting Principal — This is your initial lump sum investment. For SIP-style projections with no initial corpus, enter ₹0 here and add a regular deposit in the contributions section.
  4. Set Rate and Time — Enter the interest/return rate and select the Rate Frequency (Annual, Quarterly, Monthly etc.). Enter the investment duration in years. The tool supports fractional years for precise projections.
  5. Choose Compounding Frequency — This is where precision matters. Bank FDs typically compound quarterly. PPF compounds annually. Liquid funds compound daily. Select the frequency that matches your actual instrument for accurate results.
  6. Add Regular Contributions — Click Deposit to simulate SIP-style investments. Set the amount, frequency (Monthly, Quarterly, Annual), and whether contributions are made at the beginning or end of each period. Enable Annual Increase % to model step-up SIPs where you increase your contribution each year.
  7. Add Systematic Withdrawals — Click Withdraw to plan retirement income. Choose Fixed Amount (for a regular pension-like withdrawal), % of Balance (to preserve corpus while drawing down), or % of Quarterly Earnings (to spend only the returns without touching the principal). This models SWP — Systematic Withdrawal Plans — accurately.
  8. Use Both Deposits and Withdrawals — Click Both to model complex scenarios — for example, a pension fund that receives annual contributions while also disbursing monthly income, or a business account with regular inflows and outflows.
  9. Read the Results — The three metric cards show Future Balance (total corpus), Total Interest (returns earned), and Net Invested (total capital deployed). Hover over the projection chart to see year-by-year balance, invested amount, and interest earned at any point in time.

💡 Pro Tip — How to Read the Chart: The amber/sunset gradient area represents your total future balance growing over time. The white overlay represents your invested capital (principal + contributions). The gap between them — visible as the gradient area above the white — is your compounding returns. A wider gap means compounding is working harder for you. Hover anywhere on the chart to see the exact numbers for that year.

Compound Interest vs Simple Interest — The Real Difference

Simple interest and compound interest are both methods of computing returns on an investment — but they produce dramatically different outcomes over time. Understanding the difference is the foundation of intelligent financial planning.

📊 Simple Interest

Simple interest is calculated only on the original principal — it never earns interest on previously earned interest.

Formula: SI = P × R × T

  • P = Principal amount
  • R = Annual rate of interest
  • T = Time in years

Common instruments: Some personal loans, certain government bonds, short-term credit facilities

Characteristic: Returns grow in a straight line — predictable but limited.

📈 Compound Interest

Compound interest earns returns on both the original principal AND on all previously accumulated interest — creating exponential growth.

Formula: A = P × (1 + r/n)nt

  • P = Principal, r = Annual rate
  • n = Compounding frequency per year
  • t = Time in years

Common instruments: Fixed Deposits, Mutual Funds, PPF, EPF, NPS, Savings Accounts

Characteristic: Returns grow exponentially — slow initially, dramatically faster over time.

Example — ₹10 Lakh invested at 8% for 20 years

Simple Interest: ₹10,00,000 + (₹10,00,000 × 8% × 20) = ₹10,00,000 + ₹16,00,000 = ₹26,00,000

Compound Interest (Annual): ₹10,00,000 × (1 + 0.08)²⁰ = ₹46,61,000

Compound Interest (Quarterly): ₹10,00,000 × (1 + 0.08/4)⁸⁰ = ₹48,51,000

The difference between simple and quarterly compounding on the same ₹10 lakh at 8% for 20 years is ₹22,51,000 — more than double the original investment. This is the compounding advantage.

How Compounding Frequency Impacts Your Wealth

The same interest rate produces meaningfully different outcomes depending on how frequently it compounds. This is one of the most underappreciated factors in investment planning — and one that this calculator lets you model precisely.

Compounding Frequency Times Per Year ₹10L at 8% for 10 Years ₹10L at 8% for 20 Years ₹10L at 8% for 30 Years
Annually 1× ₹21,59,000 ₹46,61,000 ₹1,00,63,000
Semi-Annually 2× ₹21,91,000 ₹48,01,000 ₹1,05,20,000
Quarterly 4× ₹22,08,000 ₹48,75,000 ₹1,07,69,000
Monthly 12× ₹22,20,000 ₹49,27,000 ₹1,09,36,000
Weekly 52× ₹22,25,000 ₹49,49,000 ₹1,10,02,000
Daily (365) 365× ₹22,25,000 ₹49,53,000 ₹1,10,20,000

Key Insight: Moving from annual to daily compounding on ₹10 lakh at 8% over 30 years adds approximately ₹9.57 lakh to your corpus — with zero additional investment. This is why the compounding frequency matters when selecting between two instruments offering the same stated interest rate. Always check whether the rate quoted is annual compounding or daily compounding before comparing instruments.

Which Instruments Use Which Compounding Frequency?

Investment Instrument Typical Compounding Frequency Rate Frequency Notes
Bank Fixed Deposit Quarterly Annual Some banks offer monthly payout options — use Monthly frequency for those
Public Provident Fund (PPF) Annually Annual Interest credited on 31st March each year on lowest balance between 5th and end of month
Employee Provident Fund (EPF) Annually Annual Interest declared annually by EPFO — use annual compounding
National Pension System (NPS) Daily (Market-linked) Annual (assumed) NAV-based returns — use daily compounding with estimated return rate
Equity Mutual Funds (SIP) Daily (NAV-based) Annual (CAGR) Use CAGR as annual rate — daily compounding approximates NAV movement
Recurring Deposit (RD) Quarterly Annual Same as FD — use quarterly compounding with monthly deposits enabled
Savings Account Daily or Monthly Annual Most banks calculate interest on daily basis but credit monthly
Senior Citizen Savings Scheme Quarterly Annual Interest paid quarterly — use quarterly frequency with withdrawal enabled

Regular Deposits — Simulate Your SIP and RD Returns

The Regular Contributions — Deposit feature transforms this from a lump sum calculator into a powerful SIP (Systematic Investment Plan) and Recurring Deposit simulator. Here is how to use it for different scenarios:

📅 Standard SIP Simulation

  • Set Starting Principal to ₹0 (or your existing corpus)
  • Set Rate to your expected CAGR (e.g. 12% for equity funds)
  • Set Compounding Frequency to Monthly
  • Enable Deposits → set Monthly amount
  • Set timing to End of Period
  • Enter investment duration in years

Result: You get the projected maturity value, total invested amount and total returns — the same output as any SIP calculator, but with far more control over assumptions.

📈 Step-Up SIP Simulation

  • Same settings as Standard SIP above
  • Enable the Annual Increase % field
  • Enter your annual SIP increase rate (e.g. 10% if you plan to increase SIP by 10% each year)
  • The calculator adjusts the deposit amount upward at the start of each new year automatically

Why this matters: A ₹10,000/month SIP at 12% for 20 years gives ₹99.9 lakh. The same SIP with a 10% annual step-up gives ₹2.13 crore — more than double, just by increasing contributions with your salary growth.

Example — SIP vs Step-Up SIP — ₹10,000/month at 12% CAGR for 20 years

Standard SIP (₹10,000/month, fixed): Total Invested = ₹24,00,000 | Corpus = ₹99,91,000 | Returns = ₹75,91,000

Step-Up SIP (₹10,000 starting, +10% each year): Total Invested = ₹68,73,000 | Corpus = ₹2,13,27,000 | Returns = ₹1,44,54,000

Step-Up SIP generates ₹1,13,36,000 more corpus than a standard SIP — purely by increasing contributions in line with salary growth. Use the Annual Increase % field to model this in the calculator above.

Begin vs End Period — What It Means: When you select Begin Period, each month’s contribution earns an extra month of returns compared to End Period. This is called an annuity due (contributions at beginning) vs ordinary annuity (contributions at end). For a ₹10,000 monthly SIP at 12% over 20 years, Begin Period gives approximately ₹1,00,000 more corpus than End Period. Most SIPs in India are End of Period — use that as default unless your fund specifically mentions early credit.

Systematic Withdrawal Planning — Retirement Income Calculator

The Withdraw feature is where this tool becomes genuinely powerful for retirement planning. It allows you to model how long your corpus will last, how much monthly income you can draw, and whether your withdrawals are sustainable. There are three withdrawal modes — each suited to a different retirement strategy:

💰 Fixed Amount Withdrawal

Most Common

Withdraw a fixed sum (e.g. ₹50,000/month) regardless of corpus performance. This is the SWP (Systematic Withdrawal Plan) approach used with mutual funds.

Best for: Retirees who need a predictable monthly income to meet fixed expenses.

Risk: If the corpus return rate falls below your withdrawal rate, the balance depletes faster than expected. The projection chart will show this as a declining balance curve.

Use Annual Increase % to model inflation-adjusted withdrawals — e.g. increase withdrawals by 6% per year to maintain purchasing power.

📊 % of Balance Withdrawal

Corpus-Preserving

Withdraw a percentage of your current balance each period (e.g. 4% annually — the famous 4% rule). This adjusts withdrawals dynamically based on portfolio performance.

Best for: Retirees who want to preserve capital while drawing income — the withdrawal shrinks when the corpus shrinks, preventing depletion.

The 4% Rule (India context): The 4% safe withdrawal rate was developed for US markets. For Indian investors, a rate of 3-3.5% is generally considered more sustainable given inflation and return variability.

🔄 % of Quarterly Earnings

Interest-Only

Withdraw only a percentage of the returns earned each quarter — leaving the principal completely untouched. This is the most conservative approach.

Best for: Investors who want to live off investment income while fully preserving their capital for inheritance or future needs.

Example: A ₹2 crore corpus at 8% earns approximately ₹4,00,000 per quarter. Withdrawing 100% of quarterly earnings gives ₹33,333/month in perpetuity — with the full ₹2 crore corpus intact forever.

Example — Retirement Planning — ₹2 Crore Corpus at 60 Years

Scenario: Retire with ₹2,00,00,000 corpus. Expected return: 8% annually (quarterly compounding). Need monthly income for 30 years.

Fixed ₹1,00,000/month withdrawal: Corpus lasts approximately 32 years at 8% return — balance reaches zero at age 92.

Fixed ₹1,50,000/month withdrawal: Corpus depletes in approximately 19 years — runs out at age 79.

4% of Balance annually (₹66,667/month initially): Corpus never depletes — balance still ₹1.8 crore after 30 years.

Model all three scenarios in the calculator above by changing the withdrawal type and amount. The projection chart will visually show when — and if — your corpus runs out. This is the most important retirement planning exercise you can do.

Real-World Use Cases — Indian Investment Instruments

Here is how to configure this calculator for the most common Indian investment instruments — with exact settings for accurate projections:

🏦
Fixed Deposit

Bank Fixed Deposit (FD)

Mode: Compound

Compound Freq: Quarterly

Rate: Your bank’s FD rate (e.g. 7.5%)

Contributions: None (lump sum)

Tax note: Interest is fully taxable as income. Add TDS impact manually.

🏛️
PPF

Public Provident Fund (PPF)

Mode: Compound

Compound Freq: Annually

Rate: Current PPF rate (7.1% for 2024-25)

Contributions: Deposit — Annual, ₹1,50,000 max

Tax note: EEE status — fully tax-free at all stages.

📈
Equity MF SIP

Equity Mutual Fund SIP

Mode: Compound

Compound Freq: Daily

Rate: Expected CAGR (12-14% for equity funds historically)

Contributions: Deposit — Monthly, your SIP amount

Tax note: LTCG above ₹1.25L taxed at 12.5%. STCG at 20%.

👴
NPS

National Pension System (NPS)

Mode: Compound

Compound Freq: Daily

Rate: Expected return (10-11% for aggressive tier 1)

Contributions: Deposit — Monthly, your NPS contribution

Tax note: 60% lump sum tax-free at maturity. 40% must be used for annuity.

💼
EPF

Employee Provident Fund (EPF)

Mode: Compound

Compound Freq: Annually

Rate: Current EPF rate (8.25% for 2023-24)

Contributions: Deposit — Monthly (employee + employer = 24% of basic)

Tax note: EEE status up to ₹2.5L/year contribution. Above that taxable.

🏠
Retirement SWP

Post-Retirement SWP Planning

Mode: Compound

Compound Freq: Monthly

Rate: Conservative 7-8% (balanced fund)

Contributions: Withdraw — Fixed Amount, monthly income needed

Tax note: Each SWP redemption has capital gain implications — LTCG or STCG depending on holding period.

Tax on Investment Returns in India — What Every Investor Must Know

This calculator projects pre-tax corpus. Understanding the tax implications of your actual investment instrument is essential to knowing your real post-tax returns. Here is the complete tax framework for Indian investment returns:

Fixed Deposits & Recurring Deposits

Slab Rate
Interest taxed as “Income from Other Sources”
  • TDS at 10% if interest exceeds ₹40,000/year (₹50,000 for senior citizens)
  • Full interest added to your income and taxed at your applicable slab rate
  • No indexation benefit — especially punishing during high inflation periods
  • Form 15G/15H can prevent TDS if total income is below taxable limit

PPF, EPF & SSY (EEE Instruments)

0%
Exempt-Exempt-Exempt status
  • Contribution eligible for Section 80C deduction (up to ₹1.5L)
  • Interest earned is completely tax-free
  • Maturity amount is completely tax-free
  • EPF taxable above ₹2.5L/year employee contribution — interest on excess taxable

Equity Mutual Funds — Long Term (LTCG)

12.5%
Gains after 12 months holding — Section 112A
  • Exempt up to ₹1,25,000 LTCG per financial year
  • Tax at flat 12.5% on gains above ₹1.25L — no indexation
  • Surcharge and cess (4%) applicable on the tax amount
  • Effective tax rate with cess: 13% on gains above exemption limit

Equity Mutual Funds — Short Term (STCG)

20%
Gains within 12 months — Section 111A
  • Flat 20% on all short term gains — no exemption limit
  • No indexation, no exemption for equity STCG
  • Effective rate with 4% cess: 20.8%
  • SIP redemptions within 12 months of each SIP installment attract STCG

Debt Mutual Funds

Slab Rate
All gains taxed at income slab rate (from April 2023)
  • Finance Act 2023 removed indexation and LTCG benefit from debt funds
  • All gains (regardless of holding period) taxed at individual slab rate
  • Makes debt funds equivalent to FDs from a tax perspective
  • Arbitrage funds still qualify for equity taxation — use instead of liquid funds

NPS — National Pension System

60% Tax-Free
Partial EEE — at maturity and exit
  • Contribution eligible for deduction under Section 80CCD(1B) — extra ₹50,000 over 80C limit
  • 60% of corpus on retirement — completely tax-free
  • 40% must be used to purchase annuity — annuity income is taxable as salary
  • Partial withdrawal (up to 25%) tax-free after 3 years for specified purposes

⚠️ Post-Tax Returns Matter More Than Pre-Tax Rates: A 7.5% FD for a taxpayer in the 30% bracket yields a post-tax return of approximately 5.2%. A 7.1% PPF gives a post-tax return of 7.1% — because it is entirely tax-free. Always compare investments on a post-tax, post-inflation basis. Our CA team can run this analysis for your specific tax situation — reach out for a personalised assessment.

The Rule of 72 — How Long Will It Take to Double Your Money?

The Rule of 72 is one of the most powerful mental shortcuts in personal finance. It tells you approximately how many years it will take to double your investment at a given rate of return — without any calculation.

The Rule of 72

Years to Double = 72 ÷ Annual Interest Rate (%)

At 8% annual return → 72 ÷ 8 = 9 years to double your money

At 12% annual return → 72 ÷ 12 = 6 years to double your money

At 6% annual return → 72 ÷ 6 = 12 years to double your money

Annual Return Rate Years to Double (Rule of 72) ₹10L grows to in 30 Years Common Instrument
5% ~14.4 years ₹43,22,000 Savings Account, Short FD
6% ~12 years ₹57,43,000 Post Office Deposits, NSC
7% ~10.3 years ₹76,12,000 PPF, EPF (current rates)
8% ~9 years ₹1,00,63,000 Bank FDs (senior citizen rates)
10% ~7.2 years ₹1,74,49,000 Balanced Mutual Funds (historical)
12% ~6 years ₹2,99,60,000 Large Cap Equity Funds (historical)
15% ~4.8 years ₹6,62,12,000 Small Cap / Mid Cap Funds (historical)

✅ The Inflation Reality Check: India’s average inflation rate has historically been 5-6% per year. This means a 7% return instrument gives you only 1-2% real (inflation-adjusted) return. To genuinely grow wealth in real terms, you need returns consistently above inflation. Equity investments have historically been the only asset class that meaningfully outpaces inflation over long periods in India — which is why financial planners recommend equity exposure for goals that are 7+ years away.

Frequently Asked Questions

What is the difference between interest rate and CAGR — and which should I enter in this calculator?
Interest rate and CAGR (Compound Annual Growth Rate) are closely related but not identical. For fixed-return instruments like FDs and PPF, the stated interest rate is what you should enter — set the compounding frequency to match the instrument (quarterly for FDs, annually for PPF). For market-linked instruments like mutual funds and NPS, you should enter the expected CAGR as the annual rate. CAGR already accounts for compounding over the period — it is the smoothed annual growth rate that would produce the same outcome as the actual (volatile) year-by-year returns. For equity funds, historical 10-year CAGR ranges from 12-15% for large cap funds and 15-18% for mid/small cap funds, though past performance is not guaranteed.
How do I use this calculator to plan for a specific financial goal — like a child’s education or a home down payment?
Goal-based planning with this calculator is straightforward. First, estimate the future cost of your goal — for example, if a college education costs ₹20 lakh today and you have 15 years, inflate it at 8% per year to get the future cost (₹20L × 1.08¹⁵ ≈ ₹63.4L). Now use the calculator to find what monthly SIP will generate ₹63.4L in 15 years at your expected return rate. Enter ₹0 as principal, set your expected return rate, set time to 15 years, enable Deposits with monthly frequency, and adjust the monthly amount until the Future Balance shown equals or exceeds your target. This tells you exactly how much to invest monthly to meet your goal.
What is the current PPF interest rate and how should I set up the calculator for PPF?
The PPF interest rate for FY 2024-25 is 7.1% per annum, compounded annually and credited on 31st March each year. To model PPF accurately in this calculator: set Mode to Compound, Rate to 7.1%, Rate Frequency to Annually, Compounding Frequency to Annually, Time to your remaining PPF tenure (up to 15 years with extensions). Enable Deposits, set Frequency to Annually with a maximum of ₹1,50,000 per year (the PPF contribution limit), and set timing to Begin Period (as PPF contributions are credited from 5th of the month). PPF is one of India’s best guaranteed-return instruments — EEE tax status means the effective return is significantly higher than the stated 7.1% for taxpayers in higher brackets.
How accurate is this calculator for SIP returns compared to actual mutual fund SIP calculators?
This calculator uses the same mathematical model as all SIP calculators — the difference lies in assumptions. Standard SIP calculators assume a fixed constant return rate, which is a simplification since actual mutual fund NAVs fluctuate daily. This calculator does the same — it gives you the mathematically correct future value assuming your assumed CAGR is achieved consistently. In reality, equity returns are volatile and sequence of returns matters significantly. For long-term goals (15+ years), the mathematical projection is reasonably reliable. For shorter horizons, treat the output as a planning target rather than a guaranteed outcome. The step-up SIP feature (Annual Increase %) makes this more accurate than most basic SIP calculators because real investors typically increase their SIP amounts over time.
How do I calculate my EPF corpus at retirement using this tool?
To project your EPF corpus: set Mode to Compound, Rate to 8.25% (current EPF rate for 2023-24), Compounding Frequency to Annually, and Time to your remaining years until retirement. Enable Deposits with Monthly frequency — enter your monthly EPF contribution (employee share of 12% of basic pay + employer’s EPS contribution of 8.33% goes to pension, but the remaining 3.67% employer share goes to EPF). Enter your current EPF balance as Starting Principal. The challenge is that EPF interest rates change annually — use 8% as a conservative long-term assumption. Also note that EPF contributions above ₹2.5 lakh per year from the employee side attract tax on the interest — a CA can help you compute the taxable portion for higher salary individuals.
What withdrawal rate is considered safe for retirement planning in India?
The famous 4% withdrawal rule was developed for US markets and may not be directly applicable to Indian investors. Research suggests that for India, a safe withdrawal rate of 3% to 3.5% per annum is more sustainable given higher inflation rates, shorter equity market history, and sequence of returns risk. Practically, this means a ₹2 crore retirement corpus can sustain approximately ₹50,000 to ₹58,000 per month in withdrawals indefinitely. Anything significantly above 4% of corpus risks depletion within 20-25 years. Use the % of Balance withdrawal mode in this calculator at 3-4% to see the sustainable income level from any corpus size — the projection chart will confirm whether the corpus remains stable or depletes over your planning horizon.
How does Daily (365) differ from Daily (360) compounding — and when does it matter?
The difference between 365-day and 360-day compounding is subtle but real. Daily (365) computes interest using 365 days in a year — standard for most Indian instruments. Daily (360) uses the banker’s convention of 360 days, which was historically common in some international money markets and wholesale banking. For retail investors in India, Daily (365) is almost always the correct choice. The difference in output is very small — on ₹10 lakh at 8% for 10 years, the difference is approximately ₹5,000 — but for large institutional balances, it matters. Use Daily (365) for all Indian instruments unless the product documentation specifically states 360-day convention.
Can I use this calculator to compare whether to invest in PPF or ELSS mutual funds for tax saving?
Yes — this is one of the most powerful use cases for this tool. Run two parallel projections: one for PPF at 7.1% annual compounding with ₹1,50,000 annual deposit, and one for ELSS at your expected CAGR (say 12%) with monthly compounding and ₹12,500 monthly deposit. Compare the future balances after 15 years. Then apply the tax effect — PPF maturity is 100% tax-free, while ELSS maturity triggers LTCG tax at 12.5% on gains above ₹1.25 lakh per year. The post-tax comparison often surprises investors — ELSS typically wins on absolute corpus but PPF wins on certainty and post-tax efficiency for conservative investors. A CA can help you factor in your current tax bracket, Section 80C position, and risk appetite to make the optimal choice for your specific situation.

Plan Smarter — File Smarter

Investment returns are only part of the equation. The tax you pay on those returns determines what you actually keep. Our expert Chartered Accountants help you structure investments for maximum post-tax returns — from capital gains planning to regime selection and Section 80C optimisation. CA-assisted ITR filing starting at just ₹599.

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