Financial Calculators
Calculate EMIs, loans, investments, and more with our easy-to-use financial calculators.
Investment Calculator – Calculate Future Value & Compound Interest Returns
Calculate the future value of your investments with compound interest. Our free investment calculator helps you plan financial goals by showing potential returns on lump sum investments, regular SIP contributions, and different compounding frequencies.
Investment Calculator
Calculate the future value of your investments with compound interest. See how regular monthly contributions can grow your wealth over time.
Understanding Investment Returns
This calculator uses compound interest to project your investment growth. Compound interest means you earn returns not only on your initial investment but also on the returns you've already earned.
Key Factors
- Principal: Your initial investment amount
- Monthly Contributions: Regular additions to your investment
- Annual Return: Expected yearly return percentage
- Time Period: How long you plan to invest
What is Compound Interest?
Compound interest is the interest calculated on both the initial principal and the accumulated interest from previous periods. It's often called "interest on interest" because you earn returns not just on your original investment, but also on the interest that investment has already earned.
The power of compound interest is one of the most important concepts in investing. It explains why starting to invest early, even with small amounts, can lead to significant wealth accumulation over time.
Compound Interest Formula
The compound interest formula for lump sum investment is:
Where:
- A (Future Value): Final amount after investment period
- P (Principal): Initial investment amount
- r (Rate): Annual interest rate (as decimal)
- n (Compounding Frequency): Number of times interest is compounded per year
- t (Time): Number of years
For regular investments (SIP), the formula becomes:
Where PMT is the regular investment amount.
Example: ₹10,000 invested annually at 8% for 20 years:
Future Value = ₹10,000 × [(1 + 0.08)^20 - 1] / 0.08
Total Investment: ₹2,00,000
Future Value: ₹5,81,797
Total Returns: ₹3,81,797 (191% return)
Investment Calculator Examples
Long-term SIP Investment
- Monthly Investment: ₹5,000
- Annual Return: 12%
- Investment Period: 25 years
Total Investment: ₹15,00,000
Future Value: ₹1,53,00,000
Total Returns: ₹1,38,00,000
Lump Sum Investment
- Initial Investment: ₹5,00,000
- Annual Return: 10%
- Investment Period: 15 years
Future Value: ₹20,89,000
Total Returns: ₹15,89,000
Annualized Return: 10%
Emergency Fund Growth
- Monthly Savings: ₹10,000
- Annual Return: 6%
- Investment Period: 3 years
Total Investment: ₹3,60,000
Future Value: ₹3,92,000
Total Returns: ₹32,000
Who Should Use Investment Calculator?
💼 Young Professionals
Plan your career savings and understand the power of starting early with compound interest.
👨👩👧👦 Parents
Calculate education fund requirements and plan children's future financial needs.
🏖️ Pre-retirees
Calculate retirement corpus needed and plan your golden years financially.
📈 Mutual Fund Investors
Calculate SIP returns and compare different mutual fund investment scenarios.
🏠 Home Buyers
Calculate down payment accumulation and plan your home purchase timeline.
💰 Financial Advisors
Create investment projections and help clients understand potential returns.
Benefits of Using Investment Calculator
🎯 Goal Planning
Set realistic financial goals and calculate required monthly investments.
📊 Compare Scenarios
Compare different investment amounts, rates, and time periods instantly.
⏰ Power of Time
Visualize how compound interest grows your money over different timeframes.
📱 SIP Planning
Calculate Systematic Investment Plan returns and optimize investment frequency.
💡 Risk Assessment
Understand potential returns at different risk levels and market conditions.
🎓 Financial Education
Learn about compound interest, investment planning, and wealth creation.
Frequently Asked Questions About Investment Calculator
What is the difference between simple and compound interest?
Simple interest is calculated only on the principal amount. Compound interest is calculated on both principal and accumulated interest. For long-term investments, compound interest yields much higher returns.
How often should interest be compounded?
Interest can be compounded annually, semi-annually, quarterly, monthly, or daily. More frequent compounding (monthly vs annually) results in higher returns. Most investments compound monthly or quarterly.
What is a good rate of return for investments?
Historical returns: Fixed Deposits (6-7%), Mutual Funds (10-12%), Stocks (12-15%), Real Estate (8-10%). Expected returns vary by risk level. Higher returns come with higher risk. Consider your risk tolerance and investment horizon.
How does inflation affect investment returns?
Inflation reduces purchasing power over time. If your investments return 8% and inflation is 3%, your real return is 5%. Always consider inflation-adjusted returns when planning long-term financial goals.
What is the rule of 72 in investing?
The Rule of 72 estimates how long it takes to double your investment. Divide 72 by your expected annual return to get the number of years. Example: At 8% return, money doubles in 9 years (72 ÷ 8 = 9).
Should I invest lump sum or through SIP?
Lump sum works when markets are low. SIP (Systematic Investment Plan) reduces market timing risk by averaging purchase prices. SIP is ideal for regular income earners and reduces emotional decision-making in volatile markets.
How much should I save for retirement?
Financial planners recommend 25-30 times your annual expenses as retirement corpus. Use our calculator with different scenarios. Start early - even small amounts grow significantly with compound interest over 20-30 years.
Are calculator results guaranteed?
Calculator results are projections based on assumed rates of return. Actual returns may vary due to market conditions, fees, taxes, and inflation. Use as planning tool, not as guaranteed outcomes. Consult financial advisors for personalized advice.