Grow Your Wealth,
One Rupee at a Time
See exactly how compound interest and SIP investments build your corpus — in rupees, with real Indian return rates.
Growth Over Time
Year-by-Year Breakdown
| Year | Amount Invested | Interest Earned | Total Corpus |
|---|
How It Works
Compound Interest
Compound interest grows your money by reinvesting returns each period. The formula for a lump sum with regular monthly additions is:
A = P × (1 + r/n)^(n×t)
+ PMT × [((1 + r/n)^(n×t) − 1) / (r/n)] P = principal r = annual rate (decimal) n = periods per year t = years PMT = monthly addition
Choose monthly (n=12), quarterly (n=4), or annually (n=1) to match your instrument — mutual funds and RDs typically compound monthly; most FDs compound quarterly.
SIP (Systematic Investment Plan)
A SIP invests a fixed amount every month. Each instalment earns compound returns from its date of investment. The standard beginning-of-period formula is:
FV = PMT × [((1 + i)^n − 1) / i] × (1 + i) PMT = monthly SIP amount i = monthly rate = annual rate ÷ 12 n = total months invested
SIP returns are always compounded monthly. The extra
× (1 + i)
factor accounts for investing at the start of each month rather
than the end, which is the convention used by Indian mutual funds.
Frequently Asked Questions
What is compound interest?
Compound interest is interest calculated on both the initial principal and the accumulated interest from previous periods. Unlike simple interest, it grows exponentially — the longer you stay invested, the more powerful the effect.
How is SIP different from lump-sum investing?
A lump-sum investment puts a single amount to work immediately. A SIP (Systematic Investment Plan) invests a fixed amount every month, averaging your cost over time. SIPs suit salaried investors and reduce market-timing risk.
What compounding frequency should I choose?
Most Indian mutual funds and recurring deposits compound monthly. Fixed deposits typically compound quarterly. The higher the frequency, the more your money grows — monthly compounding produces slightly better results than quarterly or annual.
Why is SIP always compounded monthly?
SIP investments are made every month, so the return calculation inherently uses a monthly compounding rate (annual rate ÷ 12). The standard SIP formula uses beginning-of-period contributions, which is the industry convention.
What is a lakh and how are amounts displayed?
In the Indian number system, 1 lakh = 1,00,000 and 1 crore = 1,00,00,000. This calculator shows amounts as ₹1.00 L (lakhs) or ₹1.25 Cr (crores) for readability, and uses full Indian comma formatting in the breakdown table.
How accurate is this calculator?
This calculator uses the standard compound interest and SIP future-value formulas. Actual returns depend on market conditions, fund performance, expense ratios, and taxes. Use this for planning estimates, not guaranteed projections.
Is this suitable for Indian mutual funds and fixed deposits?
Yes. For equity mutual funds or SIPs, use SIP mode. For fixed deposits, use Compound Interest mode with quarterly compounding (most Indian banks compound FDs quarterly). For PPF or NSC, select annually.
What does 'beginning-of-period' mean for SIP?
Each monthly instalment is assumed to be invested at the start of the month, giving it one extra month of growth. This is the industry-standard SIP assumption and produces slightly higher returns than end-of-period investing.