Compounding Calculator
Project future value from initial capital, monthly additions, returns, and time. Share a filled result with a URL that restores the inputs automatically.
Worked example: initial amount ₹100000, monthly addition ₹5000, annual return 12%, duration 10yrs. Change any input to recalculate.
Total Invested
₹7,00,000
Future Value
₹14,72,280
Estimated Returns
₹7,72,280
Wealth Multiple
2.10x
This calculator is for educational estimates only. Verify assumptions before making trading, investing, tax, or financial planning decisions.
The Power of Compounding in Indian Markets
Compounding is often called the eighth wonder of the world. When your returns generate further returns, wealth grows exponentially. A ₹10 lakh investment earning 12% annually for 20 years grows to over ₹96 lakhs — without adding a single rupee. Add a monthly ₹5,000 SIP-style contribution and the corpus exceeds ₹1.8 crore.
Compounding Formula
Future Value (lump sum) = P × (1 + r)^n
Future Value (monthly) = M × ((1+r)^n − 1) ÷ r × (1 + r)
Where r = monthly rate, n = months, P = initial, M = monthly addition
Frequently Asked Questions
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For planning, many investors use a conservative long-term equity assumption such as 10–12% and a lower debt or fixed-income assumption such as 6–8%. The right input depends on the asset class and the level of conservatism you want in the projection.
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The more frequently interest is compounded (daily vs. yearly), the higher the effective return. This calculator uses annual compounding for the lump sum and monthly compounding for the monthly addition, which closely matches how most mutual funds and equity portfolios work.
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Our SIP Calculator uses monthly compounding specifically designed for systematic investment plans. The compounding calculator here is more flexible — you can model a lump sum investment plus regular monthly additions together.