Savings growth calculator: lump sum plus monthly deposits, with inflation
Start with what you have, add a monthly deposit, and see how it might grow. The result is shown both in future rupees and in today's money, so inflation is not forgotten.
How to use this calculator
- Enter the amount you start with (it can be zero).
- Enter the amount you add at the end of each month.
- Enter a yearly return and the number of years. Try a low and a high return.
- Add inflation to see the end balance in today's money, then read the table and chart.
Worked examples
Example 1
₹1,00,000 to start, ₹5,000 a month for 10 years at 8% a year with 6% inflation.
You enter
| Amount you start with | ₹1,00,000 |
|---|---|
| Monthly deposit | ₹5,000 |
| Expected return (per year) | 8% |
| Years | 10 |
| Inflation (per year, for 'today's money') | 6% |
You get
| End balance | ₹11,36,694 |
|---|---|
| Total you put in | ₹7,00,000 |
| Growth earned | ₹4,36,694 |
| End balance in today's money | ₹6,34,724 |
Example 2
The same plan with deposits of ₹10,000 a month.
You enter
| Amount you start with | ₹1,00,000 |
|---|---|
| Monthly deposit | ₹10,000 |
| Expected return (per year) | 8% |
| Years | 10 |
| Inflation (per year, for 'today's money') | 6% |
You get
| End balance | ₹20,51,424 |
|---|---|
| Total you put in | ₹13,00,000 |
| Growth earned | ₹7,51,424 |
| End balance in today's money | ₹11,45,505 |
How it works
Each month the balance earns one-twelfth of the yearly return and then your deposit is added. Early on most of the growth is your own deposits; later the growth itself does most of the work.
A return is an average over many years, not a promise for any one year. The 'today's money' figure divides the end balance by inflation over the same years, which shows what the money might buy.
Formula
Each month: balance = balance x (1 + yearly return / 12 / 100) + monthly deposit. Today's money = end balance / (1 + inflation)^years.
Common questions
What is the difference between this and the SIP calculator?
This one lets you start with a lump sum and adds deposits at the end of each month; the SIP calculator assumes deposits at the start of the month and no starting amount.
Does it include tax or charges?
No.
What return should I use?
A cautious one. For money needed soon, use a low figure.
Learn more
Read the lesson Compounding and the time value of money on pusaram.com for the ideas behind this calculator.
Calculators give estimates for learning and planning. They are not financial, tax, legal or medical advice, and results depend entirely on the numbers you enter. Check rates, limits and rules with an official source or a qualified professional before acting.