An investment calculator combines a lump sum initial investment with recurring monthly contributions to show total wealth over time.
About this calculator
An investment calculator combines a lump sum initial investment with recurring monthly contributions to show total wealth over time. This models a realistic investing scenario where you start with some savings and continue adding to them regularly.
The calculator separates your total contributions from investment returns so you can see exactly how much of your final wealth comes from what you put in versus what compounding generated.
Common uses
- Model wealth growth combining a starting corpus with monthly additions
- Calculate returns on savings accounts or fixed deposits with top-ups
- Plan a retirement portfolio with initial savings and ongoing contributions
- See the compounding effect of adding monthly to a lump sum
Frequently asked questions
How does compounding work in an investment?
Compounding means your returns generate their own returns. At 12% annual return, ₹1 lakh becomes ₹1.12 lakh after year 1. In year 2, the 12% applies to ₹1.12 lakh (not the original ₹1 lakh), generating ₹13,440 in returns instead of ₹12,000. This acceleration grows exponentially over time.