What is the Future Value Calculator?
A Future Value Calculator shows how an entered amount changes under a constant planning return assumption and time horizon. It is a mathematical scenario, not a forecast, product comparison or recommendation.
Use assumptions that you select and can explain. Actual investment returns, deposit rates, fees, taxes and inflation may differ over the modeled period.
How does it work?
For a lump sum investment, the future value formula is straightforward: FV = PV × (1 + r)^n, where PV is the present value (the amount you invest today), r is the periodic interest rate, and n is the number of compounding periods. For example, if you invest ₹5,00,000 today at 10% per annum compounded annually for 15 years, FV = 5,00,000 × (1.10)^15 = ₹20,88,623. The compounding frequency matters significantly — monthly compounding (common in bank FDs) uses r = annual rate ÷ 12 and n = years × 12.
For SIP (Systematic Investment Plan) investments — the most popular way Indians invest in mutual funds — a different formula applies: FV = P × [(1 + r)^n – 1] / r × (1 + r), where P is the monthly SIP amount, r is the monthly rate of return (annual rate ÷ 12), and n is the total number of months. This formula treats each monthly instalment as a separate investment that compounds for its remaining tenure, then sums all of them. The final multiplication by (1 + r) accounts for investments made at the beginning of each period (annuity due).
The key inputs are the amount, the user-selected planning return assumption, the tenure and the compounding frequency supported by the calculator. The same inputs always produce the same modeled value; actual outcomes can be materially higher or lower.
Worked example
Enter the same amount and tenure with two different planning return assumptions to see how sensitive the modeled future value is to that assumption. The difference between the results is not evidence that either return will occur.
When to use this calculator
- 1Explore how a contribution, planning return assumption and tenure combine mathematically.
- 2Compare multiple user-selected scenarios using the same amount and horizon.
- 3Estimate a nominal future value before separately considering inflation, fees and taxes.
Common mistakes to avoid
- ✕Treating the entered planning return assumption as an expected or guaranteed market return.
- ✕Comparing products from future value alone without reviewing their different risk, liquidity, costs and tax treatment.
- ✕Leaving fees, taxes or inflation out of an interpretation when the calculator does not model them.
- ✕Assuming a rate entered today remains available for the full horizon.
Frequently asked questions
- What return should I enter?
- Choose a planning assumption for the scenario you want to test. NiyamFin does not prescribe a market-return assumption; actual returns may be materially higher or lower.
- How is PPF future value calculated and is it tax-free?
- PPF uses a government-notified rate; the Q3 FY 2026-27 rate is 7.1%. A projection can compound an entered rate, but future quarters may differ. Verify current scheme and tax rules before acting.
- Does the Future Value Calculator account for step-up SIPs?
- No. This projection uses the contribution pattern shown in the form. Use a step-up calculator when contributions change over time.
- What is the difference between annual and monthly compounding?
- For the same nominal annual rate, monthly compounding applies periodic growth more often than annual compounding. Use the frequency documented for the scenario you are modeling.
- Can this calculator choose an investment for a goal?
- No. It models entered assumptions only. Product selection, risk, inflation and goal suitability require separate evaluation.