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Exactly how every number in your report is calculated, and the assumptions behind each one.
Methodology version: v1.1 · Assumptions last reviewed: 21 June 2026
Niyamfin uses standard personal-finance formulas. Nothing is proprietary or hidden. All figures are estimates based on the inputs you provide and the assumptions listed below. Real outcomes depend on markets, taxes, interest rates, and personal circumstances, which no calculator can predict.
Total assets (cash, investments, retirement savings, property, other) minus total liabilities (home loan, other loans, credit-card dues).
These follow commonly-taught personal-finance benchmarks. Each is a simplified educational rule of thumb, not a regulatory standard, and may not suit every individual situation.
Your current annual expenses are grown by the assumed inflation rate to your retirement age, then the corpus needed to fund them through life expectancy is estimated using the present value of an inflation-adjusted annuity (a “real return” based on your post-retirement return and inflation assumptions). The monthly contribution shown is the level SIP that, at your assumed pre-retirement return, would close the gap between that corpus and the projected future value of your existing retirement savings.
Modelling choices to be aware of: withdrawals are assumed at the end of each retirement year (an ordinary annuity), which is slightly less conservative than start-of-year withdrawals; existing EPF/NPS/SIP contributions are projected at the single pre-retirement return assumption (EPF in reality earns a lower, administered rate, partly offset by the fact that we assume contributions never increase); and retirement expenses are taken as 100% of your current living expenses with no replacement-rate adjustment.
Based on a simplified Human Life Value (HLV) approach — one of two standard methods used in personal-finance planning (the other being the DIME method: Debt + Income + Mortgage + Education). Niyamfin estimates the present value of the share of income that supports dependents over your remaining working years, plus outstanding liabilities, minus existing liquid assets and retirement savings. If you have no dependents, the estimate focuses on clearing liabilities only. This is an educational starting point for discussion, not a recommended policy amount.
DIME method (for reference): Debt + Income replacement (annual income × years to retirement) + Mortgage outstanding + Education costs for dependents. Either method produces a range; actual need depends on your goals, existing cover, and a conversation with a SEBI-registered investment adviser or a qualified insurance professional.
Note: the income stream is discounted at your pre-retirement (growth) return assumption. Discounting at a more conservative debt-like rate — which some planners prefer, since survivors typically invest a payout cautiously — would produce a meaningfully higher cover estimate. Treat this figure as a lower-bound starting point.
A tiered rule-of-thumb floater amount scaled by your city type and number of dependents. Actual adequate cover depends on local medical costs, family health history, and the specific policy — all outside this tool.
Anchored to the ratio benchmarks above: EMIs shown against a 35% ceiling, savings against a 10% floor and a 20% healthy target, and the remainder allocated to living expenses. The “you now” figures come straight from your inputs so you can see where you stand versus the benchmark.
Each goal's present cost is grown by inflation to its target year, and the monthly SIP to reach that future cost is computed using a standard future-value-of-annuity formula at your assumed growth rate.
| Assumption | Default |
|---|---|
| Inflation | 6% |
| Pre-retirement return | 11% |
| Post-retirement return | 7% |
| Emergency fund benchmark | 6 months of essential expenses |
| Life expectancy | User input / default assumption |
| Retirement age | User input |
| Blended loan rate (timeline milestones) | 8.5% p.a. on combined debt at current EMI |
Why these defaults? The 6% inflation default reflects India's medium-term CPI average and is within the RBI's 4±2% tolerance band on the upside over longer horizons; many planners use 6–7% for personal-finance projections (RBI Monetary Policy Framework). The 11% pre-retirement return assumption is broadly consistent with long-term Nifty 50 index returns over 20+ year periods (historical CAGR approximately 11–13%, though past returns do not predict future performance) (NSE Nifty 50 index). The 7% post-retirement return reflects a more conservative, partially debt-oriented portfolio assumption suitable for the drawdown phase. These are illustrative defaults — not forecasts — and you can adjust them in the form.
Tax-related figures, where shown, reflect general rules for FY 2026-27 per the Income Tax Act, 1961 and may not match your actual liability. Income Tax India (official).
These formulas are educational estimates only. They are not financial, investment, insurance, tax, or legal advice.
Basis: These benchmarks are commonly cited in personal-finance education and planning literature. They are not mandated by any regulator and may not suit every individual situation. Always verify with a qualified professional.
Last updated: 21 June 2026