Investment Calculator — Calculations & Slabs for FY 2026-27
Enter your initial investment, monthly contribution, expected annual return, and tenure to project your total portfolio value using compound growth.
1. Investment Variables
Growth Breakdown Proportions
📈 The Power of Compound Interest in Investment Portfolios
Investing a lump sum of money provides a solid base, but consistently adding contributions is what truly accelerates your future capital growth. This mathematical compounding synergy is the foundation of long-term financial planning.
Mathematical Equations of Investment Compounding
The calculation combines two different formulas: the standard compound interest formula for the initial deposit and the future value of an ordinary annuity formula for the regular contributions.
- Initial Deposit Growth: Calculates how the initial lump sum grows over time:
FV_principal = P × (1 + r / n)^(n × t)where P is the initial deposit, r is the annual interest rate, n is the compounding frequency per year, and t is the time in years. - Annuity Growth (Regular Contributions): Calculates how the regular additions grow when compounded at the chosen frequency:
FV_annuity = PMT × [((1 + r / n)^(n × t) - 1) / (r / n)]where PMT is the contribution amount per period, and the compounding intervals correspond directly to the investment sequence.
How Compounding Frequency Accelerates Growth
Compounding frequency is the number of times per year interest is calculated and added back to your balance. The more frequently interest compounds, the faster your savings grow:
- Weekly Compounding: Returns are calculated 52 times a year, allowing interest to accumulate and reinvest at an ultra-fast rate.
- Monthly Compounding: Returns are calculated 12 times a year. This is the industry standard for retirement accounts and mutual funds.
- Annual Compounding: Returns are calculated once at the end of each year. This is useful for modeling long-term treasury bonds.