Compound Interest Calculator
See how a one-time investment, a monthly SIP, or a combination of both grows over time. The calculator uses monthly compounding — the same method used by mutual funds and most Indian financial instruments.
Initial lump sum investment
Invested each month
Equity ~12% · Debt ~7% · Balanced ~9.5%
Final Corpus
₹1.90 Cr
after 20 years
Total Invested
₹44.7 L
principal + SIP contributions
Total Gains
₹1.46 Cr
interest + compounding
Wealth Ratio
4.3x
corpus ÷ amount invested
Corpus Growth
Invested amount vs gains — hover to see year-wise values
How this is calculated
Lumpsum growth
A = P × (1 + r/12)^(12×t)
Where P = principal, r = annual rate, t = years. Monthly compounding applied throughout.
SIP growth
Each monthly SIP compounds for remaining months
Every SIP instalment is invested at month-end and compounds until the end of tenure. Step-up SIPs increase the instalment by the step-up % each year.
Wealth ratio
Wealth Ratio = Final Corpus ÷ Total Invested
A wealth ratio of 3x means every rupee you invested became three rupees. Higher tenure and return rate = higher ratio due to exponential compounding.
Suggested return rates
- Nifty 50 / large-cap equity — 12%
- Balanced portfolio (60:40) — 9.5%
- PPF / Debt funds — 7%
- Fixed deposits — 6–7%
A note worth reading before you act
The FIRE math works — but equity returns are not a guarantee. Every projection on this site uses long-term historical averages as a baseline. Markets can and do deliver a decade of poor returns, and if that decade happens to be the early years of your retirement, it puts real pressure on even a well-sized corpus. This isn't a reason to not pursue FIRE. It is a reason to build in margin.
The single most effective safety net is an active income source — even a small one. Freelance work, consulting, a part-time role, rental income. If your portfolio has a bad year and returns 6% instead of 12%, ₹15,000–₹25,000 a month of outside income means you don't have to redeem units at a loss while the market is down. You simply wait.
Financial independence is worth building towards. But “retired” doesn't have to mean “never earns again.” Keep a skill that someone will pay you for. Treat your corpus target as a floor, not a finish line. The goal is resilience — not just a number.
Not financial advice. planMyFIRE is not a SEBI-registered Investment Adviser. Calculator results are estimates based on historical assumptions and are for educational purposes only. Past market returns do not guarantee future performance. Consult a SEBI-registered adviser before making investment decisions. Terms of use.