Calculation Methodology
Transparency is core to our platform. Here is exactly how our servers compute your financial data.
The Standard SIP Formula
We use the standard Compound Interest formula for a regular annuity. Since SIP investments are made monthly, the annual rate of return is divided by 12, and the total years are multiplied by 12 to get the total number of months.
M = P × [((1 + i)^n - 1) / i] × (1 + i)
Step-Up SIP Computation
For Step-Up calculations, our algorithm iterates through each year. We calculate the compounded value of the investments made in Year 1. In Year 2, the monthly principal (P) is increased by the Step-Up percentage. We then calculate the compound interest for the new principal for the remaining years, and so on. Finally, all the distinct yearly compound values are summed up to give the precise maturity value.
Inflation Adjustments
When the inflation toggle is activated, we apply the standard discounting formula to the final maturity amount to show its Present Value (PV):
Adjusted Value = Maturity Amount / (1 + Inflation Rate)^Years
This helps investors understand what their future corpus will actually be worth in today's purchasing power.
Statutory & Regulatory Note on Projections
The formulas outlined above compute deterministic mathematical projections assuming a constant rate of return. In actual financial markets, mutual fund Net Asset Values (NAVs) fluctuate daily. In compliance with SEBI and AMFI guidelines, investors are reminded that past performance does not guarantee future results. Projections are pre-tax and do not factor in individual capital gains taxes (LTCG / STCG), indexation modifications, or annual tax amendments introduced by the Government of India through the Finance Act.