What this calculator does
The estimate assumes a fixed monthly contribution and converts the annual return you enter to a monthly rate. It uses an annuity-due monthly SIP methodology.
Formula & Mathematical Logic
FV = P × [((1 + r)^n − 1) ÷ r] × (1 + r)
P is the monthly contribution, r is the assumed monthly return, and n is the number of monthly contributions.
How WealthAura calculates this
We divide the annual assumption by 1,200 for a monthly rate and use years × 12 contributions. WealthAura uses an annuity-due convention: each monthly contribution is treated as arriving at the start of the month and participates in that month’s assumed growth. At 0%, the result is simply contribution × number of months. Values are rounded for display, not during the calculation.
Worked example
A ₹10,000 monthly SIP for 10 years at an assumed 12% annual return can grow to around ₹23.23 lakh on a total investment of ₹12 lakh.
Input sensitivity & what changes
At the same 12% annual assumption, ₹10,000 a month for 5 years projects about ₹8.25 lakh on ₹6 lakh invested; extending to 10 years projects about ₹23.23 lakh on ₹12 lakh invested. Compounding dramatically accelerates wealth generation in later years.
How to interpret the result
Compare total invested with estimated gains. This is a smooth mathematical projection; an actual fund’s returns and NAV transaction dates will fluctuate with market conditions.
Key factors that influence the outcome
Contribution timing, step-ups, fund expense ratios, market volatility and the investment horizon all affect real-world outcomes.
Common calculation mistakes to avoid
Do not read an assumed return as a guaranteed figure, and do not overlook the corrosive impact of inflation on long-term purchasing power.
Underlying assumptions & legal caveats
Each contribution is assumed to be made at the beginning of the month and earns the chosen constant monthly rate. Mutual fund investments are subject to market risks.
Read the related guide →