A regular contribution can make long-term saving easier to organise, but it does not turn uncertainty into a straight line. The most useful projection shows what came from contributions, what came from an assumed rate and what the calculation leaves out.
Separate the saving habit from the forecast
A standing monthly investment creates a repeatable behaviour. Its value is partly operational: the household decides what can be set aside and makes the contribution part of the budget.
A projection is different. It is a mathematical illustration based on inputs chosen today. Actual investments fluctuate, costs differ and future outcomes will not trace a smooth assumed path.
How contributions and an assumed return separate over time
- Cumulative contributions
- Illustrative value at 10% p.a.
View chart data and units
| Years of monthly contributions | Cumulative contributions | Illustrative value at 10% p.a. |
|---|---|---|
| 1 | 1.2 ₹ lakh | 1.26 ₹ lakh |
| 2 | 2.4 ₹ lakh | 2.64 ₹ lakh |
| 3 | 3.6 ₹ lakh | 4.18 ₹ lakh |
| 4 | 4.8 ₹ lakh | 5.87 ₹ lakh |
| 5 | 6 ₹ lakh | 7.74 ₹ lakh |
| 6 | 7.2 ₹ lakh | 9.81 ₹ lakh |
| 7 | 8.4 ₹ lakh | 12.1 ₹ lakh |
| 8 | 9.6 ₹ lakh | 14.62 ₹ lakh |
| 9 | 10.8 ₹ lakh | 17.41 ₹ lakh |
| 10 | 12 ₹ lakh | 20.48 ₹ lakh |
| 11 | 13.2 ₹ lakh | 23.89 ₹ lakh |
| 12 | 14.4 ₹ lakh | 27.64 ₹ lakh |
| 13 | 15.6 ₹ lakh | 31.8 ₹ lakh |
| 14 | 16.8 ₹ lakh | 36.38 ₹ lakh |
| 15 | 18 ₹ lakh | 41.45 ₹ lakh |
Assumes a constant 10% annual rate compounded monthly, with ₹10,000 invested at each month-end. Illustration only; actual returns vary, and the smooth line is not historical market performance.
Read the projection at visible checkpoints
Contribution and calculated balance checkpoints for the same hypothetical monthly investment.
| Year | Contributed | Illustrative balance | Difference from contributions |
|---|---|---|---|
| 1 | ₹1,20,000 | ₹1,25,656 | ₹5,656 |
| 3 | ₹3,60,000 | ₹4,17,818 | ₹57,818 |
| 5 | ₹6,00,000 | ₹7,74,371 | ₹1,74,371 |
| 10 | ₹12,00,000 | ₹20,48,450 | ₹8,48,450 |
| 15 | ₹18,00,000 | ₹41,44,703 | ₹23,44,703 |
The same ordinary-annuity calculation is used for every annual chart point and each displayed checkpoint; rupee values are rounded to the nearest rupee.
Plan for an uneven path
Market-linked investments do not compound at a fixed rate each month. Values may fall, remain below contributions for a period or recover on a timetable that does not match the household goal.
The contribution amount also deserves review. A salary change, new obligation or approaching goal may justify increasing, reducing or redirecting future contributions after a suitability discussion.
A projection is a question, not a promise
Calculation basis and exclusions
Sources
- SEBI Investor · SIP CalculatorPrimary-source reminder that calculator outputs are illustrations and do not represent actual or predictable market returns.
Assumptions and limits
- ₹10,000 is contributed at the end of every month for the stated period.
- The illustrative 10% nominal annual rate is divided by 12 and compounded monthly using value = ₹10,000 × ((1 + 0.10/12)^n − 1) / (0.10/12), where n is years × 12.
- Values exclude fees, taxes, inflation, missed contributions and real-world market volatility.
- No actual scheme, index or historical return series is used.
- The assumed rate is neither an expected return nor a SEBI-endorsed return.
Disclosures
- Investor information for general educational use; not personal financial advice.
- Illustrative or hypothetical figures are identified with their assumptions and are not actual performance.
