How this calculator works
The model applies a monthly periodic return to recurring cash flows and supports the corresponding annuity-due adjustment for beginning-of-period contributions.
Formula
FV = PMT × ((1+r)^n - 1)/r × timingFactorFuture value of equal monthly contributions. Beginning-of-period contributions multiply the ordinary-annuity value by (1+r).
Worked example
$10,000 monthly for 10 years at 10% estimated annual return (beginning of month) is a verified test case used by the calculation engine.
Assumptions and limitations
- The assumed return is constant and converted to a monthly periodic rate.
- Contributions are equal each month.
- Taxes, fees and market volatility are not modeled.
Methodology & sources
This calculator uses deterministic, versioned calculation logic. The formula and verified examples above are part of the calculation definition used by CalcuMint.
Frequently asked questions
Can I calculate the SIP needed for a target?
Yes. The reverse solver calculates the level monthly contribution implied by the target corpus, term, assumed return and contribution timing.
Does this calculator forecast market returns?
No. It applies the annual return you enter as a deterministic scenario and does not predict investment performance.