Time Value of Money Calculator
Calculate future value or present value of money with monthly contributions and compound interest. Plan savings targets in either direction.
The amount you have now, before any monthly contributions.
Future value
₹14,80,232
Total contributions
₹7,00,000
Interest earned
₹7,80,232
Over 10 years at 12% p.a., compounded monthly
Compounded monthly at 12% p.a., a ₹1,00,000 lump sum with ₹5,000 added monthly grows to about ₹14,80,232 in 10 years — ₹7,80,232 of it interest. Returns are not guaranteed for market-linked products.
Last updated: August 2026
How this calculator is verified
Checked by True Calculator automated test suite on
- Formula verified against a published worked example in the automated test suite
- Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests
The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.
When to Use This Calculator
The time value of money is the idea that a rupee today can grow, and this calculator puts it to work in both directions. Goal planners use future-value mode to project what today's savings plus monthly instalments become, whether for a first car, a wedding or a retirement corpus. Present-value mode works backwards: given a target — ₹50 lakh for a child's education in 12 years — it reveals the lump sum needed today to close the gap after accounting for expected returns. Salaried employees comparing a lump-sum bonus invested now versus later, NRIs planning repatriated savings, and anyone weighing a one-time deposit against a monthly SIP all land on the same question of what money is worth at different points in time. This calculator lets you run the numbers yourself with your own assumptions.
How to Use This Calculator
- Step 1: Choose future value to see what today's money becomes, or present value to find the lump sum needed today.
- Step 2: Enter the lump sum today, or the target future amount in present-value mode.
- Step 3: Enter the monthly contribution, the annual interest rate and the number of years.
- Step 4: Read the future value or the required lump sum, with the interest earned over the period.
Worked Example
A Nagpur investor has ₹1,00,000 saved and plans to add ₹5,000 every month for 10 years, earning 12% p.a. compounded monthly. In future-value mode the calculator returns ₹14,80,232, of which ₹7,00,000 is money actually contributed — ₹1,00,000 plus 120 monthly instalments of ₹5,000 — and ₹7,80,232 is interest earned. Flipping to present-value mode, reaching ₹1,00,00,000 in 10 years at 12% with no monthly contributions requires a single lump sum of ₹30,29,948 today.
Tips and Common Mistakes
- •Tip 1: Compounding monthly matches how Indian savings products and mutual fund SIPs actually accrue.
- •Tip 2: Test two or three return rates — the difference between 10% and 14% compounds into a huge gap over a decade.
- •Tip 3: Use present-value mode for goals with fixed targets like a child's education corpus or a down payment.
- ✗Mistake 1: Entering the rate as a monthly figure — the calculator expects the annual percentage rate.
- ✗Mistake 2: Assuming a fixed return for market-linked products; use a conservative range for planning.
Frequently Asked Questions
What is the time value of money?
A rupee today is worth more than a rupee tomorrow because it can earn interest in between. This calculator moves money across time: future-value mode tells you what today's amount becomes, and present-value mode tells you what a future target is worth today.
How is this different from the SIP calculator?
The SIP calculator focuses on monthly mutual fund instalments. This tool is more general: it also handles lump sums, present-value problems and zero-interest scenarios, and it compounds monthly by default for Indian savings products.
Why does compounding frequency matter?
Compounding monthly means interest earns interest 12 times a year, producing slightly higher returns than annual compounding at the same rate. Indian banks and mutual funds generally compound monthly, so this calculator follows that convention.
Can I use this to plan a retirement corpus?
Yes. In present-value mode, enter your retirement goal as the target future value, your likely monthly contributions, expected return and years left. The calculator shows the lump sum you need today to close any gap.
What does 'interest earned' include?
It is the future value minus everything you actually put in — the lump sum plus all monthly contributions. The difference is pure compounding return, which is useful for seeing how much of your corpus came from interest rather than savings.
Compare these tools
- Future Value Calculator — Find what your money grows into with compound interest at any frequency
- Gratuity Calculator (India) — Calculate gratuity under the Payment of Gratuity Act, 1972 with the 15/26 formula and the ₹20 lakh tax-exempt cap for Indian employees
- GST Calculator (India) — Add or remove GST from any amount, with CGST + SGST split for intra-state and IGST for inter-state supplies
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