Calculation Methodology

Transparency is the foundation of trust. Here we disclose the exact formulas, data sources, and standard assumptions used across our platform to ensure you make financial decisions with confidence.

Core Principles

1. Standardized Formulas

We use globally accepted financial formulas (e.g., Compound Interest, Amortization) verify against banking standards.

2. Conservative Estimates

When projecting future values, we default to conservative growth rates (e.g., 12% for equity) rather than best-case scenarios.

3. Annual Updates

Tax slabs, exemption limits, and average inflation rates are reviewed annually (last update: Feb 2026).

4. Daily Precision

Interest calculations often use daily compounding logic where applicable for maximum precision.

Formula Disclosures

Loans & Mortgages

Used in: Home Loan, Personal Loan, Car Loan, Mortgage Calculator

EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]

P = Principal Loan Amount
R = Monthly Interest Rate (Annual Rate / 12 / 100)
N = Loan Tenure in Months

Investment Growth

Used in: SIP, Lumpsum, PPF, FD, Compound Interest Calculator

A = P (1 + r/n) ^ (nt)

A = Future Value
P = Principal Investment
r = Annual Interest Rate (decimal)
n = Compounding Frequency (e.g., 12 for monthly)
t = Time in Years

CAGR (Compound Annual Growth Rate)

Used in: Mutual Fund Returns, Portfolio Analysis

CAGR = (Ending Value / Beginning Value) ^ (1 / n) - 1

n = Number of years

Data Sources & Assumptions

Parameter	Default Value	Source / Rationale
Inflation Rate	6.0%	RBI medium-term target upper band
Equity Returns	12.0%	Nifty 50 15-year historical average
Gold Returns	8.0%	Long-term domestic gold price CAGR
Life Expectancy	80 Years	Conservative estimate for retirement planning

Disclaimer

These calculators are designed for informational and planning purposes only. They do not constitute financial advice. Actual returns may vary due to market fluctuations, tax changes, and individual circumstances. We recommend consulting a SEBI-registered investment advisor before making significant financial decisions.

Financial Knowledge Hub

Browse our calculators and guides organized by financial goals. Disciplined planning starts with the right tools.