A single deposit, left alone. The interest itself starts earning interest. The longer the runway, the more violent the curve at the end.
Each preset is a deliberate compounding bet — long runway, equity-like return.
Compounding is non-linear. Small changes in either rate or runway → outsized end-state differences.
| Rate ↓ / Years → | 15Y | 18Y | 20Y | 25Y | 30Y |
|---|---|---|---|---|---|
| 8.0% | ₹3.17 L | ₹4.00 L | ₹4.66 L | ₹6.85 L | ₹10.06 L |
| 9.5% | ₹3.90 L | ₹5.12 L | ₹6.14 L | ₹9.67 L | ₹15.22 L |
| 11.0% | ₹4.78 L | ₹6.54 L | ₹8.06 L | ₹13.59 L | ₹22.89 L |
| 12.5% | ₹5.85 L | ₹8.33 L | ₹10.55 L | ₹19.00 L | ₹34.24 L |
| 14.0% | ₹7.14 L | ₹10.58 L | ₹13.74 L | ₹26.46 L | ₹50.95 L |
FV = P × (1 + r/n)n×t for discrete compounding (annual / monthly / etc.), or FV = P × er×t for continuous compounding. n = compounding frequency per year, t = years, r = annual rate as decimal.
Continuous comp is the upper bound. The difference between annual and continuous over 20 years at 11% is ~3-4% of the final corpus — small, but real.
The real-value figure deflates by 6% per year (RBI's upper CPI target). Equity returns over 20+ years typically outpace inflation by 5-8 percentage points — that's the compounding edge.
Caveat: this is a deterministic projection. Real markets do not deliver a constant 11% every year. The actual return path matters less for lumpsum than for SIP (no sequence-of-returns risk), but a 30% drawdown in year 19 still hurts.
Further reading: The compound effect — a long-form walkthrough.
Calculators on this site use the inputs you provide and the assumptions disclosed in their methodology. Returns are not promised or guaranteed. MintByte is an AMFI-registered mutual fund distributor (ARN-314872). MintByte does not issue buy/sell recommendations on specific securities — the site is an educational data and analytics platform. Not investment advice. Methodology · How we earn.