Goal-Based Savings Planner with Inflation Adjustment
✓ Goal Planning - Calculate monthly savings needed for your target
✓ Compound Interest - Watch your money grow exponentially
✓ Inflation Adjusted - Know the real purchasing power of your savings
✓ Multiple Scenarios - Compare different savings strategies
Amount in 5 years
Purchasing power at 6% inflation
Impact: Inflation of 6% will reduce your purchasing power by ₹2.53 L
A Savings Calculator helps you plan and achieve your financial goals by calculating how much you need to save monthly or showing how your savings will grow over time with compound interest. It factors in inflation to show real purchasing power.
Our calculator offers Goal-Based Mode (set target, find monthly savings) and Amount-Based Mode (set monthly, see future value). Track year-wise growth, compare scenarios, and make informed savings decisions for house, car, education, retirement, or emergency fund.
Compound interest means earning interest on your interest. Unlike simple interest (calculated only on principal), compound interest grows exponentially because each period's interest is added to the principal for the next period.
FV = P × [((1+r)^n - 1) / r] × (1+r)
Where: P=monthly deposit, r=monthly rate, n=months
Total Deposited: ₹12,00,000 (₹10K × 120 months)
Simple Interest: ₹10,80,000 total (only ₹0.96L interest)
Compound Interest: ₹18,29,460 total (₹6.3L interest!)
Difference: ₹6.49 lakh more - That's the power of compounding!
Age 25 vs Age 35 - Both want ₹1 crore at 60:
Start at 25 (35 years)
Monthly savings: ₹3,000
Total invested: ₹12.6L
Start at 35 (25 years)
Monthly savings: ₹8,000
Total invested: ₹24L
Starting 10 years early saves you ₹11.4L!
Inflation is the rate at which prices increase, reducing the purchasing power of money. What costs ₹100 today will cost ₹179 in 10 years at 6% inflation.
Inflation Examples (6% annual):
Nominal Value: Actual amount you will have (face value)
Real Value: What it can actually buy in today's terms
Formula: Real Value = Nominal / (1 + Inflation)^Years
Example: ₹20L in 10Y with 6% inflation
Real Value = ₹20L / (1.06)^10 = ₹11.2L today's value
| Investment | Return | Real |
|---|---|---|
| Savings A/C | 3-4% | -2 to -3% |
| Fixed Deposit | 6-7% | 0 to +1% |
| PPF/NSC | 7-7.7% | +1 to +2% |
| Debt Funds | 7-9% | +1 to +3% |
| Equity Funds | 12-15% | +6 to +9% |
*Assuming 6% inflation. Real return = Nominal - Inflation
| Financial Goal | Target Amount | Time Period | Return Rate | Monthly Savings |
|---|---|---|---|---|
| Emergency Fund | ₹2.4 Lakh | 1 Year | 4% | ₹19,700 |
| Car Purchase | ₹8 Lakh | 3 Years | 7% | ₹19,500 |
| House Down Payment | ₹20 Lakh | 5 Years | 8% | ₹27,300 |
| Wedding | ₹10 Lakh | 5 Years | 8% | ₹13,700 |
| Child Education | ₹25 Lakh | 15 Years | 10% | ₹7,200 |
| Retirement Corpus | ₹1 Crore | 25 Years | 12% | ₹10,500 |
| World Tour Vacation | ₹5 Lakh | 3 Years | 7% | ₹12,200 |
Note: Calculations assume monthly deposits at beginning of month with compound interest. Adjust based on your risk appetite and investment choice.
Automate savings on salary day. Save before spending, not with leftover money.
50% needs, 30% wants, 20% savings. Minimum 20% of income to savings/investments.
Even ₹500/month matters. Consistency beats amount - start now, increase later.
Build 6 months expenses in liquid form before long-term investments.
Got salary hike? Increase savings by 50% of hike amount. Lifestyle inflation killer.
Use expense tracking apps. Small leaks sink big ships - cut unnecessary expenses.
Live below means, not at means. Millionaires drive old cars, not luxury ones.
Don't put all eggs in one basket. Mix FD, PPF, equity, gold for balance.
Check progress every 3 months. Adjust strategies if not on track to goals.
Patience + Consistency = Wealth. No shortcuts, just compound interest magic.
Our savings calculator works in two modes: (1) Goal-Based Mode: Set your savings target (e.g., ₹10 lakh in 5 years) and the calculator tells you how much to save monthly. Perfect for planning specific goals like home down payment, car purchase, wedding, or emergency fund. (2) Amount-Based Mode: Set how much you can save monthly (e.g., ₹10,000/month) and see how much you will accumulate over time. Use this to understand your wealth-building potential with current savings capacity. Both modes calculate with compound interest, factor in initial deposit, and show inflation-adjusted real value. Choose Goal-Based when you have a target, Amount-Based to see growth potential.
Compound interest means earning interest on both your principal AND accumulated interest. Example: Save ₹10,000/month at 8% annual return for 10 years. Simple interest would give ₹10.8L (₹12L saved + ₹0.96L interest). Compound interest gives ₹18.3L (₹12L saved + ₹6.3L interest) - 6.5X more returns! Formula: FV = P × [((1+r)^n - 1)/r] × (1+r), where P=monthly deposit, r=monthly rate, n=months. Power of compounding: First year interest is small, but by year 10, your interest earns more than your deposits. Einstein called it "8th wonder of world" - start early, save regularly, and let time multiply your money exponentially.
Inflation reduces purchasing power over time. If you save ₹10 lakh today but inflation is 6% annually, in 10 years you will need ₹17.9L to buy the same things. Real Value calculation: If you save and accumulate ₹20L in 10 years at 8% return with 6% inflation, Real Value = ₹20L / (1.06)^10 = ₹11.2L in today terms. Key insight: Only returns ABOVE inflation create real wealth. 8% return with 6% inflation = 2% real growth. Target investments that beat inflation by 3-5%: FDs (7%) barely beat inflation, equity (12%+) creates real wealth. Always calculate real value to know true purchasing power of your future savings.
Interest rates by investment type: (1) Savings Account: 3-4% - only for emergency fund, not for goals. (2) Fixed Deposit: 6-7% - safe for short-term (1-3 years) goals with guaranteed returns. (3) Recurring Deposit: 6-7% - good for disciplined monthly savings, similar to FD. (4) PPF/NSC: 7-7.7% - tax-free long-term (5-15 years) for conservative investors. (5) Debt Mutual Funds: 7-9% - for 3+ year goals, tax efficient after 3 years. (6) Balanced Funds: 9-11% - mix of debt and equity, moderate risk for 5+ years. (7) Equity Mutual Funds: 12-15% - high returns for 7+ years, higher volatility. (8) Gold: 8-10% - inflation hedge, volatile short-term. Use conservative rates (6-7%) for must-achieve goals, higher rates (10-12%) for long-term wealth building with equity allocation.
Emergency Fund (Priority #1): Save 6 months of expenses in liquid funds. If monthly expenses = ₹40K, target = ₹2.4L. Monthly savings needed: ₹20K for 12 months (in savings account/liquid fund). Common Financial Goals with savings required (at 8% return): (1) House Down Payment (₹20L in 5 years): Save ₹27,300/month. (2) Car Purchase (₹8L in 3 years): Save ₹19,500/month. (3) Child Education (₹25L in 15 years): Save ₹7,200/month. (4) Retirement (₹1 Cr in 25 years): Save ₹10,500/month. (5) Wedding (₹10L in 5 years): Save ₹13,700/month. Thumb rule: Save minimum 20% of income - 10% for goals, 10% for retirement. If earning ₹1L/month, save ₹20K minimum. Increase by 10% annually with salary hikes.
Follow this priority order: (1) Build ₹50K-1L basic emergency buffer first (2-3 months), (2) Pay off high-interest debt (credit cards 36%+, personal loans 15%+) - returns are guaranteed!, (3) Build full 6-month emergency fund in savings account, (4) Start retirement savings (PPF/NPS) to not lose years of compounding, (5) Pay off medium-interest loans (home loan 8-9%, car loan 10-12%) while investing parallelly, (6) Invest for other goals (education, house down payment, vacation). Why pay debt first? If credit card charges 36% and FD gives 7%, you save 36% by paying debt vs earning 7% by investing - 5X better! Exception: Don pay off low-interest home loans (8%) early if you can earn 12% in equity - build wealth faster. Math: If home loan EMI is ₹30K at 8%, invest extra ₹10K in equity at 12% instead of prepaying - in 10 years, you will be ₹8L richer!