How we calculate

Every KitnaBanega result comes from a standard formula and the official rules and rates listed below. This page explains the assumptions, so you know exactly what a number means.

Investments (SIP, step-up SIP, lumpsum, SWP, goal SIP)

SIP: each instalment is invested at the start of the month and grows at the yearly return ÷ 12 every month. Future value = P × [(1 + i)ⁿ − 1] ÷ i × (1 + i).
Step-up SIP: the same, with the monthly amount raised by your chosen percentage at the start of every year.
Lumpsum: amount × (1 + yearly return)^years.
SWP: the withdrawal is taken at the start of each month and the rest earns the yearly return ÷ 12.
Returns you enter are assumptions. Mutual fund returns change every year and are not guaranteed; results ignore expense ratio, exit load and tax unless stated.

Loans (EMI, home, personal, car)

EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1], where r is the yearly rate ÷ 12 ÷ 100 and n the number of months. The schedule splits each EMI into interest on the balance and principal.
Personal loan "money in hand" deducts the processing fee plus 18% GST on it.

Deposits and savings schemes

FD: compounded at the frequency you choose (most banks: every quarter).
RD: each monthly instalment compounds every quarter for the time it stays deposited.
PPF: yearly deposit made by 5 April, compounded yearly, at the government rate of 7.1% for October–December 2026.
EPF / VPF: 12% of basic + DA from you, 3.67% from the employer to EPF, at 8.25% a year, with yearly salary growth you choose.

Tax, HRA and gratuity

Income tax: FY 2026-27 slabs for the new and old regimes, the standard deduction (₹75,000 new, ₹50,000 old), the rebate (full tax relief up to ₹12 lakh taxable income in the new regime, with marginal relief just above), surcharge and 4% cess. Special-rate income such as capital gains is not included.
HRA: the lowest of actual HRA, rent minus 10% of salary, and 50% (metro cities) or 40% (other cities) of salary.
Gratuity: wages × 15 ÷ 26 × years (more than 6 months counts as a full year) for employers covered by the law; ₹20 lakh tax-free for private-sector employees. Under the labour codes in force from 21 November 2025, fixed-term employees qualify after 1 year and allowances above half of total pay count as wages.

Where the rules and rates come from

Small savings rates are set by the government every quarter and tax rules change with each Budget. We check them at least once a quarter; the date of the last check (6 November 2026) is shown on every calculator.

Found a mistake?

Write to hello@kitnabanega.com with the page and the numbers you used. We correct confirmed mistakes quickly.

KitnaBanega gives estimates for learning and planning. It is not financial, tax or investment advice.