Calculation Methodology and Assumptions

All calculators on PlanMyReturns are educational and planning tools. They help you compare scenarios and understand possible outcomes based on the inputs you provide. They do not predict real world results and they do not guarantee any outcome.

The approach is consistent across every category: clear formulas, defined assumptions, and no hidden variables. Each section below describes how the calculations work and what is assumed, so you can interpret results correctly and choose suitable inputs.

Global assumptions used across all calculators

Unless a specific calculator states otherwise:

• Inputs are accepted as provided and are treated as constant throughout the calculation.
• Payments, contributions, and EMIs are assumed to be made on schedule, with no missed or late entries.
• Interest, growth, tax, and rate assumptions are based on current rules or common standards where applicable.
• Future changes in law, tax slabs, scheme rates, or market returns are not included.
• All outputs are rounded to the nearest rupee for readability.

Investment and wealth calculators

These tools estimate the future value of investments using the inputs you enter and standard financial formulas. Market linked returns are illustrative and are not guaranteed.

SIP Calculator

Assumes monthly contributions at the start of each period with monthly compounding.

Lumpsum Calculator

Assumes a single deposit at the start with annual compounding.

The ELSS Calculator and Stock Average Calculator use standard investment return logic based on your inputs. The Crorepati Calculator and FIRE Calculator build on the same logic, with lifestyle or retirement goals factored in.

Savings and small savings schemes

These tools follow official compound interest rules for fixed income products and government schemes.

The FD Calculator and RD Calculator assume standard compounding as used by most banks. Government schemes such as the PPF Calculator, NPS Calculator, SSY Calculator, and EPF Calculator use annual compounding based on notified rates. Pension values are indicative and actual benefits may differ. Other schemes such as Post Office RD, NSC, MIS, SCSS, and KVP follow their respective official compounding and payout schedules.

Loans and EMI tools

Loan tools use standard financial math to work out EMIs, eligibility, and repayment scenarios.

EMI calculators compute the equated monthly instalment using the formula below.

Here P is the principal, n is the number of monthly payments, and r is the monthly interest rate. Fees, insurance, taxes, and other add-ons are not assumed unless a tool states so.

The Loan Prepayment Calculator applies prepayment directly to the principal and recalculates the remaining tenure or EMI, with no foreclosure penalty assumed. The Home Loan Overdraft Calculator models how an overdraft affects interest cost. The Loan Eligibility Calculator estimates borrowing capacity from income, obligations, interest rate, and tenure. Final lender approval may vary.

Tax and salary calculators

These tools follow current tax rules and statutory formulas. Where relevant, the Old and New tax regimes are calculated so you can compare them.

The Income Tax Calculator and Marginal Relief Tax Calculator estimate liability using prevailing slabs and rules. The HRA Exemption Calculator uses the statutory least-of method. The TDS Calculator and Advance Tax Calculator estimate liability based on the income segments you declare. Salary tools such as the Take Home Salary Calculator, Salary Hike Calculator, Leave Salary Payout Calculator, and 8th Pay Commission Salary Calculator follow standard payroll rules.

Gratuity

The Gratuity Calculator uses the statutory formula for eligible employees.

Goal planning and inflation

Tools in this category use future value formulas, adjusted for inflation where relevant.

The Retirement Calculator estimates the corpus needed and the savings required to reach it. Life stage tools such as the Education Planning Calculator, Marriage Planning Calculator, Dream Home Calculator, and Vacation Planning Calculator estimate a target corpus based on your target date and an inflation assumption. The Emergency Fund Calculator bases coverage on monthly expenses and a desired coverage period. The Inflation Calculator uses compound inflation over the chosen time horizon.

Insurance and ULIP tools

Insurance tools use published benefit illustrations or standard models. LIC plan calculators and the Saral Jeevan Bima Premium Calculator use benefit schedules and historical bonus assumptions, so actual bonuses and benefits may differ. The ULIP Returns Calculator estimates returns using assumed fund performance and charges. Market linked returns are not guaranteed.

Portfolio and real estate tools

The Asset Allocation Calculator splits a portfolio into portions based on percentages you define. The Buy vs Rent Calculator compares the opportunity cost of investing against the cost of ownership using standard financial assumptions. The Telangana Property Registration Charges Calculator applies state-specific rules for registration fees.

Pension and government welfare tools

The UPS Pension Calculator, NPS Vatsalya Calculator, and related scheme tools follow published contribution and payout rules. Welfare scheme tools such as the PM Vishwakarma Scheme Loan EMI Calculator and the PMAY 2.0 Subsidy Calculator follow the relevant scheme guidelines for eligibility and benefits. Eligibility shown is indicative and subject to official verification.

International calculators

The HSA Contribution Calculator and the 401(k) Employer Match Calculator use published contribution limits and match rules. Any tax benefits shown are indicative and specific to the relevant jurisdiction.