T/02Tool

Monthly investing

The habit most people actually use: invest the same amount every month. Add a yearly increase and see the difference it makes.

Your plan

Monthly investment

Years investing

Expected yearly return

Yearly contribution increase

A common habit: raise your monthly investment whenever your income rises.

Assumed inflation

Final value: $190.2K
Total invested: $60K
Growth earned: $130.2K
In today's money: $90.8K; After 3% inflation

Consistency compounds

Contributions
Growth

The same monthly habit, repeated. Most of the final value in long plans comes from growth, not contributions.

01Method

How this works.

Every month: balance = balance × (1 + r ÷ 12) + contribution. With a step-up, the contribution rises by the step-up percentage once a year. In India this habit is called a SIP (systematic investment plan); in the US, dollar-cost averaging.

What it assumes

A constant yearly return. Real returns vary year to year.
Contributions are made at the end of each month and never skipped.
No fund fees (expense ratio), taxes, or exit loads.
The inflation-adjusted view uses one constant inflation rate.

Worked example

Invest $200 a month for 25 years at an assumed 8% a year and you end with about $190,205 from $60,000 of contributions. Raise the monthly amount by 10% each year (a step-up) and the result becomes about $511,828 from $236,033.

Invest ₹17,000 a month for 25 years at an assumed 8% a year and you end with about ₹1,61,67,449 from ₹51,00,000 of contributions. Raise the monthly amount by 10% each year (a step-up) and the result becomes about ₹4,35,05,378 from ₹2,00,62,800.

Learn the idea behind it

Terms used here: SIP, Dollar-cost averaging, Index fund, Expense ratio.

Every number here is a simplified illustration based on the inputs you choose. Returns are not guaranteed and real markets vary — sometimes a lot — year to year. This is education, not financial advice.