| Scenario | Plan | PV | FV | APR | Years | Payments/Year | Estimated Payment |
|---|---|---|---|---|---|---|---|
| Emergency fund build | Savings | ₨ 10,000 | ₨ 50,000 | 8.0% | 5 | 12 | ₨ 524.50 (approx.) |
| Loan balance goal | Loan | ₨ 300,000 | ₨ 0 | 18.0% | 3 | 12 | ₨ 10,844.00 (approx.) |
| Quarterly savings plan | Savings | ₨ 0 | ₨ 200,000 | 10.0% | 4 | 4 | ₨ 11,482.00 (approx.) |
- Choose a plan type: grow savings or reduce a balance.
- Enter your current amount (PV) and the target amount (FV).
- Set APR, duration, payment frequency, and compounding frequency.
- Select payment timing and rounding that match your real plan.
- Press Calculate, review the summary and schedule preview.
- Download CSV or PDF to save and share the results.
Payment size versus timeline
For savings, shortening the horizon increases the required contribution quickly. Example: PV ₨10,000 to FV ₨50,000 at 8% with monthly payments needs about ₨525 for 5 years. The same goal in 4 years rises to roughly ₨640, because there are 12 fewer deposits and less time for interest. Extending to 6 years can drop the payment near ₨450.
Compounding frequency impact
Nominal APR can compound at different speeds. At 8% with monthly payments, monthly compounding gives an effective period rate near 0.643%. Daily compounding with the same APR nudges the effective monthly rate closer to 0.665%. On long plans, that small change can shift the required payment by several percent. When comparing products, vary compounding to see spread, even if the quote looks identical initially.
Beginning-of-period timing effect
Paying at the beginning of each period is mathematically an annuity due. Because each payment earns interest for one extra period, the payment needed to reach a target is lower. With a 0.65% period rate, the reduction is about 0.65% versus end-of-period timing, which is meaningful on high-frequency schedules. For weekly plans, the gain is smaller but frequent.
Rounding and the target gap
Real payments are often rounded. Rounding to tens on a 120‑month plan can change the ending balance by hundreds or thousands, depending on rate and target. The calculator recomputes the ending balance using the rounded payment and reports an estimated gap so you can adjust upward or downward. Rule: round up for goals and faster payoff.
Using the schedule for decisions
The preview table shows how interest and contributions accumulate. In a loan example of ₨300,000 at 18% over 36 months, the first month’s interest is about ₨4,500, so most early cash flow goes to interest. Over time, the interest portion falls and principal reduction accelerates. For savings, the opposite pattern appears: interest starts small, then becomes a larger share as the balance grows.
1) What do PV and FV represent in this tool?
PV is the amount you have today, such as savings balance or loan principal. FV is the target future balance you want to reach, or the remaining balance you want to keep on a loan.
2) Why did the calculator show a negative payment?
A negative payment usually means your inputs already meet the goal. For savings, PV and growth may exceed FV. For loans, a higher FV than PV implies no paydown is required for that target.
3) How is APR converted to a per‑period rate?
It computes an effective rate per payment period using compounding: r = (1 + APR/m)^(m/p) − 1, where m is compounding per year and p is payments per year.
4) What’s the difference between payments per year and compounds per year?
Payments per year is how often you add or pay cash. Compounds per year is how often interest is applied. They can differ, such as monthly payments with daily compounding.
5) When should I use beginning‑of‑period timing?
Choose it if you deposit on payday or make payments at the start of a billing cycle. Beginning timing lowers the required payment for the same target because each payment earns interest sooner.
6) Why does the ending balance differ slightly from my target?
Rounding and sampling can shift results. The calculator recomputes the ending balance using the rounded payment and reports the gap. If the gap matters, adjust the payment slightly and recalculate.