Calculation Methodology & Formulas

All financial calculators on SmartPaisaTools.in execute open, standard mathematical formulas accepted by banking institutions and financial planners in India. Below is the technical breakdown of our primary calculation engines:

1. Loan EMI Formula (Reducing Balance)

EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]

Where P = Principal Amount, R = Monthly Interest Rate (Annual Rate / 12 / 100), and N = Total Tenure in Months.

2. Mutual Fund SIP Future Value Formula

FV = P x [{(1+i)^n - 1} / i] x (1+i)

Where P = Monthly SIP Installment, i = Monthly Interest Rate (Annual Rate / 12 / 100), and n = Total Months.

3. Compound Annual Growth Rate (CAGR)

CAGR = (Ending Value / Beginning Value) ^ (1 / Years) - 1

4. Fixed Deposit Quarterly Compounding

A = P x (1 + r/4) ^ (4n)

Where r = Annual Interest Rate, and n = Duration in Years.