Deposits assumed at end of each month; monthly compounding.
FIRE – Formula & Assumptions
Target corpus ≈ Annual expense / Safe Withdrawal Rate
Example: SWR = 4% → corpus = expenses × 25
Assumes constant inflation & withdrawal rate; sequence of returns not modeled.
CAGR – Formula & Assumptions
CAGR = (FV / PV)^(1 / years) − 1
FV = future value
PV = present value
Assumes smooth growth; ignores cash inflows/outflows between start and end.
EMI – Formula & Assumptions
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
P = principal
r = (annual rate / 100) / 12
n = months (tenure × 12)
Reducing balance method; interest calculated monthly; no prepayments or fees.
EPF – Formula & Assumptions
Monthly EPF = (Basic × rate_emp + Basic × rate_er) + interest
Interest is applied monthly on running balance at declared annual rate.
Uses constant annual EPF rate for illustration; actual rate is notified yearly.
SWP vs FD – Method
We simulate month-by-month:
• SWP: balance grows at i (monthly), then withdraw W.
• FD: interest at i_fd (monthly), withdraw W from principal+interest.
Compares survival months and leftover corpus; tax and penalties not included.
Lumpsum vs SIP – Method
Lumpsum FV = P × (1 + i)^n
SIP FV = PMT × ((1 + i)^n − 1) / i
i = monthly rate = (annual / 100) / 12
n = months
Same annual rate for both unless you choose different inputs; ignores fees/taxes.
