Methodology & Accuracy

At FinCalculator.cloud, we believe in transparency. Unlike many black-box calculators, we publish the exact formulas and assumptions used in our tools so you can verify the results yourself.

1. SIP (Systematic Investment Plan)

Formula: Future Value of Series

M = P × [{(1 + i)^n - 1} / i] × (1 + i)

Where i is monthly interest rate, n is total months.

2. EMI (Equated Monthly Installment)

Method: Reducing Balance Method (Standard for Indian Banks)

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

3. Income Tax

Source: Income Tax Department, Govt of India (FY 2024-25 Slabs).

We automatically apply the Standard Deduction (₹50k/₹75k) and Rebate u/s 87A based on the regime selected. Surcharge is ignored for simplicity in basic inputs but alerts act as reminders for high net-worth individuals.

4. Gratuity

Act: Payment of Gratuity Act, 1972

G = (Basic + DA) × 15/26 × Years

Disclaimer on Accuracy

While we strive for 100% accuracy, financial rules (especially Tax and PPF rates) change frequently. We update our backend regularly, but always check the "Last Updated" date on our articles.