How the Monthly Savings Calculator Helps
This tool turns your monthly budget into an actionable plan. It totals your essential and lifestyle expenses, shows your surplus, and lets you test a savings plan with step-up contributions and one-time top-ups. We project your corpus using an annual yield (APY) and also show the inflation-adjusted “real value” so you know what today’s purchasing power looks like at your target date.
- Step-up savings grows your monthly contribution by a fixed % every 12 months (e.g., salary increments).
- Top-ups simulate bonuses or windfalls (format: month:amount; month:amount).
- APY computes monthly compounding for growth; inflation discounts the future corpus to today’s value.
Advantages & Disadvantages
Advantages
- Clear budgeting: Know exactly where money goes each month.
- Goal alignment: Check if your plan meets your target corpus and by when.
- Flexible planning: Step-up savings and top-ups mimic real income patterns.
- Realistic growth: Net of inflation view avoids overestimating future purchasing power.
- Exportable: Download the month-wise schedule for record-keeping.
Disadvantages
- Assumption sensitivity: Returns and inflation vary; actual results may differ.
- Discipline required: Success depends on sticking to the plan (avoid lifestyle creep).
- Irregular cashflows: Large unexpected expenses can derail short-term goals.
- Tax impact: Tool doesn’t compute taxes on investment returns; consider that in real life.
ClickLends tip: Automate your savings on salary credit day. Review the budget quarterly and raise your step-up % after every increment.
Monthly Savings – FAQs
How do you calculate monthly corpus growth?
We add your chosen savings (plus step-ups/top-ups) each month and compound the balance using APY converted to a monthly rate.
What is step-up savings?
Your monthly savings automatically increases by a % every 12 months to model salary growth.
How do top-ups work?
Enter items like 6:50000; 18:25000 to inject extra savings in those months.
What does “real value” mean?
It discounts the future corpus by your inflation assumption to show today’s purchasing power.
How do you compute monthly surplus?
Net income minus total expenses (housing, food, transport, utilities, EMIs, insurance, discretionary, other).
What is the emergency fund number?
We multiply your monthly expenses by your chosen months (e.g., 6) to suggest a safety buffer.
What APY should I use?
Use the average expected return of where you’ll save/invest (e.g., 6–7% for high-quality debt, higher for equity with volatility).
Why does the graph look linear?
At modest APY and step-ups, early months look near-linear; compounding impact grows with time and higher returns.
Can I hit a target by a certain date?
Yes—enter the target corpus and months; the insight tells you if you’re on track, early, or short.
Can I export the schedule?
Yes—use “Download Projection CSV”.
Does this include taxes?
No. Tax treatment varies by product; consider regime and instrument choice separately.
What if I get a salary hike mid-year?
Use a top-up in that month and/or increase the step-up % from next year.
Is this financial advice?
No—it’s an educational tool. Consider consulting a SEBI-registered advisor for personalised advice.
How should I allocate savings?
Split into emergency fund, short-term goals (debt/fixed income), and long-term goals (equity/debt mix).
How do I start investing?
Click “Invest Now”, fill the form, and we’ll help you choose suitable options.