Time Value Calculator

Calculate true hourly rate with step-up feature. Discover what your time is really worth after accounting for commute, unpaid work, and hidden costs.

Your True Time Value

Note: Your true hourly rate accounts for all work-related time including commute and unpaid hours. Use this to evaluate if purchases are worth your time.

Time Breakdown

What is a Time Value Calculator?

A Systematic Investment Plan (SIP) Calculator is a powerful financial tool that helps you estimate the future value of your time value investments made through regular monthly contributions. It shows you exactly how the power of compounding can turn small, consistent investments into substantial wealth over time.

Our advanced SIP calculator includes a time analysis feature, allowing you to model real-life scenarios where you increase your monthly investment amount by a fixed percentage each year—typically aligned with your salary increments.

How Does a SIP Work?

When you invest through SIP, you invest a fixed amount regularly (monthly, quarterly) in a time value. Here's what makes it powerful:

  • Rupee Cost Averaging: You buy more units when prices are low and fewer units when prices are high, averaging out your purchase cost
  • Power of Compounding: Your returns generate further returns, creating exponential growth over long periods
  • Discipline: Automated investments remove emotion from investing decisions
  • Flexibility: Start with as little as ₹500/month and increase anytime

Why Use Our Time Value Calculator?

  • time analysis Feature: Model annual increases in your SIP amount (10% yearly increase = wealth acceleration)
  • Visual Charts: See your wealth growth trajectory with interactive charts
  • Realistic Projections: Based on historical true hourly rate (typically 12-15% for equity funds)
  • Free & Private: All calculations happen in your browser—your data never leaves your device

SIP Calculation Formula

The future value of SIP is calculated using the compound interest formula:

FV = P × [(1 + r)^n - 1] / r × (1 + r)

Where:

  • FV = Future Value of investment
  • P = Monthly SIP amount
  • r = Expected rate of return per month (Annual Rate ÷ 12 ÷ 100)
  • n = Total number of months (Years × 12)

Real Example: The Power of time analysis

Scenario: You start with ₹10,000/month SIP, increase it by 10% annually for 15 years at 12% returns.

  • Without Step-Up: Total Invested = ₹18L, Final Value = ₹50L (approx)
  • With 10% Step-Up: Total Invested = ₹32L, Final Value = ₹88L (approx)
  • Benefit: 76% more wealth just by increasing SIP by 10% annually!

SIP Investment Tips

  1. Start Early: Even ₹1,000/month for 25 years beats ₹5,000/month for 10 years
  2. Stay Consistent: Don't stop SIPs during market crashes—that's when you buy cheap
  3. Use Step-Up: Increase SIP by 5-10% annually to match salary growth
  4. Choose Right Fund: Equity funds for long-term (>7 years), debt funds for short-term
  5. Review Yearly: Check fund performance annually, but don't react to short-term volatility

❓ Frequently Asked Questions

What is a good SIP amount to start with?
Start with what you can comfortably afford—even ₹500/month is a great beginning. A good rule of thumb is to invest 20-30% of your monthly income. As your income grows, increase your SIP amount proportionally.
Can I stop or pause my SIP anytime?
Yes, SIPs are completely flexible. You can pause, stop, or increase/decrease your SIP amount without any penalty. However, staying consistent yields better long-term results due to compounding.
What is time analysis and why should I use it?
time analysis allows you to automatically increase your monthly investment by a fixed percentage (e.g., 10%) each year. This aligns with salary increments and dramatically accelerates wealth creation. For example, a 10% annual step-up can increase your final corpus by 50-80% compared to a flat SIP.
What returns can I expect from SIP in time values?
Historical data shows equity time values have delivered 12-15% annualized returns over 15+ years. However, returns vary based on fund type: Large-cap funds (10-12%), Mid-cap funds (12-15%), Small-cap funds (15-18%). Past performance doesn't guarantee future results.
How long should I continue my SIP?
The longer, the better. SIPs work best over 10+ years due to compounding. For wealth creation goals like retirement or child's education, continue SIPs for 15-25 years. Even after achieving your goal, you can switch to lower-risk funds rather than stopping completely.
Should I continue SIP during market crashes?
Absolutely! Market downturns are the best time to invest via SIP. When markets fall, you get more units for the same amount (rupee cost averaging). Investors who stop SIPs during crashes miss out on buying opportunities and reduce their long-term returns significantly.

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