Disclaimer & Calculation Conventions
Important disclosures regarding financial assumptions, regulatory standards, and calculation formulas.
FinCalc India is an independent mathematical tool provider. We are not a bank, non-banking financial company (NBFC), mutual fund distributor, or SEBI-registered investment advisor. Our tools provide illustrative estimates based solely on user inputs.
Standard Calculation Conventions
Loan & EMI Calculations
Loan installments are computed using the reducing balance method according to the formula: EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1]. Daily interest accrual or advance EMI deductions practiced by certain commercial lenders may cause minor differences with bank statements.
SIP & Mutual Fund Calculations
SIP projections assume monthly compounding with installments credited at the beginning of each cycle (annuity-due). Mutual fund investments are subject to market volatility. Past returns do not guarantee future returns.
Fixed Deposit (FD) Compounding
Fixed deposits are compounded quarterly as per Reserve Bank of India (RBI) conventions for cumulative term deposits. Senior citizen rates reflect the standard 0.50% p.a. premium prevalent in public and private commercial banks.
No Personalized Financial Advice
You should consult a certified financial planner, chartered accountant, or banking relationship manager before entering into major loan commitments, prepayments, or long-term investment decisions.