How FUMONEY Calculates Everything

FUMONEY uses category-specific inflation rates (based on historical Indian data): • General inflation: 6% per year • Education inflation: 9% per year • Medical inflation: 11% per year • Lifestyle / real estate: 7% per year When you set a goal, FUMONEY uses the appropriate rate to calculate how much that goal will cost at your target date.

FUMONEY uses these post-tax return assumptions: • Equity (mutual funds, stocks): 12% per year • Debt (FDs, bonds, PPF): 7% per year • Gold: 6% per year These are long-term historical averages, not guarantees. Short-term market returns will vary significantly.

Future Value = Present Value × (1 + inflation rate) ^ years Example: A car costing ₹10L today, with 7% inflation, in 5 years: FV = ₹10L × (1.07)^5 = ₹14.03L This is why FUMONEY shows a future cost higher than today's cost for all goals.

SIP Required = Goal Amount × (monthly rate) ÷ ((1 + monthly rate)^months − 1) Where monthly rate = annual return ÷ 12, and months = years to goal × 12. This is the standard SIP formula used by all financial institutions.

FUMONEY uses 35× your inflation-adjusted annual retirement expense as your required corpus. The globally accepted benchmark is 25× (4% Safe Withdrawal Rate), but India demands more conservatism: medical inflation runs at 11%, life expectancy is rising fast, and sequence-of-returns risk is amplified in volatile emerging markets. 35× implies a ~2.86% withdrawal rate — a buffer that accounts for uncertainty without requiring impossible savings.

All projections in FUMONEY assume: • Consistent monthly investments without breaks • Inflation and return rates remain close to historical averages • No major life shocks (job loss, health emergency) Real life is unpredictable. Treat these numbers as a baseline plan, not a guaranteed outcome. Review and update your plan at least once a year.