Frequently Asked Questions
❓ 1. What is net worth?
Net worth = Assets – Liabilities
Assets include:
- Bank balance
- SIP value
- Shares
- Land
- Gold
- Real estate
Liabilities include:
- Loans
- Outstanding EMIs
- Credit card debt
❓ 2. What is CAGR? Why do we use it?
CAGR (Compound Annual Growth Rate) shows how your investment grows on average every year.
Formula:
CAGR = ((Final Value / Initial Value)^(1/n)) - 1
We use CAGR because:
- SIPs and mutual funds grow non-linearly
- Returns compound over time
- Easier to estimate long-term growth
❓ 3. How do you calculate SIP growth?
Monthly rate:
r = (1 + CAGR)^(1/12) - 1
Portfolio:
V_m = (V_(m-1) × (1 + r)) + SIP
❓ 4. Can I add multiple SIPs or investments?
Yes. You can add unlimited:
- SIPs
- Lump sums
- Assets
- Loans
Each gets calculated separately.
❓ 5. How do withdrawals affect net worth?
When you withdraw:
- We reduce your corpus
- Remaining funds continue compounding
- SIP continues unless you stop it
❓ 6. How do loans affect my future?
Loans reduce net worth because:
- You pay interest
- EMI goes out every month
- Asset value may or may not appreciate
❓ 7. Is this calculator accurate?
We use:
- Standard EMI formulas
- Industry-standard CAGR math
- Monthly compounding
- Correct proportional asset deduction rules
This is the most accurate net worth simulation model available to consumers.
❓ 8. Who should use this?
- Salaried employees
- Small business owners
- Anyone earning ₹0 to ₹30 lakh per year
- People planning retirement early
- People buying a home or car
- SIP investors
- Anyone curious about their future money
❓ 9. Is my data safe?
We do NOT store your data.
Everything runs inside your browser.