Future value of a goal is calculated using the inflation rate. Please note that some goals are single year goals while some are multi year goals. A couple of examples will help you get clarity.
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Eg. 1: Single Year Goal:
- Kid's Marriage Goal.
- Goal Year: 2025.
- Goal Present Value: Rs.10,00,000.
Based on this, the goal Future Value in the goal year will be calculated by growing it at the rate of Inflation assumed till 2025. The amount you see on the goal tracker is the future value as on 2025 and the same will be higher than Rs.10,00,000 (Assuming inflation rate >0).
- Eg. 2: Multi Year Goal:
- Retirement Goal.
- Goal Year: 2035-65.
- Annual Goal Present Value: Rs.6,00,000.
Based on this, the goal Future Value in the goal year will be calculated by growing it at the rate of Inflation assumed. Only difference is that for multi year goal we show you a single amount as on the first goal year. i.e. 2035 in this case. This amount is what you need to accumulate as on the first goal year such that all the amount required in successive goal years will be taken care of.