Glossary
The money words used on our calculators, in plain words. Each one links to the calculator that uses it.
- APR
- Annual Percentage Rate: the yearly cost of a loan including fees. RBI asks lenders to show it in the Key Facts Statement. Personal Loan Calculator
- CAGR
- The steady yearly growth that takes an amount from its start value to its end value. CAGR Calculator
- Compounding
- Earning interest on interest. The more often interest is added, the faster money grows. Interest Calculator
- CTC
- Cost to Company: everything your employer spends on you, including its PF share and gratuity. Your in-hand salary is lower. In-Hand Salary Calculator
- EMI
- Equated Monthly Instalment: the same amount you pay the bank every month. Each EMI pays some interest and repays some of the loan. EMI Calculator
- FIRE
- Financial Independence, Retire Early: saving enough that your investments can pay your expenses for life. FIRE Calculator
- Flat rate
- Interest worked out on the full loan for the whole tenure, even as you repay it. A flat rate of 10% costs about the same as 18% on a reducing balance. Flat vs Reducing Rate Calculator
- FOIR
- Fixed Obligation to Income Ratio: the share of your take-home salary that can go to EMIs. Banks use it to decide how much loan to give. Home Loan Eligibility Calculator
- Gratuity
- A lump sum from your employer when you leave after at least 5 years: 15 days’ wages for each year worked. Gratuity Calculator
- GST
- Goods and Services Tax added to the price of most things you buy. Within a state it is split into CGST and SGST. GST Calculator
- HRA
- House Rent Allowance. In the old regime, part of it is tax-free if you pay rent. HRA Calculator
- Lock-in
- The time you cannot take money out, or can only with a penalty.
- LTV
- Loan-to-value: the loan as a share of the house value. RBI sets the most a bank can lend. Home Loan Eligibility Calculator
- Maturity
- The date a deposit or scheme ends and pays out, or the amount you get then.
- No-cost EMI
- An EMI offer where the shop gives you back the interest as a discount. You still pay GST on that interest and often a fee. No-Cost EMI Calculator
- Old and new tax regime
- Two ways to work out income tax. The new regime has lower slabs but few deductions; the old one allows deductions like section 123 and HRA. Income Tax Calculator 2026-27
- Prepayment
- Paying extra towards the loan, over and above the EMI. It cuts the interest you pay. Home Loan Prepayment Calculator
- Reducing balance rate
- Interest is charged only on the loan amount still left. Banks quote home and personal loans this way. Flat vs Reducing Rate Calculator
- Section 123
- The Income-tax Act, 2025 section (old 80C) for PPF, EPF, ELSS, insurance and similar savings, up to ₹1.5 lakh in the old regime. Income Tax Calculator 2026-27
- SIP
- Systematic Investment Plan: a fixed amount put into a mutual fund every month. SIP Calculator
- Step-up SIP
- A SIP that goes up by a fixed share every year, usually with your salary. Step-up SIP Calculator
- SWP
- Systematic Withdrawal Plan: taking a fixed amount out of a mutual fund every month. SWP Calculator
- Tenure
- How long the loan runs, in months or years.
- XIRR
- Your real yearly return when you put money in at different times, like a SIP with top-ups. XIRR Calculator