SIP Calculator
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Estimate what a monthly Systematic Investment Plan could grow into. Enter your monthly contribution, an expected annual return and the number of years to see your total invested, estimated returns and maturity value.
What a SIP is
A Systematic Investment Plan, or SIP, is the habit of investing a fixed amount at a regular interval — usually monthly — into a fund rather than committing a single lump sum. Each instalment buys units at whatever the price is that month, so you automatically buy more when prices are low and fewer when they are high. That averaging effect, combined with compounding, is what makes disciplined monthly investing powerful over long horizons.
This calculator projects where a steady monthly contribution could end up, splitting the result into the money you put in and the growth on top.
The formula this tool uses
Because you invest every month rather than once, a SIP is valued as the future value of a series of payments — an annuity — not as a single compounding lump sum. The tool converts your annual return into a monthly rate and compounds each instalment for the months remaining until maturity.
It assumes contributions are made at the start of each month (an annuity due), which is the standard convention for SIPs and gives every payment one extra month of growth.
- i = annual return ÷ 12 ÷ 100 (monthly rate)
- n = years × 12 (number of instalments)
- Maturity = P × (((1 + i)ⁿ − 1) ÷ i) × (1 + i)
- Total invested = P × n
- Estimated returns = Maturity − Total invested
SIP versus a lump sum
A lump-sum investment compounds one amount from day one, so with the same rate and horizon it can finish higher than a SIP of the same total — simply because all the money is working from the start. A SIP wins on accessibility and behaviour: you don't need a large sum up front, and spreading purchases smooths out the risk of investing everything just before a downturn.
If you want to model a single one-off investment instead, use a compound interest calculator. This tool is built specifically for recurring monthly contributions.
Things to keep in mind
The projection assumes a constant return every year, which never happens in reality — markets rise and fall. Use a realistic long-run rate rather than a recent hot streak, and consider running the numbers at a conservative and an optimistic rate to see the range.
The figures are also before inflation, fund fees and taxes. Inflation erodes future purchasing power, expense ratios shave a little off returns each year, and tax rules vary by country and account type. Factor those in before relying on the maturity value for a real goal.
Frequently asked questions
What return rate should I assume?
Use a long-term average for the kind of fund you hold rather than last year's result. Broad equity funds have historically returned roughly 7–12% a year over long periods, but future returns are uncertain, so it's wise to test a lower rate too.
How is a SIP different from compound interest on a lump sum?
A SIP invests a new amount every month, so each instalment compounds for a different length of time. A lump sum invests once and compounds the whole balance from day one. This calculator handles the monthly-contribution case.
Does the tool account for inflation?
No. The maturity value is in future nominal money. To judge real purchasing power, mentally discount it by expected inflation or subtract inflation from your assumed return for a rough real figure.
What happens if I set the return to zero?
With a 0% return the maturity value simply equals your total contributions — monthly amount times the number of months — since there is no growth to compound.
Can I change my monthly amount later?
The calculator assumes a fixed monthly contribution for the whole period. To model a step-up SIP where you increase the amount over time, run separate calculations for each stage and add the results.
Are the returns taxed?
That depends on your jurisdiction, the fund type and how long you hold it. This tool shows pre-tax figures, so check the capital gains rules that apply to you before treating the maturity value as spendable.
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