Finance · Popular

SIP Calculator

A clean SIP calculator that projects the long-term value of monthly investments. Enter your contribution, expected return, and tenure — see invested vs returns broken down with a year-by-year table.

Monthly investment $5,000

$500$100k

Expected annual return 12.0%

1%30%

Tenure 10 years

1 yr40 yr

Future value

$1,161,695

Total invested

$600,000

Est. returns

$561,695

Invested 52%

Returns 48%

Year-by-year growth

Year	Invested	Value

Disclaimer. Projected returns are estimates based on your inputs and standard formulas. They are not investment advice or guarantees of future performance.

Method

How this calculator works

A SIP grows because each contribution earns returns on the contributions before it. The further out a contribution sits, the more compounding it accumulates — that is why early years feel slow but later years feel exponential.

FV = P × ((1+r)ⁿ − 1) / r × (1+r)

P  = monthly investment
r  = annual rate / 12 / 100   (monthly rate)
n  = tenure in months
FV = future value

Enter the monthly amount you plan to invest.
Enter the annual return rate you expect (use a conservative figure for safety).
Enter the tenure in years — the longer the better, because compounding scales with time.
The calculator multiplies your contribution by the SIP future-value formula and outputs the projected portfolio value.
It also splits the result into "invested" (your money) and "returns" (the markets did this) so you can see how compounding takes over.

Examples

Worked examples

Real numbers, end-to-end results.

$5,000/month · 12% return · 10 years

Future value ≈ $1.16M · Returns ≈ $562k

Total invested $600,000.

$10,000/month · 10% return · 20 years

Future value ≈ $7.65M · Returns ≈ $5.25M

Compounding does most of the work.

$2,000/month · 8% return · 5 years

Future value ≈ $147k · Returns ≈ $27k

Short tenures give compounding little time to work.

Use cases

When to use it

Plan retirement contributions and see the impact of starting earlier.
Compare two strategies — for example, $5k/mo for 30 years vs $10k/mo for 15.
Estimate the SIP needed to reach a specific goal (down payment, education, FIRE).
Demonstrate the power of compounding to a friend or junior colleague.

FAQ

Frequently asked questions

What is a SIP?

A Systematic Investment Plan is a way to invest a fixed amount in mutual funds (or other instruments) at regular intervals — typically monthly. It is the disciplined-investing equivalent of dollar-cost averaging.

How does this calculator estimate returns?

It uses the standard SIP future-value formula: FV = P × ((1+r)^n − 1) / r × (1+r), where P is the monthly contribution, r is the monthly rate (annual rate ÷ 12 ÷ 100), and n is the number of months. It assumes contributions are made at the start of each period.

Why is the future value not guaranteed?

Real markets are volatile. The expected-return slider is a long-term average — your actual returns will fluctuate year to year. Use the calculator to set realistic expectations, not as a forecast.

What return rate should I assume?

Equity mutual funds historically average 10–14% annually over long horizons; debt funds 6–8%; hybrid funds in between. Always model with a conservative rate alongside your optimistic one.

Should I increase my SIP each year?

A "step-up SIP" — increasing the amount by 5–10% annually — significantly boosts the future value. This calculator models a flat contribution; multiply your final number by ~1.5–2× to approximate a stepped-up plan.