SIP Calculator

How to use it

A Systematic Investment Plan (SIP) is a fixed amount invested at a regular interval — typically monthly — into a mutual fund, instead of investing everything at once. Use it to plan a monthly contribution toward a retirement fund, a house deposit, or a child's education fund, and see how far consistent investing gets you over time. This calculator uses the standard SIP future-value formula for monthly contributions made at the start of each month (the annuity-due convention most SIP platforms use): future value equals the monthly investment multiplied by [((1 + i)^n − 1) ÷ i], then multiplied by (1 + i) again for the start-of-month timing. Here i is the expected annual return divided by 12 and by 100 (converting a percentage to a monthly decimal rate), and n is the total number of months you invest. For example, investing $5,000 a month at an expected 12% annual return for 10 years (120 months) gives a monthly rate of 1%. Working through the formula — [(1.01^120 − 1) ÷ 0.01] × 1.01 × 5,000 — gives a future value of roughly $1,161,695. Over those 10 years you would have invested $600,000 out of your own pocket; the remaining $561,695 comes from compounding returns on money already invested. SIPs are commonly used for three goals: building a retirement corpus over 15–30 years where compounding does most of the work, saving toward a medium-term goal like a home down payment over 5–10 years, and building savings gradually instead of trying to time the market with one large investment. Because a SIP buys fund units at whatever price the market is at each month, it naturally buys more units when prices dip and fewer when they rise — a pattern called rupee-cost averaging. The return rate you enter is an assumption, not a guarantee; actual mutual fund performance depends on market conditions, and this tool is for planning estimates, not financial advice.

Frequently asked questions

What is a SIP?

A Systematic Investment Plan (SIP) is a fixed amount you invest at regular intervals — almost always monthly — into a mutual fund, instead of investing a lump sum once. Each contribution buys fund units at that month's price, so you benefit from rupee-cost averaging and from compounding as returns build on top of earlier returns.

How is SIP future value calculated?

Each monthly contribution compounds at the expected monthly rate (the annual rate divided by 12) for the months remaining until your goal date, so earlier contributions compound longer than later ones. This calculator assumes each month's investment is made at the start of the month, which is the convention most SIP calculators and fund platforms use.

Are these returns guaranteed?

No. Mutual fund and equity-linked returns are market-linked and fluctuate — the expected return rate you enter is an assumption based on historical averages or your own estimate, not a promise. Actual returns can be higher or lower, including negative in some years. Use this calculator for planning estimates only, not as financial advice.

Does this calculator support a step-up SIP (increasing contributions each year)?

No — this calculator assumes a fixed monthly amount for the entire period. If you plan to increase your contribution each year (a step-up SIP), your actual future value will be higher than shown here, since later contributions are larger even though they compound for less time. For a rough step-up estimate, rerun the calculation using your average expected monthly investment instead of your starting amount.