SIP Calculator - Monthly Investment Growth with Compound Returns
Calculate your SIP returns
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A projection with a constant return, before taxes and fees. Real returns vary from year to year; past performance does not guarantee future results.
How a SIP grows
A systematic investment plan — SIP in India, dollar-cost averaging elsewhere — puts the same amount into a fund every month regardless of price. The appeal is twofold: you buy more units when prices are low and fewer when they are high, and every contribution starts compounding from the day it goes in. This calculator shows what that compounding adds up to.
Steps
- 1 Enter the monthly amount, the annual return you expect and the number of years. The three result figures update instantly.
- 2 Optionally add a lump sum invested on day one and a yearly step-up — the percentage by which you raise the monthly amount each year.
- 3 Read the chart and the year-by-year table to see how much of the final value is your money and how much is return.
The formula
With a monthly rate i = annual rate ÷ 12 and n monthly contributions of P, the future value of a SIP paid at the start of each month is P × [(1 + i)ⁿ − 1] ÷ i × (1 + i). Paid at the end of the month, the final (1 + i) factor is dropped. The calculator runs the month-by-month loop rather than the closed formula so that a step-up and a lump sum can be included exactly.
What return should I assume?
Use a long-run average for the asset class, not last year's figure. Broad equity index funds have historically returned around 7–10% a year in nominal terms over decades, bond funds less, with wide swings in between. Try a conservative and an optimistic number and plan for the gap; the tool is a projection, not a forecast.
Why a step-up matters
Raising the monthly amount by 10% a year — roughly in line with salary growth — more than doubles the final value of a 20-year plan compared with a flat contribution, because the larger payments in later years are many and the early habit is already in place. Enter the step-up percentage to see the effect on your own numbers.
Lump sum versus monthly
Money invested today has longer to compound than money invested next year, so a lump sum you already have will, on average, beat drip-feeding it over months. SIP is the right tool for income you receive monthly, and for people who would otherwise wait for the perfect moment. The lump-sum field lets you combine both.