SIP Calculator

What Is a SIP Calculator?

A SIP calculator projects the future value of regular monthly investments — such as a mutual fund Systematic Investment Plan — assuming a constant expected annual rate of return. It uses the future value of an annuity formula to estimate how contributions compound over time.

Important Note on Returns

Investment returns are never guaranteed and can go up or down. This calculator assumes a constant annual return for simplicity — real markets fluctuate, so treat the result as an illustrative estimate, not a promise of future performance.

Worked examples

Deposit 500 at the beginning of every month for 15 years, using a hypothetical 12% nominal annual return. The model gives 252,288.00: contributions of 90,000.00 plus estimated growth of 162,288.00.

For the same deposits and period, changing the assumption to 6% gives 146,136.40. This difference shows why an assumed return is a scenario, not a reliable promise.

At 0%, 500 per month for one year produces 6,000, entirely from contributions.

Formula / Calculation Method

Future Value = P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i), where P = monthly investment, i = expected monthly return (annual rate ÷ 12 ÷ 100), and n = number of months invested.

How to Use This Tool

Enter your planned monthly investment amount.
Enter your expected annual rate of return.
Enter how many years you plan to invest.
Click Calculate Returns to see the projected future value.

Common Use Cases

Planning long-term wealth goals like retirement

Comparing different monthly investment amounts

Estimating how a change in return assumption affects your goal

Setting a savings target for a future purchase

Deposit timing and return assumptions

This is a beginning-of-month model: every deposit earns a return during the month in which it is added. End-of-month deposits would give a lower result at a positive rate. The annual percentage is divided by 12, then compounded monthly; it is a nominal annual rate, not an effective annual yield or a fund’s reported CAGR.

How to read the projection

Total invested is your monthly amount multiplied by the number of deposits. Estimated gains are the projected value minus those deposits. The period must contain whole months, and the amount stays the same throughout. This model accepts non-negative constant returns; it does not model market losses, changing returns, missed deposits, or withdrawals.

Amounts are future nominal money: inflation, taxes, fund expenses, and transaction fees are not deducted. Run more than one return assumption and check product costs separately. The currency selector changes the symbol without converting your amounts.

Frequently Asked Questions

Are the returns guaranteed?

No. The percentage is an assumption you supply. Real investments may lose value, and the order of monthly gains and losses can affect an actual SIP outcome.

Does this account for inflation?

No. The result is a future nominal amount, so it does not show how much that money could buy after inflation.

Why does another SIP calculator show a different amount?

Check whether it assumes beginning- or end-of-month deposits, how it converts an annual return to a monthly rate, and whether it includes fees. This tool uses beginning-of-month deposits and annual rate divided by 12.