SIP Calculator
Work out what a monthly investment grows to, and what you actually put in.
About this sip calculator
A SIP — systematic investment plan — is simply investing a fixed amount every month rather than a lump sum. This calculator shows what that becomes at a given rate of return, and separates the total into what you contributed and what the returns added.
The separation is the useful part. Over a long enough period the returns overtake the contributions entirely, and seeing the year that happens is more persuasive than any amount of explanation.
How to use it
- Enter your monthly investment amount.
- Set an expected annual return and the number of years.
- Optionally add a step-up — an annual percentage increase in your monthly amount.
- Read the maturity value, and expand the yearly table to see when returns overtake contributions.
SIP Calculator — FAQ
What formula does a SIP calculator use?
Future value of a series: M = P × ((1 + i)^n − 1) ÷ i × (1 + i), where i is the monthly rate and n the number of instalments.
What return rate should I assume?
That is your call and nobody can tell you what markets will do. People often model equity funds somewhere in the 10 to 12% range and debt funds far lower, but past returns are not a promise.
What is a step-up SIP?
Increasing your monthly contribution by a set percentage each year, usually to track a rising salary. Even 10% a year makes a large difference over a long horizon.
Does this account for tax or inflation?
No. The figures are nominal and before any tax on gains. Your real, after-tax outcome will be lower.
Is this financial advice?
No. It is a compound-interest calculator. Talk to a qualified adviser before making investment decisions.