SIP Calculator
Calculate expected maturity wealth, total invested capital, step-up returns, and target goal investment requirements from systematic monthly investments.
Year-by-Year Wealth Growth
| Year | Monthly SIP | Total Invested | Interest Earned | Future Value |
|---|---|---|---|---|
| Yr 1 | 10,000 | 120,000 | 8,093 | 128,093 |
| Yr 2 | 10,000 | 240,000 | 24,339 | 272,432 |
| Yr 3 | 10,000 | 360,000 | 42,644 | 435,076 |
| Yr 4 | 10,000 | 480,000 | 63,272 | 618,348 |
| Yr 5 | 10,000 | 600,000 | 86,515 | 824,864 |
| Yr 6 | 10,000 | 720,000 | 112,707 | 1,057,570 |
| Yr 7 | 10,000 | 840,000 | 142,220 | 1,319,790 |
| Yr 8 | 10,000 | 960,000 | 175,476 | 1,615,266 |
| Yr 9 | 10,000 | 1,080,000 | 212,949 | 1,948,215 |
| Yr 10 | 10,000 | 1,200,000 | 255,176 | 2,323,391 |
Use any currency — results use the same currency as your inputs. Compounding assumes monthly contributions and annual returns.
Calculate expected wealth growth from systematic monthly investments (SIP), model annual step-up increments, and calculate required contributions for target financial goals.
Formula & Method
The SIP calculation uses monthly compounding for periodic contributions:
- Maturity Value:
M = P × [((1 + i)^n - 1) ÷ i] × (1 + i) - P: Monthly investment amount
- i: Periodic monthly rate (
Annual Rate ÷ 1200) - n: Total monthly contributions (
Years × 12)
Worked Example
For a monthly SIP of 10,000 at an expected annual rate of 12% for 10 years (120 months):
- Total Invested:
10,000 × 120 = 1,200,000 - Maturity Value:
≈ 2,323,391 - Estimated Returns:
2,323,391 - 1,200,000 = 1,123,391
[!NOTE] All projections are illustrative and assume a constant rate of return. Actual investment returns vary based on market conditions.
Frequently Asked Questions
What is a Systematic Investment Plan (SIP)?+
A Systematic Investment Plan (SIP) allows you to invest a fixed sum at regular monthly intervals into mutual funds or investment portfolios, benefiting from rupee-cost averaging and compounding over time.
How does the SIP Calculator work?+
The calculator uses the standard monthly compounding formula M = P × [((1 + i)^n - 1) / i] × (1 + i), where P is your monthly contribution, i is the monthly interest rate, and n is total months.
What is a Step-Up SIP?+
A Step-Up (or Top-Up) SIP allows an investor to increase their monthly investment contribution by a fixed percentage (e.g. 10% annually) or amount every year as their income grows.
How does the Goal-Based SIP mode work?+
The Goal Planner mode calculates the exact monthly investment required today to achieve a specific target corpus (e.g., $1,000,000) within a chosen investment timeframe and expected return rate.
How does inflation impact SIP maturity returns?+
Inflation erodes the future purchasing power of money. To evaluate the real future purchasing power of your SIP maturity amount, compare your expected return rate against prevailing annual inflation rates.
Are SIP returns guaranteed?+
No. SIP calculations provide estimated projections based on an assumed annual return rate. Actual market returns fluctuate over time.