SIP Calculator

How much will a monthly SIP grow over time?

This free online SIP calculator estimates the future value of a fixed monthly investment. Enter the monthly amount, an expected annual return in percent and the number of years, press Calculate, and the tool shows the amount you invested, the estimated returns and the total future value. It is general information, not financial advice.

What does the SIP calculator do and why is it useful?

A systematic investment plan, usually shortened to SIP, means putting the same sum into an investment at regular intervals, most often every month. The idea is simple, but the long-term result is hard to guess in your head because returns earn further returns. A small change in the rate or the number of years can move the final figure by a large margin.

The calculator turns three inputs into three outputs:

• Amount invested: the monthly investment multiplied by the total number of months.
• Estimated returns: the future value minus the amount invested.
• Future value: the projected total at the end of the period.

It helps you compare goals, such as a down payment in five years versus a retirement fund in twenty, and it shows how starting earlier or investing a bit more each month changes the outcome. The figures are projections built on a constant return, so treat them as a planning aid and not a forecast.

How does the SIP calculator work under the hood?

The tool uses the standard future value formula for a series of equal payments made at the start of each month:

Future value = M x ((1 + i)^n - 1) / i x (1 + i)

Here M is the monthly investment, i is the monthly rate and n is the number of months. The monthly rate is the annual rate divided by 12 and then by 100, so 12 percent a year becomes i = 0.01. The number of months is the years multiplied by 12. The final factor (1 + i) reflects that each payment is made at the start of the month, so every instalment earns one extra month of growth compared with payments made at the end.

The calculator assumes the same return every month for the whole period. Real investments rise and fall, so the actual result will differ. Nothing is subtracted for fees, taxes or inflation, because the tool only applies the formula above to the numbers you type in.

The results appear only after you press the button. Changing a field does not update anything until you press Calculate again.

How do you use the SIP calculator step by step?

1. Type your monthly investment amount in the first field.
2. Enter the expected annual return as a percentage, for example 12.
3. Enter the investment period in years.
4. Press the Calculate button.
5. Read the amount invested, the estimated returns and the future value.
6. To try another scenario, edit a field and press Calculate again.

What are some worked examples?

Every figure below was computed with the formula described above and rounded to two decimals.

Example 1: 5,000 a month at 12 percent for 10 years

Input: monthly investment 5000, return 12, years 10. That is 120 months at i = 0.01. Amount invested: 600,000.00. Estimated returns: 561,695.38. Future value: 1,161,695.38.

Example 2: 10,000 a month at 12 percent for 15 years

Input: 10000, 12, 15. That is 180 months. Amount invested: 1,800,000.00. Estimated returns: 3,245,760.00. Future value: 5,045,760.00. Here the returns are larger than the money you put in.

Example 3: 2,000 a month at 8 percent for 5 years

Input: 2000, 8, 5. That is 60 months. Amount invested: 120,000.00. Estimated returns: 27,933.40. Future value: 147,933.40.

Example 4: 1,000 a month at 10 percent for 20 years

Input: 1000, 10, 20. That is 240 months. Amount invested: 240,000.00. Estimated returns: 525,696.91. Future value: 765,696.91. The returns are more than twice the amount invested.

Example 5: 25,000 a month at 10 percent for 3 years

Input: 25000, 10, 3. That is 36 months. Amount invested: 900,000.00. Estimated returns: 153,250.07. Future value: 1,053,250.07.

Monthly	Return %	Years	Invested	Future value
5,000	12	10	600,000.00	1,161,695.38
10,000	12	15	1,800,000.00	5,045,760.00
2,000	8	5	120,000.00	147,933.40
1,000	10	20	240,000.00	765,696.91
25,000	10	3	900,000.00	1,053,250.07

Example 6: how rate and time change the same 5,000 a month

Keeping the monthly amount at 5000 and the period at 10 years, a 10 percent return gives a future value of 1,032,760.10, while 14 percent gives 1,310,456.91. Keeping 12 percent but doubling the period to 20 years gives 4,995,739.60 on 1,200,000.00 invested. Doubling the time more than quadrupled the result of Example 1, which is why the length of the plan matters so much.

What are the best practices for using a SIP projection?

• Run several rates, such as a low, a middle and a high case, instead of relying on one number.
• Compare long and short periods. Example 4 shows how time does much of the work.
• Use the result to set a monthly amount for a target, then check whether that amount fits your budget.
• Write down the assumptions you used next to each result, so that when you revisit the plan a year later you can see which inputs have changed and which have not.
• Remember that the figure is not adjusted for inflation, so the buying power of the future value will be lower than the number suggests.
• Use the EMI Calculator alongside it if you also have loan repayments to plan for.
• For a single lump sum instead of monthly payments, the Compound Interest Calculator is the better fit.

What are common mistakes?

• Entering the monthly rate as the annual rate. The field expects the yearly percentage. Typing 1 instead of 12 gives a very small result.
• Entering months in the years field. Ten years should be typed as 10, not 120.
• Treating the output as a promise. The return is assumed to be constant, which real markets are not.
• Forgetting costs. Fees and taxes are not deducted by the tool.
• Expecting live updates. The numbers change only after you press Calculate.

Who uses a SIP calculator?

New investors use it to see what a small monthly habit can become. Salaried people use it to size a monthly contribution for a house, a wedding or a child's education. Students of personal finance use it to see the effect of rate and time on the same amount. Anyone comparing two plans can enter both and look at the difference side by side. People who also work with percentages often keep the Percentage Calculator nearby.

Is my data private?

Yes. The calculation runs entirely in your browser. The numbers you type are not uploaded, not stored and not sent anywhere, and the tool keeps no history. Closing or refreshing the page clears the fields.

What are the limitations?

• The return is a constant annual rate, so there are no good or bad years in the model.
• Payments are assumed to happen at the start of every month, for the whole period.
• The monthly amount stays the same. There is no option to increase it each year.
• No fees, taxes or inflation are applied.
• It estimates a number. It does not recommend any product, fund or strategy.

This page offers general information, not financial advice. Consider speaking to a licensed adviser before making investment decisions.

Frequently asked questions

What does SIP stand for?

SIP stands for systematic investment plan, a method of investing a fixed amount at regular intervals.

Which formula does the calculator use?

Future value = M x ((1 + i)^n - 1) / i x (1 + i), where i is the annual rate divided by 12 and by 100, and n is years multiplied by 12.

Are payments made at the start or end of the month?

At the start of the month. That is why the formula ends with the extra (1 + i) factor.

Why does the result not match my fund statement?

Actual returns vary from month to month, and the tool assumes one constant rate with no fees or taxes. A real statement will almost always differ.

Can I use it for a lump sum?

No, it models equal monthly payments. For a one-time amount, try the compound interest calculator.

Does it account for inflation?

No. The future value is in nominal terms, so its purchasing power will be lower than the figure appears.

Is any data sent to a server?

No. The calculation happens in your browser and nothing is uploaded or stored.

Why do results appear only after pressing a button?

The tool is built with a single Calculate button. Edit your inputs, press it, and the results refresh.

Plan with numbers, then decide for yourself

A SIP projection is a quick way to see how amount, rate and time work together. Try a few scenarios, keep the assumptions realistic, and explore more free tools for everyday calculations.