SIP Calculator

What this tool does

The SIP Calculator projects how a systematic investment plan grows when you invest a fixed amount every month, week, quarter or year. It uses the annuity-due formula that fund houses use for SIP illustrations, supports a yearly step-up and shows the corpus in today’s money.

A systematic investment plan (SIP) invests a fixed sum in a mutual fund at regular intervals, usually monthly. Because each instalment buys units at the prevailing price, SIPs average out market ups and downs and let small amounts compound over long periods. The question most investors ask is simple: if I invest this much every month for this many years at a reasonable return, how much will I have?

This calculator answers it with the annuity-due formula FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the instalment, i the expected annual return divided by the number of instalments per year and n the total number of instalments. The extra (1 + i) reflects that each SIP instalment is invested at the start of the period. With a step-up, the instalment rises by your chosen percentage every year and the tool simulates each period. The calculation stays in your browser.

How to use SIP Calculator

1. Pick the currency and enter the instalment amount.
2. Choose the frequency; monthly is the most common for SIPs.
3. Enter the expected annual return, for example 12% for a long-term equity fund illustration.
4. Enter the investment period in years.
5. Optionally add an annual step-up, such as 10%, to match expected salary growth.
6. Optionally enter an inflation rate to see the maturity value in today’s money, then review the chart and download the yearly table.

Tips for better results

• A 10% yearly step-up on a 15-year SIP can increase the final corpus by well over 50% compared with a flat SIP of the same starting amount.
• Use two or three return assumptions, such as 8%, 10% and 12%, to see a range instead of a single number.
• Starting five years earlier often matters more than a higher instalment, because the earliest money compounds the longest.
• Use the inflation field to turn a large nominal number into a realistic target for goals such as education or retirement.

Common use cases

• Setting a monthly SIP amount for a child’s education or a home down payment.
• Comparing a flat SIP with a step-up SIP that grows with income.
• Explaining the power of compounding to a first-time investor.
• Checking whether existing SIPs are on track for a retirement goal.

Common mistakes to avoid

• Treating the expected return as guaranteed. Equity fund returns vary widely from year to year and can be negative.
• Ignoring expense ratios and taxes; returns quoted by funds are net of expenses, but capital gains tax applies at redemption.
• Stopping SIPs during a market fall, which is when each instalment buys the most units.