SIP Calculator

What is SIP?

SIP (Systematic Investment Plan) is a method of investing a fixed amount every month in mutual funds. It helps grow wealth through compounding over time.

Disclaimer : Enter numbers in your local currency — the calculation works the same regardless of currency.

Investment Breakdown
0
Total Value
0
Invested
0
Returns
Formula

FV = P × (((1+r)^n −1)/r) × (1+r)

Where:
P = Monthly Investment
r = Monthly Interest Rate
n = Total Months

For step-up SIPs, the calculator recalculates your monthly investment amount at the start of each year (increased by your chosen step-up %) and compounds each month's contribution individually.

Example

If you invest $5,000 every month for 10 years at an expected annual return of 12%:

  • Total Invested: $600,000
  • Estimated Returns: $561,695
  • Total Value: $1,161,695

Returns grow significantly due to compounding — nearly half of the final value in this example came purely from investment growth, not your own contributions.

Related Calculators
  • CAGR Calculator — check the annual growth rate of any investment, including your SIP corpus.
  • Compound Interest Calculator — see how compounding works on a lump sum, for comparison with SIP.
  • PPF Calculator — a government-backed alternative for long-term, low-risk savings.
  • FD / RD Calculator — compare fixed returns from deposits against SIP's market-linked growth.
  • Retirement Calculator — plan how your SIP investments can build toward a retirement goal.
Frequently Asked Questions

A SIP, or Systematic Investment Plan, is a method of investing a fixed amount in a mutual fund at regular intervals, usually monthly. Instead of investing a large sum at once, you invest smaller amounts consistently, which helps average out market ups and downs over time.

A step-up SIP is a variation where you increase your monthly investment amount by a fixed percentage every year, rather than keeping it constant. This lets your contributions grow alongside your income, often leading to a significantly larger corpus over the long term.

SIP returns are calculated using a compound interest formula that accounts for monthly contributions and a monthly rate of return. Each installment grows for a different length of time depending on when it was invested, and the calculator adds all of these growth amounts together.

Neither is universally better. Lump sum investing can perform better in consistently rising markets, while SIP tends to reduce risk in volatile markets through rupee-cost averaging, since you buy more units when prices are low and fewer when prices are high.

For long-term equity mutual funds, many investors use a rate between 10% and 12% per year as a planning estimate, based on historical averages. Actual returns depend on market performance and are never guaranteed.

Yes, most mutual fund SIPs can be increased, decreased, paused, or stopped at any time without penalty. A step-up SIP simply automates the process of increasing your contribution on a set schedule.