Optional. Increases your monthly investment by this percentage every year.
Assumes each contribution is made at the start of the month and returns compound monthly at a constant rate. Actual market returns vary.
Show year-by-year growth
| Year | Monthly amount | Total invested | Returns | Value at year end |
|---|---|---|---|---|
| 1 | 5,000.00 | 60,000.00 | 4,046.64 | 64,046.64 |
| 2 | 5,000.00 | 120,000.00 | 16,216.00 | 136,216.00 |
| 3 | 5,000.00 | 180,000.00 | 37,538.24 | 217,538.24 |
| 4 | 5,000.00 | 240,000.00 | 69,174.17 | 309,174.17 |
| 5 | 5,000.00 | 300,000.00 | 112,431.83 | 412,431.83 |
| 6 | 5,000.00 | 360,000.00 | 168,785.15 | 528,785.15 |
| 7 | 5,000.00 | 420,000.00 | 239,894.99 | 659,894.99 |
| 8 | 5,000.00 | 480,000.00 | 327,632.83 | 807,632.83 |
| 9 | 5,000.00 | 540,000.00 | 434,107.53 | 974,107.53 |
| 10 | 5,000.00 | 600,000.00 | 561,695.38 | 1,161,695.38 |
How to use the SIP Calculator
- 1Enter the amount you plan to invest every month.
- 2Enter the expected annual rate of return as a percentage.
- 3Enter the investment period in whole years.
- 4Optionally enter an annual step-up percentage to raise your monthly amount each year.
- 5Read the estimated value, amount invested and estimated returns, and expand the year-by-year table for the detail.
What is a SIP?
A SIP, or systematic investment plan, is a way of investing a fixed amount at regular intervals, usually monthly, into a mutual fund or similar investment. The term is most common in India, but the idea is the same as a recurring deposit into an index fund, a monthly retirement contribution or any automatic savings plan.
Investing a set amount every month builds a habit, removes the need to time the market, and averages out the purchase price over time, because the same amount buys more units when prices are low and fewer when they are high. Over long periods, compounding does most of the work.
How the SIP calculator works
The calculator follows the standard SIP convention: each contribution is made at the start of the month and grows at a monthly rate i = annual return ÷ 12 ÷ 100. For a fixed monthly amount P over n months, the future value is FV = P × ((1 + i)^n − 1) ÷ i × (1 + i).
With a step-up, the monthly amount rises by the chosen percentage after every 12 months, so there is no single neat formula. Instead, the calculator simulates the plan month by month: it adds the contribution, applies one month of growth, and repeats. The same approach powers our compound interest calculator, which also handles a lump sum and different compounding frequencies.
Example: 5,000 a month for 10 years
Investing 5,000 a month for 10 years at an expected 12% a year means 120 contributions totalling 600,000. With a monthly rate of 1%, the estimated value at the end is about 1,161,695.38, so estimated returns are roughly 561,695.38.
Add a 10% annual step-up, so the monthly amount becomes 5,500 in year two, 6,050 in year three and so on, and the total invested rises to about 956,245.48 while the estimated value reaches about 1,687,163.13. Keep the original 5,000 a month but extend the period to 20 years, and the estimate grows to about 4,995,739.60 from 1,200,000 invested. Time in the market has a large effect.
Choosing a realistic expected return
The result depends heavily on the rate you enter, and real investment returns are never constant. Equity funds can rise sharply in some years and fall in others. A cautious approach is to run the calculator at several rates, for example 8%, 10% and 12%, and plan around the lower figures.
Remember that the estimate is before fees, taxes and inflation. To understand how much a percentage difference in returns or costs changes the outcome, our guide on how to calculate percentages is a useful refresher.
Frequently asked questions
Is the SIP return guaranteed?
No. The calculator assumes a fixed return every month to give an estimate. Actual returns from market-linked investments vary and can be negative over short periods.
What is a step-up SIP?
A step-up SIP increases your monthly contribution by a fixed percentage each year, often in line with salary increases. Even a modest step-up can raise the final value substantially because the larger contributions also compound.
Why does the calculator assume investments at the start of the month?
That is the usual convention for SIP calculators, and it means each contribution earns a full month of growth in the month it is made. If you invest at the end of the month instead, the result is slightly lower: divide the fixed-amount estimate by (1 + i).
How is a SIP different from a lump sum investment?
A lump sum puts all the money to work at once, while a SIP spreads it out. A lump sum can earn more if markets rise steadily, but a SIP reduces the risk of investing everything at a market peak and suits people investing from monthly income.
Can I use this for a recurring deposit or retirement plan?
Yes. Any plan with a fixed monthly contribution and a roughly constant return can be estimated this way. For other savings and loan questions, browse our full set of free finance calculators.