What Is a SIP Calculator?
A SIP calculator projects the future value of regular monthly investments — such as a mutual fund Systematic Investment Plan — assuming a constant expected annual rate of return. It uses the future value of an annuity formula to estimate how contributions compound over time.
Important Note on Returns
Investment returns are never guaranteed and can go up or down. This calculator assumes a constant annual return for simplicity — real markets fluctuate, so treat the result as an illustrative estimate, not a promise of future performance.
Example Calculation
Investing $500 per month for 15 years at an expected 12% annual return could grow to approximately $252,288, of which $90,000 is your own contribution and roughly $162,288 is estimated growth.
Formula / Calculation Method
Future Value = P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i), where P = monthly investment, i = expected monthly return (annual rate ÷ 12 ÷ 100), and n = number of months invested.
How to Use This Tool
- Enter your planned monthly investment amount.
- Enter your expected annual rate of return.
- Enter how many years you plan to invest.
- Click Calculate Returns to see the projected future value.
Common Use Cases
Planning long-term wealth goals like retirement
Comparing different monthly investment amounts
Estimating how a change in return assumption affects your goal
Setting a savings target for a future purchase