FINBIZTOOLS
SIP Calculator
See what regular monthly investments could grow to if they earned a steady annual return. Enter the amount you invest each month, an assumed return and the number of years. You get the total invested, estimated returns and final value, plus a year-by-year table.
Private by design · Your inputs stay in this browser
Changes the currency symbol and number format only. Amounts are not converted.
How to use the SIP Calculator
- Enter the amount you plan to invest every month.
- Enter the expected annual return as a percentage, from 0% to 50%.
- Enter the duration in whole years, from 1 to 50.
- Select Calculate, then read the total invested, estimated returns and final value. Open the year-wise projection for the balance at the end of each year. Reset restores the example inputs.
Use the currency selector above the inputs to change the symbol. It changes the display only and does not convert amounts.
What is a SIP?
A systematic investment plan (SIP) invests a fixed amount at regular intervals, most often every month, instead of putting a large sum in at once. Each instalment is made at a different time, so the plan spreads your entry across many dates.
This calculator does not model any particular fund or product. It shows the arithmetic of regular deposits growing at one constant assumed rate, which is useful for comparing amounts and durations.
How the calculation works
SIP formula
Monthly rate: r = annual return % ÷ 1200
Number of deposits: n = years × 12
Future value = P × [((1 + r)ⁿ − 1) ÷ r] × (1 + r)
- P is the monthly investment.
- r is the monthly rate, the nominal annual rate divided by 12.
- n is the total number of monthly deposits.
At a 0% return the formula reduces to P × n. The code applies the same result month by month, balance = (balance + P) × (1 + r), which is why each deposit is treated as made at the start of its month.
SIP calculation example
Investing 5,000 at the start of every month for 10 years at an assumed 12% nominal annual return:
| Monthly investment | 5,000 |
|---|---|
| Expected annual return | 12% |
| Duration | 10 years |
| Total invested | 600,000 |
|---|---|
| Estimated returns | 561,695.38 |
| Final value | 1,161,695.38 |
Amounts are shown without a currency symbol because the arithmetic is identical in any currency. The currency selector only changes the symbol and number format; it never converts amounts. Enter the same figures at 0% and the final value equals the total invested, 600,000.
Assumptions and limitations
Assumptions
- The annual return is constant for the whole period and is treated as a nominal rate divided by 12, not an effective annual yield.
- Every deposit is made at the start of its month and no deposit is missed.
- Amounts are not adjusted for inflation.
Limitations and why results can differ
- Real investments rarely earn a constant rate. A weak or negative year can change the final value materially, and negative returns cannot be entered here.
- Fund charges, exit costs and taxes are not deducted.
- Another calculator may show a different figure if it assumes end-of-month deposits or an effective annual rate. That is a difference in convention, not an error in either tool.
Frequently asked questions
Does the SIP calculator guarantee the result?
No. The return you enter is a hypothetical constant assumption. Actual returns can be lower, negative or uneven from year to year.
Why might another SIP calculator show a different maturity value?
Tools differ in deposit timing and in how the annual rate is converted to a monthly rate. This calculator assumes start-of-month deposits and divides the annual rate by 12.
How is a SIP different from a lump sum?
A SIP invests the total in instalments over time, while a lump sum invests everything on day one. To compare them, run the Lumpsum Calculator with the same total amount and period.
What return should I enter?
There is no single correct figure. Try a cautious, a middle and an optimistic rate to see how sensitive the outcome is to the assumption.
Can I model a SIP that increases every year?
Yes, use the Step-Up SIP Calculator, which raises the monthly amount by a percentage each year.
Methodology
Inputs are validated before any calculation: monthly investment from 1 to 10,000,000, annual return from 0% to 50%, and duration as a whole number of years from 1 to 50. Invalid values stop the calculation with a message instead of producing a number.
The engine steps through each month, adds the deposit and then applies the monthly rate, and records the balance at the end of every twelfth month for the yearly table. Full precision is kept internally and rounding happens only when values are displayed. The calculation runs in your browser and inputs are not sent to a server. This is FinBizTools' own implementation and has not been independently audited or certified.
Last reviewed:
Disclaimer
Results are estimates based on the assumptions you enter and do not guarantee future returns. This page is for information only and is not financial, investment or tax advice. Read the full Disclaimer.
Explore this topic
This tool is part of Investing and Saving.
A common order: set a savings goal, project growth with regular or lump-sum investing, then adjust for inflation.
Free spreadsheet template
- Monthly Budget Planner (XLSX, free) — Planning a month of household income and spending in a spreadsheet.
- SIP Investment Planner (XLSX, free) — Keeping a long-term SIP plan with your own assumptions in one file.