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SIP Calculator

Estimate systematic investment plan future value, total investment, estimated returns, and yearly growth summary.

Optional placeholder for future step-up SIP support. It is validated but not included in this release calculation.

Status: initial

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Investment estimate

Introduction

A SIP calculator estimates the future value of regular monthly investments using an assumed annual return and investment period.

What is SIP?

A systematic investment plan, or SIP, is a way to invest a fixed amount at regular intervals. In this calculator, the interval is monthly.

SIP formula

The SIP future value formula estimates how monthly investments may grow when each contribution compounds at an assumed monthly return rate.

Variables explained

Monthly investment

The amount invested every month.

Expected annual return

The assumed annual return used for estimation. It is not guaranteed.

Time period

The investment duration entered in years or months.

Monthly return

The annual return divided by 12 for formula use.

Future value

The estimated maturity value at the end of the period.

Estimated returns

The estimated difference between future value and invested amount.

Investment disclaimer

This calculator provides educational estimates only. It is not investment advice, financial advice, or a recommendation to buy or sell any product. Market-linked returns are not guaranteed.

Formula guide

Future value of SIP

FV = P x [((1 + r)^n - 1) / r] x (1 + r)

  • P is monthly investment.
  • r is monthly return rate.
  • n is number of months.

This assumes each monthly investment compounds at the same expected return.

Monthly return

Monthly Return = Expected Annual Return / 12

  • Annual return is entered as a percentage.

The monthly rate is used in the SIP future value formula.

Zero return

FV = Monthly Investment x Number of Months

  • Used when expected annual return is 0%.

Without assumed growth, future value equals the total invested amount.

Estimated returns

Estimated Returns = Future Value - Total Investment

  • Total investment is monthly investment multiplied by months.

Estimated returns are the assumed growth above contributed capital.

Worked examples

Monthly SIP example

  1. Monthly investment is 10,000.
  2. Expected annual return is 12%.
  3. Investment period is 10 years.
  4. Estimated future value is about 23.23 lakh.

Zero return example

  1. Monthly investment is 5,000.
  2. Expected annual return is 0%.
  3. Time period is 24 months.
  4. Future value equals total investment of 1,20,000.

Compounding effect

  1. Each monthly contribution is added to the investment.
  2. Earlier contributions have more time to compound.
  3. Longer periods can increase estimated growth.
  4. Actual market returns can be higher or lower.

SIP vs lump sum

  1. SIP spreads investment across months.
  2. Lump sum invests an amount upfront.
  3. Both depend on market performance and timing.
  4. This calculator models monthly SIP only.

Common SIP mistakes

Treating expected return as guaranteed

Market-linked investments do not provide guaranteed returns unless product terms explicitly say so.

Ignoring fees and taxes

Expense ratios, exit loads, taxes, and platform costs can reduce realized returns.

Using unrealistic return assumptions

A high expected return can make future value look much larger than realistic outcomes.

Confusing SIP with a product

SIP is an investment method, not a separate investment product.

Ignoring risk and time horizon

Investment choices should consider goals, risk tolerance, liquidity, and time horizon.

FAQs

What does a SIP calculator estimate?
It estimates total investment, future value, and estimated returns for monthly investments.
What formula does this SIP calculator use?
It uses FV = P x [((1 + r)^n - 1) / r] x (1 + r), with r as monthly return.
Are SIP returns guaranteed?
No. SIP returns depend on the underlying investment and market performance.
What is monthly return rate?
It is the expected annual return divided by 12.
What is total investment?
It is monthly investment multiplied by the number of months.
What are estimated returns?
Estimated returns are future value minus total investment.
Does this include fees or taxes?
No. Fees, taxes, and product-specific costs are not included.
Does this support step-up SIP?
This release includes a validated step-up placeholder, but the calculation uses fixed monthly investment.
Can I enter time in months?
Yes. Choose months as the time unit.
What happens at 0% return?
Future value equals monthly investment multiplied by the number of months.
What is the maximum period supported?
The calculator supports investment periods up to 60 years.
Is SIP better than lump sum?
Neither is always better. SIP spreads investments over time, while lump sum invests upfront.
Is this investment advice?
No. It is an educational calculator and not financial or investment advice.
Can actual returns be negative?
Yes. Market-linked investments can rise or fall, and actual results can be below invested amount.
Which related calculator should I use?
Use the Compound Interest Calculator for one-time investments and broader compounding scenarios.

References

Related calculators

Last updated and version history

Last updated: 2026-07-04

  • 1.0.0 (2026-07-04): Initial production release with fixed monthly SIP estimate, yearly growth summary, and investment disclaimer.