SIP Calculator - Systematic Investment Plan Returns Calculator
Free online SIP calculator. Calculate expected returns and future maturity value on your monthly Systematic Investment Plan investments with year-by-year growth projections.
Inputs
🔒 Local Processing| Year | Invested | Returns | TotalValue |
|---|---|---|---|
| Year 1 | $6,000 | $405 | $6,405 |
| Year 2 | $12,000 | $1,622 | $13,622 |
| Year 3 | $18,000 | $3,754 | $21,754 |
| Year 4 | $24,000 | $6,917 | $30,917 |
| Year 5 | $30,000 | $11,243 | $41,243 |
| Year 6 | $36,000 | $16,879 | $52,879 |
| Year 7 | $42,000 | $23,989 | $65,989 |
| Year 8 | $48,000 | $32,763 | $80,763 |
| Year 9 | $54,000 | $43,411 | $97,411 |
| Year 10 | $60,000 | $56,170 | $116,170 |
How to Use This Calculator
- Enter your planned regular monthly SIP investment contribution.
- Set your projected annual mutual fund return percentage.
- Select your total investment horizon in years.
- Review total invested capital, expected returns, and maturity valuation.
Formula & Mathematical Method
Where M is the future maturity value, P is the regular monthly contribution, r is the monthly interest rate (Annual Return / 12 / 100), and n is the total number of monthly payments (Years × 12).
M = P × [ ( (1 + r)^n - 1 ) / r ] × (1 + r)Explanation of Variables
| Symbol | Variable Name | Description & Role in Calculation |
|---|---|---|
| P | Monthly Investment | Periodic cash contribution deposited at regular monthly intervals. |
| i | Monthly Rate of Return | Annual percentage yield divided by 12 months. |
| n | Total Installments | Total number of monthly contributions made across the tenure. |
| M | Maturity Amount | Total future value of all accumulated SIP installments. |
Worked Calculation Examples
Long-Term Retirement Wealth
Scenario: Investing $500 monthly for 20 years at a 12% expected annual return.
Medium-Term Goal (5 Years)
Scenario: Investing $200 monthly for 5 years at an 8% expected annual return.
Interpretation of Results
A Systematic Investment Plan (SIP) utilizes rupee cost averaging and compound growth. By contributing fixed sums monthly, you acquire more units during market dips and fewer units during peaks, reducing overall investment volatility.
Total Invested
The cumulative cash contributions you deposited out-of-pocket over the tenure.
Key Context: Shows your discipline and total principal at risk.
Wealth Gained
The pure compound capital appreciation generated above your invested principal.
Key Context: In long-term tenures (10+ years), wealth gained often exceeds the principal invested.
Practical Use Cases
Mutual Fund & Index Fund Wealth Creation
Plan automated dollar-cost averaging into equity index funds for retirement or long-term growth.
Goal-Based Financial Milestones
Calculate the required monthly deposit to achieve a specific target amount for real estate or education.
Limitations & Key Assumptions
- Assumes a linear, annualized rate of return; actual equity mutual funds fluctuate with market cycles.
- Excludes fund expense ratios, exit loads, and short/long-term capital gains tax obligations.