Overview
A systematic investment plan (SIP) calculator that projects the maturity value of a fixed monthly investment at an assumed annual return. It shows invested amount, estimated gains, and total value, and includes a year-by-year growth table so you can see the compounding curve rather than just the final number.
How It Works
Set the monthly investment (the default is 5,000), drag the expected-return slider between 1 and 30 percent per year, and set a duration of 1 to 40 years. Three summary tiles update instantly: total invested, estimated returns, and total value. Below them a scrollable table lists, for each year, the amount invested so far and the projected value at that point, which makes the effect of time visible year by year.
Step-by-Step Usage Guide
- Enter the amount you plan to invest every month.
- Set an expected annual return you can defend, not the highest number on the slider.
- Choose the investment duration in years.
- Scan the yearly table to see when compounding starts to dominate your own contributions.
Technical Specifications & Standards
The tool applies the standard SIP future-value formula with monthly compounding: FV = P × ((1+i)^n − 1) / i × (1+i), where P is the monthly amount, i is the monthly rate (annual rate divided by 12), and n is the number of months. The final (1+i) factor treats each installment as invested at the start of the month — the annuity-due convention used by most SIP calculators, which produces a slightly higher figure than the ordinary-annuity version. The same formula is evaluated at 12-month marks to build the yearly table. Be clear about what the return input means: it is a smooth, constant annual rate you assume, not a prediction. Real mutual fund returns arrive unevenly, their order matters, and fees and taxes are not modelled. The page itself carries a note that these are estimates and actual returns vary with markets — that caveat is accurate and worth taking seriously.
Targeted Use Cases
- Planning a long-horizon SIP and wanting to see the 10, 15, and 20-year milestones.
- Comparing what an extra 1,000 per month does to a 15-year outcome.
- Illustrating to a beginner why starting earlier matters more than investing more.
- Setting a realistic maturity target for a goal such as a down payment.
Notes & Gotchas
- Run the projection at a conservative, mid, and optimistic return to get a range, not a single number.
- Match the duration to your actual goal date; SIPs are monthly commitments over years.
- Remember the model assumes a constant return — markets do not deliver that.
- Revisit the calculation when your income or goal changes; projections age quickly.
Frequently Asked Questions
Which formula does this SIP calculator use?
The annuity-due future value formula FV = P × ((1+i)^n − 1) / i × (1+i) with monthly compounding, where i is the annual rate divided by 12. The trailing (1+i) reflects each installment being invested at the start of its month, the same convention most SIP calculators use.
Is the expected return guaranteed?
No. It is an assumption you type in. The calculator applies it evenly every month, but real market returns vary year to year and can be negative. Treat the output as an illustration of a rate applied consistently, not a forecast.
Does it account for expense ratios, taxes, or step-up SIPs?
No. The projection is a clean mathematical model: a fixed monthly amount, a constant rate, no fees, no capital gains tax, and no annual increase in the installment. Lower the rate if you want to approximate the drag of fees.
Are the amounts in a specific currency?
The figures are plain numbers formatted with your browser's locale separators, with no currency symbol attached, so you can read them in rupees, dollars, or any other unit as long as the monthly input matches.