SIP Calculator
Estimate how a Systematic Investment Plan (SIP) can grow — see your projected total value, how much you’ll invest, and how much compounding adds over time.
Calculate your SIP growth
Advanced options
Optional: start with a lumpsum, raise the monthly amount every year, deduct a fund expense ratio from the assumed return, or fine-tune the term with extra months. For fixed-dollar step-ups and a side-by-side comparison, use the Step-Up SIP Calculator.
- Future value uses the annuity formula FV = M × (((1+i)ⁿ − 1) ÷ i) × (1+i) — contributions are assumed at the start of each month, with monthly compounding.
- Worked example from the guide: $500 a month at 12% for 10 years grows to $116,169.54 — $60,000 invested plus $56,169.54 in estimated gains.
- The return is an assumption you set, never a promise — markets do not pay a fixed rate. The Advanced options make the estimate more honest: a yearly step-up models rising contributions, and an expense ratio is deducted from the assumed return so the cost drag is visible.
- Investing the same amount every month buys more units when prices fall and fewer when they rise — dollar-cost averaging smooths the swings, so consistency beats timing.
- In today’s money, that $116,169.54 ten-year example is worth $86,441.05 at 3% inflation — always read a SIP result next to its inflation-adjusted value before judging whether a goal is covered.
- A lump sum invested on day one beats the same total paid in monthly instalments in a steadily rising market ($198,023.21 vs $116,169.54 for $60,000 at 12% over 10 years) — SIP wins on steadiness and affordability, not on raw maths.
- More ways to plan your money
- How to estimate your SIP returns
- How SIP growth is calculated
- Step-up, fees, lumpsum and goal mode
- What a SIP is
- Inflation-adjusted returns
- SIP vs lump sum
- Choosing your monthly amount
- Step-up in brief
- SIP in Excel, in brief
- Frequently asked questions
- Related Finance Calculators
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→How to estimate your SIP returns
Get your numbers in three simple steps.
How much you’ll invest every month.
Your expected annual return and time period.
Total value, invested amount and est. gains.
⚙️How SIP growth is calculated
Your SIP’s future value comes from the annuity formula — the same one banks and fund houses use:
M = monthly investment · i = monthly rate · n = months
Example: $500/mo at 12% for 10 years → $116,169.54 total value — that’s $60,000 invested plus $56,169.54 in est. gains. Contributions are assumed at the start of each month with monthly compounding.
The Advanced options run the same maths month by month: an initial lumpsum is added at the start and compounds for the whole term, an annual step-up raises the monthly amount every year, and an expense ratio is subtracted from the assumed return before compounding — because fund costs come out of your return whether they are shown or not.
🎚️Step-up, fees, lumpsum and goal mode
Step-up. Set an annual step-up — say 10% — and the monthly amount rises by that percentage at the start of each year, the way contributions usually grow with a salary. The $500 plan above becomes $550 a month in year two and $605 in year three; over 10 years at 12% it reaches $168,716.31 — $95,624.55 invested and $73,091.77 in estimated gains, against $116,169.54 for the flat plan. For step-ups in fixed dollar amounts and a side-by-side comparison, the dedicated Step-Up SIP Calculator goes deeper.
Expense ratio. Enter a fund’s yearly charge and the calculator subtracts it from your assumed return before compounding. At 12% assumed with a 1% expense ratio, the same $500 plan ends at $109,493.64 instead of $116,169.54 — a 1% yearly charge quietly removing $6,675.89 over the decade. The ratio is your input; this tool never looks up a real fund’s charges.
Lumpsum + SIP. Add an initial lumpsum and it is invested from day one, compounding for the full term alongside the monthly contributions; the invested total counts it from the start.
Goal mode. Switch to “Reach a goal”, type the target instead of the monthly amount, and the calculator solves the monthly investment the plan needs at your assumed return. Treat the answer as a planning figure only — it assumes the return you typed arrives smoothly every year, which real markets never do.
SIP invests a fixed amount every month, so you buy more units when prices are low and fewer when they’re high — a trick called dollar-cost averaging. That smooths out market swings and removes the impossible job of picking the perfect entry date. Consistency beats timing for most savers.
This calculator compounds monthly: each month’s contribution starts earning returns right away, and past gains earn gains of their own. The ×(1+i) term models contributions at the start of each month, so your money gets a full month of compounding on every deposit.
🌱What a SIP is, and what this calculator does
A Systematic Investment Plan (SIP) is a standing instruction to invest a fixed amount — usually every month — into a mutual fund, instead of investing one large amount once. Each instalment buys fund units at the price on that date, so you buy more units when prices fall and fewer when they rise. That automatic averaging is called dollar-cost averaging, and it is the whole point of a SIP: it removes the need to guess the right day to invest.
What this calculator does: it takes your monthly amount, an assumed annual return, and a time period, and projects the future value with monthly compounding. It also handles the three complications real plans have — an initial lump sum invested on day one, an annual step-up that raises the monthly amount each year, and an expense ratio deducted from the assumed return — and it can run backwards in goal mode, solving for the monthly amount a target needs. What it does not do: it does not predict any fund’s return, it does not include capital gains tax, and it does not look up any real fund’s charges. Every return you type is an assumption, labelled as such on the results.
How to use it well: start with a return below the most optimistic figure you have seen — the guide suggests trying 8–10% even if a fund’s past record shows more — then move the rate up and down and watch how much the final figure moves. A calculator that only ever shows one sunny number is not helping you plan; the sensitivity is the lesson.
📉Inflation-adjusted returns: the number that matters for a goal
The calculator’s headline figure is a nominal figure — the dollars you would hold at the end, with no adjustment for rising prices. For a goal that sits years away, that overstates what the money will buy. The adjustment is simple: divide the nominal future value by (1 + inflation rate) raised to the number of years. In symbols, real value = FV ÷ (1 + f)ⁿ, where f is the annual inflation rate and n is the number of years.
Worked example: $500 a month at an assumed 12% for 10 years gives a nominal $116,169.54. At 3% inflation, its value in today’s money is $116,169.54 ÷ 1.03¹⁰ = $86,441.05. The $29,728.49 gap is not a fee or a loss — it is the purchasing power that rising prices quietly remove. Over 20 years the gap is far bigger: $300 a month at 10% gives $229,709.07 nominally, but only $127,184.34 in today’s money at 3% inflation.
Practical rule: judge a goal against the inflation-adjusted figure, not the headline. If a future cost — a house deposit, a child’s education — will itself rise with inflation, then either compare nominal to nominal (the future cost at future prices) or real to real (both in today’s money). Mixing one nominal and one real figure is the most common planning error this page sees. The separate guide on SIP returns and inflation walks through the full table of real values at 2%, 3% and 5% inflation.
⚖️SIP vs lump sum: the honest comparison
Put $60,000 into a fund on day one at an assumed 12% a year, compounded monthly, and after 10 years it is $198,023.21. Pay the same $60,000 in as $500 a month over the same 10 years at the same assumed return, and it is $116,169.54. The lump sum wins by $81,853.67 — not because SIPs are bad, but because money invested earlier compounds for longer. In a market that rises steadily, the lump sum almost always wins on raw maths.
So why do most monthly savers still choose a SIP? Three reasons. First, most people do not have $60,000 sitting spare; they have $500 a month. Second, markets do not rise steadily — a lump sum invested just before a fall sits underwater for years, while a SIP keeps buying cheaper units through the fall. Third, a SIP is a habit that survives a bad month, where a lump-sum decision gets postponed forever waiting for the “right” moment. The calculator models both: enter a lump sum under Advanced options, a monthly amount, or both together, and compare the invested total and the estimated gains side by side.
A mixed approach is common and sensible: invest a lump sum you already hold, and run a SIP alongside it for the money you earn month by month. Neither choice needs to be all-or-nothing, and neither result here is a promise — both assume the same smooth return that real markets never deliver.
🎯Choosing your monthly amount: start from the goal, then check the budget
There are two honest ways to pick a monthly amount, and the best plans use both. The goal-first way inverts the future-value formula: M = Target × i ÷ (((1+i)ⁿ − 1) × (1+i)). Want $100,000 in 15 years at an assumed 10%? The monthly rate is 0.10 ÷ 12 = 0.008333 and the answer is $239.28 a month. The calculator’s goal mode does this arithmetic for you — switch to “Reach a goal” and type the target instead of the monthly amount.
The budget-first way works backwards from what you can actually spare. A common starting frame is 50/30/20: roughly 50% of take-home pay on needs, 30% on wants, 20% on saving and debt repayment, with the SIP coming out of the 20% slice. If the goal-first figure is bigger than the budget-first figure, you have three honest levers, not one: save more, allow more years, or lower the target. Raising the assumed return to make the maths fit is the lever to avoid — it changes nothing in the real world.
Starting small beats starting never. $100 a month at 12% for 20 years is $99,914.79 — and a plan you keep for 20 years beats a heroic amount abandoned after six months. Review the amount once a year, ideally when your income rises, and consider a step-up so the plan grows with your pay (see below).
📈Step-up in brief — the dedicated page owns the detail
A step-up raises your monthly SIP by a percentage at the start of each year — 10% turns $500 into $550 in year two and $605 in year three. Over 10 years at 12%, the flat $500 plan reaches $116,169.54 while the 10% step-up plan reaches $168,716.31, on $95,624.55 invested. That is the short version. Fixed-dollar step-ups, a side-by-side flat-vs-step-up comparison, and the year-by-year schedule belong to the dedicated Step-Up SIP Calculator, which is built for exactly that comparison — this page keeps only the brief version so the two pages do not compete.
📊SIP in Excel, in brief
You can reproduce this calculator’s headline figure in one Excel cell: =FV(12%/12, 120, -500, 0, 1) returns $116,169.54 for $500 a month at 12% for 10 years. The final 1 means payments at the start of each month, matching this calculator’s annuity-due assumption; use 0 instead and you get $115,019.34, the end-of-month figure. The full build — input cells, a month-by-month schedule, a step-up version, and the PMT version that solves for a goal — is in the companion guide on building a SIP calculator in Excel.
Frequently asked questions
How is my SIP maturity amount calculated?
With the future-value formula FV = M × (((1+i)ⁿ − 1) ÷ i) × (1+i), where M is your monthly investment, i is the monthly return rate and n is the number of months. Contributions are assumed at the start of each month with monthly compounding.
What is a good monthly SIP amount?
Whatever fits your budget comfortably — many investors start with $100–$500 a month and increase it over time. The calculator defaults to $500/month; try raising the amount as your income grows to see the long-term difference.
What annual return should I assume?
Long-term equity funds have historically delivered around 10–12% per year, but returns are never guaranteed. Be conservative — try 8–10% — and move the rate above to see how sensitive your outcome is.
Does this include taxes or fees?
Partly. You can enter a fund expense ratio under Advanced options — it is deducted from your assumed return before compounding, so its drag is visible in the result. Capital gains tax and platform fees are still not included. Either way, the figure is a planning estimate, not a promised outcome.
Is SIP better than investing a lump sum?
SIP removes the stress of timing the market by averaging your purchase price over time. A lump sum can win in a steadily rising market, but SIP is steadier and more realistic for most monthly savers.
Can I pause or change my SIP amount?
Most SIP plans let you pause, step up or lower your monthly amount. To model a change, just enter the new monthly figure in the calculator and compare the results side by side. The Advanced options also include an annual step-up field that raises the monthly amount automatically at the start of each year.
What does the step-up option do?
It raises your monthly investment by the percentage you enter at the start of each new year — a 10% step-up turns $500 into $550 in year two and $605 in year three. It models contributions growing with your income. For step-ups in fixed dollar amounts and a side-by-side comparison with a flat SIP, use the dedicated Step-Up SIP Calculator.
How does the expense ratio change my result?
The calculator subtracts the expense ratio from your assumed annual return before compounding, so a 12% assumption with a 1% expense ratio compounds at 11%. Over long periods that small yearly gap removes a large slice of the final value. The ratio is your own input — this tool does not look up the charges of any real fund, and no return here is guaranteed.
How do I work out the monthly amount for a target?
Switch the calculator to Reach a goal, enter the target amount, the assumed return and the time period, and it solves the monthly investment needed. Treat the answer as a planning figure: it assumes the return you typed is earned smoothly every year, which real markets never do.
Can I combine a lumpsum with my SIP?
Yes — enter it as the initial lumpsum under Advanced options. It is invested from day one and compounds for the full term alongside the monthly contributions, and the invested total includes it.
What is a SIP calculator?
A SIP calculator projects what regular monthly investments into a mutual fund could grow to, given an assumed annual return and a time period. You enter the monthly amount, the assumed return and the duration, and it returns the estimated total value, the amount invested, and the estimated gains. It is a planning estimate, not a prediction: the return you type is an assumption, and real fund returns vary year to year.
What is the inflation-adjusted value of my SIP?
It is the future value restated in today’s money: real value = FV divided by (1 + inflation rate) raised to the number of years. For example, $500 a month at 12% for 10 years gives $116,169.54 nominally, which is $86,441.05 in today’s money at 3% inflation. Judge a future goal against the inflation-adjusted figure, or compare nominal figures with a future cost at future prices — never mix one nominal and one real figure.
Is a SIP better than a lump sum?
On raw maths in a steadily rising market, no: $60,000 invested on day one at 12% for 10 years reaches $198,023.21, against $116,169.54 for the same $60,000 paid in as $500 a month. A SIP wins on affordability, on buying cheaper units during falls, and on being a habit you actually keep. You can also combine both — a lump sum under Advanced options plus a monthly SIP — and compare the results here.
How do I build a SIP calculator in Excel?
Use the FV function with payments at the start of each month: =FV(annual rate/12, years*12, -monthly amount, 0, 1). For $500 a month at 12% for 10 years that is =FV(12%/12, 120, -500, 0, 1), which returns $116,169.54. A month-by-month schedule, a step-up version and the goal-solving PMT version are all covered in the companion guide on building a SIP calculator in Excel.
What is the difference between a direct and a regular SIP plan?
The fund and the portfolio are the same; the distribution channel — and therefore the expense ratio — is what differs. A regular plan is bought through a distributor, and the fund pays the distributor a commission from the expense ratio every year. A direct plan is bought straight from the fund, with no distributor, so its expense ratio is lower by the commission. The return before expenses is identical, because both plans hold the same securities; the direct plan simply keeps more of it. The gap compounds: as an illustration, $500 a month for 20 years at an assumed 12% gross return reaches $478,284.01 at an 11.75% net return (a 0.25% expense ratio) but $432,819.02 at an 11.00% net return (a 1.00% expense ratio) — a $45,465 difference from the expense ratio alone, on identical investments. No fund is named or recommended here, and the expense ratios in the illustration are assumptions, not quotes; check the actual expense ratio of the plan you hold, and remember the calculator’s expense-ratio field models exactly this drag.
How do I calculate XIRR for a SIP in Excel?
List every cash flow with its date, then use the XIRR function. Put the dates in one column and the amounts in the next, with investments as negative numbers and the final value as a positive number, and enter =XIRR(amounts, dates): Excel solves for the annualised rate that makes the present value of the whole list zero, using the actual calendar gaps between dates. For monthly SIP instalments the dates are the 1st of each month, or the actual debit dates if they varied. The companion guide on XIRR explains what the result means, how it differs from the simple annualised return the calculator shows, and the cases where XIRR misleads — irregular dates, a single cash flow, and a result that no longer describes the money because withdrawals intervened.
Related SIP guides
Go deeper on the formula, inflation, your monthly amount, and Excel.
The formula, worked step by step.
Nominal vs real value, with tables.
Goal-first and budget-first methods.
Build it yourself with FV and PMT.
What it means, how it is calculated, and its limits.
Raise your SIP every year.
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