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SIP Calculator
Estimate what a Systematic Investment Plan could grow into. Enter a monthly investment, expected return and time period, then press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
Value over time
Value Invested
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How a SIP grows your money
A Systematic Investment Plan turns investing into a habit. Instead of trying to time the market, you invest the same amount every month. When prices are low your money buys more units, and when prices are high it buys fewer, which averages out your purchase cost over time. Meanwhile every contribution keeps compounding for the rest of the plan.
This calculator models each monthly payment as an annuity due, using FV = P × [((1 + i)n - 1) / i] × (1 + i), where P is the monthly investment, i is the monthly rate and n is the total number of months. The future value is split into the money you actually put in and the estimated returns earned on top.
A quick example
Invest $500 a month at a 12% expected annual return for 15 years. You contribute $90,000 of your own money over 180 months, yet the estimated value grows to well over $240,000. The chart above shows the widening gap between the flat invested line and the curving value line, which is compounding doing the work.
Things to keep in mind
SIP returns are estimates, not promises, because real funds rise and fall with the market. Treat the expected return as a long-term average and review it periodically. For broad investor education see Investor.gov from the SEC. You can also compare a lump sum approach with our compound interest calculator.
Frequently asked questions
What is a SIP?
A Systematic Investment Plan (SIP) is a way of investing a fixed amount at regular intervals, usually every month, into a mutual fund or similar vehicle. It spreads your buying over time, builds discipline, and lets compounding work on each contribution.
How is SIP future value calculated?
This calculator treats each monthly contribution as an annuity due and uses FV = P × [((1 + i)^n - 1) / i] × (1 + i), where P is the monthly investment, i is the monthly rate (annual rate divided by 12), and n is the number of months. If the rate is zero, the future value is simply P × n.
What return rate should I assume?
The expected return is an assumption, not a guarantee. Equity mutual funds have historically averaged high single to low double digit annual returns over long periods, but actual results vary year to year. Use a conservative long-term average and revisit it as conditions change.
Does investing earlier really matter?
Yes. Because each contribution compounds for the rest of the plan, the money you invest in the early years has the most time to grow. Starting sooner, even with smaller amounts, usually beats starting later with larger amounts.
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