Understanding sip calculator
A systematic investment plan spreads purchases over time instead of investing the full amount on one date. Start with a monthly amount that fits your budget, then compare several return assumptions. Deposit timing affects the projection because an earlier contribution has another month to grow.
Formula and calculation method
Monthly effective rate i = (1 + annual return)^(1/12) − 1. SIP future value = monthly deposit × [(1+i)^n − 1]/i, multiplied by (1+i) for beginning-of-month deposits.
All rates are illustrative, editable assumptions, not live quotations or guaranteed returns. Fees and taxes are excluded unless entered. Compare scenarios using the same contribution timing and return convention.
How to use sip calculator
- Set Monthly SIP investment. The example below uses 5000.
- Set Assumed annual effective return (%). The example below uses 10.
- Set Duration (years). The example below uses 10.
- Set Deposit timing by choosing the option that matches your calculation.
- Select Calculate to update the result. Reset restores the illustrated inputs. Copy, print or download your own result if you need a record.
Worked example
Example inputs
- Monthly SIP investment
- 5000
- Assumed annual effective return (%)
- 10
- Duration (years)
- 10
- Deposit timing
- Beginning of month
- Projected SIP value
- 1,007,287.99587067
- Total invested
- 600000
- Estimated growth
- 407,287.99587067
Factors affecting your result
All rates are illustrative, editable assumptions, not live quotations or guaranteed returns. Fees and taxes are excluded unless entered. Compare scenarios using the same contribution timing and return convention.
Changing monthly sip investment changes the scenario being evaluated. Adjust one input at a time when comparing results, keep a copy of the assumptions, and compare values using the same unit and period. A precise arithmetic result does not make an uncertain assumption precise.
Frequently asked questions
How does the sip calculator work?
Monthly effective rate i = (1 + annual return)^(1/12) − 1. SIP future value = monthly deposit × [(1+i)^n − 1]/i, multiplied by (1+i) for beginning-of-month deposits.
What inputs does SIP Calculator need?
Enter monthly sip investment, assumed annual effective return (%), duration (years), deposit timing. Read the unit labels; percentages are entered as ordinary percentages, not decimal fractions.
How should I interpret the sip calculator result?
All rates are illustrative, editable assumptions, not live quotations or guaranteed returns. Fees and taxes are excluded unless entered. Compare scenarios using the same contribution timing and return convention.
Are my sip calculator inputs uploaded?
No. The calculation runs in this browser. Favorites, recent tool names, theme and formatting preferences may be saved locally, but calculation inputs are not sent to a calculation server or stored by this website. Shared links do not include entered values.
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