SIP Calculator
A Systematic Investment Plan (SIP) invests a fixed amount every month into funds. Enter your monthly SIP, an expected return and your tenure to estimate the maturity value — and how much of it is your own money versus growth.
▸ Show year-by-year breakdown
| Period | Invested | Growth | Value |
|---|
Estimates are for illustration and education only — not financial advice. Returns are assumed constant and are not guaranteed; real markets fluctuate.
How a SIP builds wealth
A SIP automates investing: a fixed sum moves from your account into a fund on the same day each month. Because it's automatic and consistent, it turns investing into a habit and takes market-timing decisions off your plate entirely.
Rupee-cost (or dollar-cost) averaging
Each monthly instalment buys more units when prices are low and fewer when they're high, averaging out your purchase cost over the tenure. Combined with compounding, long SIPs can grow the invested amount into a much larger maturity value.
Time is the biggest lever
Notice how stretching the tenure a few more years dramatically raises the maturity value — the later years, where compounding acts on a large base, do most of the heavy lifting. Starting early beats investing more later.
This estimate assumes a constant return; actual fund returns vary. To model a lump-sum investment instead, use the compound interest calculator.
The SIP maturity formula
A SIP is a monthly annuity: each instalment compounds from the month it's invested until maturity. The standard formula sums them all into a single future value.
What makes a SIP grow
A SIP rewards patience and consistency more than cleverness. These are the levers that genuinely move the maturity value.
Works in your favour grows it
- Starting early — years in the market beat larger amounts later
- Never skipping instalments, especially in down markets
- Stepping up the SIP amount as your income rises
- Choosing funds with low expense ratios
Works against you shrinks it
- Pausing or stopping when markets fall
- Withdrawing early and breaking the compounding chain
- Chasing last year's top fund and churning
- Assuming unrealistically high returns when planning
The step-up idea. Increasing your SIP by even 10% a year, in line with pay rises, can dramatically lift the maturity value with barely noticeable effort. The amount you can invest almost always grows over a career — let your SIP grow with it.
Returns are assumed, not promised. Equity funds are often modelled with a higher long-run average than debt funds, but markets don't deliver a smooth line. Use a conservative figure and treat the result as a planning estimate, not a guarantee.
The power of starting early
A $500 monthly SIP at a 12% assumed return, by how long you stay invested. Each extra decade multiplies the maturity value far more than the last.
| Tenure | Total invested | Est. returns | Maturity value |
|---|---|---|---|
| 10 years | $60,000 | ~$56,000 | ~$116,000 |
| 15 years | $90,000 | ~$162,000 | ~$252,000 |
| 20 years | $120,000 | ~$375,000 | ~$495,000 |
| 25 years | $150,000 | ~$800,000 | ~$950,000 |
Illustrative figures at a constant 12% annual return, compounded monthly and rounded. Actual mutual-fund returns fluctuate and are not guaranteed; the pattern — accelerating growth with time — is the takeaway.