SIP Calculator
Project future value of monthly SIP investments with expected annual returns (compounded monthly).
Inputs
Projected corpus
About SIP Calculator
What does this tool do?
Projects future value of a monthly SIP using an expected annual return, compounded monthly, for a given number of years.
Why does it matter?
A disciplined SIP plan compounds over time — this calculator shows how sensitive your corpus is to return assumptions and horizon.
Definition
A Systematic Investment Plan (SIP) invests a fixed amount at regular intervals; future value depends on return, time, and compounding frequency.
Assumptions
- Expected return stays constant (not realistic for markets, but useful for scenarios)
- Monthly investments occur on schedule without gaps
- Fees and taxes are not modeled here
How do you interpret your results?
Treat the output as an illustration. Stress-test with lower returns to see downside scenarios.
How can you improve your numbers?
Increase horizon
Longer time in market increases compounding — even small monthly amounts can grow large.
Review asset allocation
Return assumptions should match your mix of equity, debt, and gold.
What the SIP Calculator does
The SIP Calculator projects the future value of a monthly Systematic Investment Plan. Enter your monthly investment amount, an expected annual return, and the number of years you plan to invest, and it shows the total amount you will have invested, the estimated gains at that assumed rate, and the projected final corpus — an illustration of compounding, clearly separated into 'your money' and 'growth'.
Why the invested-versus-gains split matters: it is the clearest picture of compounding available. In the early years, the corpus is mostly your own contributions. Somewhere along the timeline, growth on the accumulated amount starts doing more work than your monthly deposits — and seeing where that crossover happens for your numbers is what turns 'investing is good' from a slogan into a plan.
The calculator is for anyone in India planning goal-based savings — a small business owner setting aside profits monthly, a family planning for education costs, or a first-time investor comparing how amount, rate, and time interact. All projections are illustrative only and are not investment advice.
How to use the SIP Calculator
Enter your monthly SIP amount
Pick a figure you can sustain in weak months, not just good ones. Consistency over years beats a large amount you abandon after six months.
Choose an expected annual return
This is an assumption, so be conservative. Run the projection at more than one rate and treat the cautious case as your planning number.
Set your investment horizon
Enter the years until you need the money. Try adding five years to see how strongly time changes the outcome — usually more than raising the monthly amount does.
Compare invested amount against estimated gains
The result splits your final corpus into contributions and growth. Use the comparison to decide whether adjusting amount, horizon, or expectations best fits your goal.
How to read your results
Gains are small relative to contributions
Typical of short horizons — compounding has not had time to work. If the goal date is fixed, a higher monthly amount matters more than chasing a higher assumed return.
The projection meets your goal only at optimistic returns
Your plan is leaning on hope. Rework it so the conservative case reaches the goal: more monthly investment, a longer horizon, or a smaller target.
Doubling the horizon far more than doubles the corpus
That non-linearity is compounding itself. It is the strongest argument for starting now with a modest amount rather than waiting until you can invest a large one.
Two scenarios differ only in return assumption
Remember which input you control. You choose amount and horizon; markets choose returns. Build plans on the inputs you control and let the return assumption stay humble.
Real-world examples
A shop owner converting profit into a retirement plan
With no employer pension, a store owner decided to route a fixed sum from monthly profits into a SIP. The calculator showed him what twenty years of discipline could build at a conservative assumed rate — and, just as usefully, that skipping the plan for five years would cost far more than the missed deposits alone.
Parents planning for a child's education
With a fifteen-year horizon to college fees, the family tested three monthly amounts against their target at a cautious return. The middle amount met the goal in the conservative case, so they set the SIP there — no heroic return assumptions required.
A young professional's first investment decision
Torn between waiting until she earned more and starting small now, she compared starting a modest SIP today against starting triple that amount in five years. The projection at the same horizon end-date favored starting small immediately — the extra years outweighed the larger deposits.
SIP Calculator — frequently asked questions
Quick answer
Is the return guaranteed?
- How does a SIP actually work
- What return assumption should I use in the calculator
- Why does starting early matter so much