SIP Calculator
A SIP, or systematic investment plan, is simply investing a fixed amount every month, automatically. This calculator shows what your monthly SIP could grow into, and how much of the final value comes from the market working for you rather than from your own contributions.
What is the SIP calculator?
A SIP calculator estimates the maturity value of a fixed monthly investment into a fund. Because you buy at every price, sometimes high and sometimes low, your average cost smooths out over time, an effect often called dollar-cost averaging. The tool assumes a steady return for illustration; real funds carry an expense ratio and may charge an exit load, which this estimate does not model.
How the SIP calculator works
M = P × ({[1 + i]^n − 1} / i) × (1 + i)- M: maturity value
- P: amount invested each month
- i: monthly return rate (annual rate ÷ 12)
- n: number of monthly instalments
Worked example. Invest $500 a month for 15 years at an assumed 12% a year. The calculator projects a maturity value near $252,000, of which $90,000 is your own contributions and about $162,000 is estimated returns. Stretch the same SIP to 25 years and the returns portion roughly quadruples, because the earliest instalments compound the longest.
How to use it
- Enter the amount you will invest each month.
- Set an expected annual return and the number of years.
- Use the inflation field to see the value in today's money.
- Watch the split between invested amount and estimated returns.
Good to know before you rely on it
- This estimate assumes a steady return. Real funds swing year to year, so treat the number as a planning guide, not a promise.
- It does not deduct the fund's expense ratio or any exit load. Subtract those to see your net outcome.
- Stopping and restarting a SIP breaks the compounding. The biggest gains come from leaving it running through the scary years.
- A step-up SIP, where you raise the amount a little each year, usually ends far higher than a flat one.
Why Thewealthora’s SIP calculator is different
- Separates what you invest from what the market adds, so the compounding is obvious.
- Shows the maturity value in today's money, not just a big future number.
- Slider or keyboard entry, and it recalculates instantly.
Pair it with the Compound Interest Calculator, the Retirement Calculator, or open live markets and our investing guides.
Sources and further reading
For the underlying concepts, see the SEC investor bulletin on dollar-cost averaging.
Frequently asked questions
What is a SIP?
A SIP is an automatic monthly investment into a fund. Instead of timing the market, you buy at every price, sometimes high and sometimes low, which averages out your cost over time.
What return should I assume for a SIP?
Equity funds have historically returned around 10 to 12 per cent a year over long periods in markets like India and the US, but past performance never guarantees the future. Try 8 per cent for a conservative view.
Can I lose money with a SIP?
Yes, over short periods. SIPs into stock funds fall when markets fall. Their advantage shows over horizons of seven years or more, where regular buying smooths out crashes.
This tool is for education, not personalised financial advice. Results are projections based on your inputs, not guarantees.
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