SIP Investment Calculator
Calculate wealth accumulated through Systematic Investment Plan
About the SIP Investment Calculator
A Systematic Investment Plan (SIP) lets you invest a fixed amount regularly — typically every month — into a mutual fund or investment instrument, harnessing the power of compounding and rupee cost averaging over time. This calculator projects the total wealth you can accumulate based on your monthly contribution, expected annual return, and investment horizon.
How to Use
- Drag sliders or enter your monthly investment amount.
- Set the expected annual return (e.g. 10–14% for equity funds).
- Enter the total investment duration in years.
- Optionally add a step-up rate, then click Calculate.
Formula Used
FV = future value, P = monthly instalment, r = monthly rate (annual rate ÷ 12), n = total number of months.
Frequently Asked Questions
How much do I need to invest monthly to reach my target?
Use the calculator's year-by-year breakdown to see when you cross your target. As a rough rule, $200/month at 8% for 30 years grows to ~$300,000; $500/month at 10% for 25 years grows to ~$650,000. Higher contributions and longer horizons are far more powerful than chasing returns.
Is SIP / Dollar-Cost Averaging better than lump-sum investing?
Investing the same amount each month — known as Dollar-Cost Averaging (DCA) globally and SIP in India — reduces timing risk. You buy more units when prices fall and fewer when they rise, smoothing your average cost. Lump-sum tends to win mathematically over long periods, but SIPs are more disciplined and behaviourally easier to stick with.
What return rate should I assume?
Long-term historical averages: global equity funds ~7–10% p.a. (US S&P 500 ~10%, Indian equities 10–14%, developed-market index funds ~7–8%). Hybrid/balanced funds: 6–9%. Bond/debt funds: 3–6%. Always use a conservative figure for planning — past returns don't guarantee future performance.
What is a step-up SIP?
A step-up (or top-up) increases your monthly contribution by a fixed percentage each year — typically 5–10% to match salary growth. Even a 5% annual step-up can boost your final corpus by 30–50% over 20+ years.
Important Note
SIP returns are subject to market risks; mutual fund investments do not guarantee a fixed return. Past performance of any fund is not indicative of future results.