SIP Calculator

What is sip calculator?

A systematic investment plan, or SIP, means investing a fixed amount every month. It spreads purchases over time and builds a habit.

This calculator estimates the future value of regular monthly investments with compound growth. It is a planning tool and not a promise of returns.

How to use the sip calculator

1. Enter your monthly amount.
2. Enter the yearly return you expect and the number of years.
3. Read the future value and the gain.

How the sip calculator works

Future value equals the monthly amount times ((1 + i) to the power n minus 1) divided by i, times (1 + i), where i is the monthly rate (yearly rate divided by 12) and n is the number of months. Payments are assumed at the start of each month.

Worked example

Common uses of the sip calculator

• Planning for retirement or education.
• Comparing monthly amounts.
• Setting a savings goal.
• Showing the effect of time.
• Checking a fund projection.

Tips and common mistakes

Use a lower return for planning to stay cautious.

Increase your amount each year to reach goals faster.

Background: what to know before you rely on it

The strength of regular investing is time. Because gains are reinvested, the later years contribute much more than the early ones, which is why starting early beats investing more later. A steady plan also removes the need to guess the best day to buy, since you buy at many prices. Real returns vary and can be negative in some years, so treat any projection as a range. Check the costs and risks of the product you use, and for Shariah concerns confirm that it suits your own requirements.

Private, free and fast

This tool runs entirely in your browser. What you type or choose is not uploaded to a server and is not saved after you close the page, which keeps it fast and private. It is free to use as often as you like. See more in all finance calculators, or browse the full list of tools.

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Results are for information and education. For legal, financial, medical or security decisions, check with a qualified professional. Estimates only. Confirm with your lender or accountant.