SIP Calculator

A systematic investment plan, or SIP, invests a fixed amount in a mutual fund at regular intervals, usually monthly, straight from your bank account. Each instalment buys units at that day's price, so you buy more units when prices are low and fewer when they're high, and you don't have to time the market.

This calculator projects what a monthly SIP could be worth after a number of years at a steady expected return. It separates what you invested from what the investment earned and shows the value at the end of every year, so you can see compounding speed up over time. It works in rupees or any other currency.

The calculator follows the convention fund houses use: each instalment is invested at the start of the month and grows at the yearly return ÷ 12 per month. That gives the future value M = P × ((1 + i)^n − 1) ÷ i × (1 + i), with P the instalment, i the monthly rate and n the number of months.

The striking part is the last few years. Because returns compound on earlier returns, the growth in a 20-year SIP's final five years is larger than in its first fifteen, which is why starting early and not stopping during a market fall matter so much.