Toolstia / SIP calculator
SIP calculator
A systematic investment plan (SIP) puts a fixed amount into an investment every month. Enter the monthly amount, the return you expect and the number of years to see the estimated value, the total you invested and the estimated gain.
An estimate that assumes the same return every year, with each payment invested at the start of the month and the return compounded monthly. Real returns vary, can be negative, and are never guaranteed. This is not financial advice.
How it works
- Enter your monthly investment.
- Enter the expected yearly return and the number of years.
- Read the estimated value, total invested and gain.
The formula
Value = P x ((1 + i)^n - 1) / i x (1 + i), where P is the monthly amount, i is the monthly return (yearly return divided by 12 and 100) and n is the number of months. Each payment is treated as invested at the start of the month.
An example
Investing 5,000 a month for 10 years at 12% a year gives about 1,161,695. You invested 600,000, so the estimated gain is about 561,695.
Why time matters
Most of the growth comes in the later years, because returns are earned on earlier returns. Starting earlier, even with a smaller amount, often beats starting later with more.
Real life differs
Markets do not give a steady return. Real returns go up and down and can be negative, and fees and tax reduce what you keep. Treat the result as an illustration, not a promise.
Questions
What does SIP stand for?
Systematic investment plan: investing a fixed amount at regular intervals.
What return should I enter?
There is no guaranteed figure. Use a cautious number and try several to see the range.
Is it in any currency?
Yes. The result uses the same unit as the amount you enter.
Is this financial advice?
No. It is a calculator. Speak to a qualified adviser about your own situation.