SIP Calculator – Systematic Investment Plan
Estimate the future value of a Systematic Investment Plan from a monthly amount and an assumed annual return, with an optional annual step-up and a year-by-year breakdown.
Written by the CalcBundle Research & Editorial Team · Reviewed by the Quality Review Team · Transparent formulas · results are estimates, not advice. · Updated
Estimated future value
Enter a monthly investment (or initial amount) and a period greater than zero.
What a SIP calculator does
A SIP calculator projects what a habit of investing a fixed amount every month could grow into. A Systematic Investment Plan turns investing from a one-off decision into a routine: the same sum goes in at regular intervals regardless of whether markets are up or down. That has two quiet advantages — it removes the temptation to time the market, and it averages your purchase price across cheap and expensive periods. This calculator takes your monthly amount, an assumed annual return, the duration and an optional yearly step-up, and shows both the total you will have contributed and the estimated future value, so you can see exactly how much of the result is your own money and how much is projected growth.
How SIP returns are estimated
- Monthly rate = assumed annual return ÷ 12
- Each contribution compounds for the remaining months (contributions at the start of each month, the annuity-due convention)
- An optional step-up raises the monthly amount by a set percentage every year
Because each instalment compounds only for the time left in the plan, your earliest contributions do far more work than your latest ones. That is the mathematical reason starting sooner beats contributing more later, and it is why the growth in the final years of a long SIP looks so dramatic — it is sitting on top of a decade or more of accumulated compounding.
Duration and step-ups: the two biggest levers
Of everything you can change, time and a rising contribution matter most. Extending a SIP by a few years adds disproportionately to the outcome because those extra years compound the whole balance, not just the new money. A step-up SIP — increasing the monthly amount by, say, 10% each year to track a rising salary — can lift the final value substantially while barely straining your budget in any single year, since the increases arrive gradually alongside your income.
Worked example
Investing 10,000 a month at an assumed 12% annual return for 10 years, with contributions at the start of each month, gives an estimated future value of roughly 23.2 lakh on 12 lakh actually invested. The extra 11 lakh or so is projected compounding — not a guarantee, but an illustration of how a modest, consistent habit can roughly double the money you put in over a decade. Turn on a step-up or extend the horizon and that gap widens further.
Related calculators
Compare investing steadily against deploying a single amount with the lump sum investment calculator, see the compounding mechanics up close in the compound interest calculator, and turn a target sum into a plan with the retirement calculator.
Frequently asked questions
What is a SIP?
A Systematic Investment Plan (SIP) is investing a fixed amount at regular intervals — usually monthly — rather than all at once. It builds discipline and spreads your entry across different price levels.
How are SIP returns estimated?
Each monthly contribution is compounded at a monthly rate derived from your assumed annual return, and the results are added up. This calculator contributes at the start of each month (annuity-due), the common SIP convention.
How does investment duration affect the outcome?
Time is the biggest driver. Because early contributions compound the longest, extending a SIP by even a few years can add disproportionately to the estimated future value.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly contribution by a set percentage each year, often to match salary growth. Enable it here to see how a rising contribution changes the estimate.
Is a SIP better than investing a lump sum?
Neither is universally better; they suit different situations. A SIP spreads your entry across many price levels, which lowers the risk of investing everything just before a fall and makes investing a habit rather than a decision. A lump sum, when you already have the money, keeps more capital compounding from day one and has historically come out ahead more often than not. Many investors do both: a lump sum when they have cash, and an ongoing SIP from income.
What return rate should I assume for a SIP?
Use a realistic long-run figure for the asset, not last year's headline return. Equity funds are often modelled around 10–12% over long horizons, balanced funds lower, and debt funds lower still — but these are assumptions, not promises, and actual returns are volatile. It is wise to run the calculator at a couple of rates, including a conservative one, to see how sensitive your goal is to the assumption.
Are SIP returns taxed?
Usually, yes, though the treatment depends on your jurisdiction and the type of fund. Gains are typically taxed when you redeem units, and each SIP instalment can have its own holding period for working out short- versus long-term gains. The projection here is before tax, so treat the final figure as a gross estimate and check the rules that apply to you.
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Lump Sum Investment
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Retirement
Estimate retirement savings, the corpus needed and any shortfall.
Disclaimer. This calculator provides estimates for informational purposes only. Results are based on the information you enter and the assumptions used by the calculator. Actual financial, tax, business valuation, lending, marketplace or investment outcomes may differ. Consider consulting a qualified professional for decisions involving significant amounts of money. Projected SIP returns are estimates based on the assumed return rate and are not guaranteed.