SIP Investment Calculator

Free online SIP calculator. Enter monthly contribution, expected annual return and horizon to see total invested, projected gains and future value on an interactive growth chart.

Let compounding work for you. A Systematic Investment Plan (SIP) invests a fixed amount every month, smoothing entry price and amplifying compound returns over the long term.

Total Invested
—
Projected Gains
—
Future Value
—

Understanding SIP Investing

What Is a SIP?

A Systematic Investment Plan (SIP) contributes a fixed amount to a fund or portfolio at a fixed interval, usually monthly. It originated in the Indian mutual-fund industry and is now used worldwide for long-term wealth building, retirement, and education goals.

Core Ideas: Dollar-Cost Averaging + Compounding

  1. Dollar-Cost Averaging: Buying the same dollar amount monthly means you buy fewer units when prices are high and more when they are low, lowering the average cost per unit.
  2. Compounding: Returns are reinvested into the principal, so returns start earning returns. The growth curve becomes exponential over time.

The Formula

The future value of a monthly annuity (end-of-period) compounded monthly is:

FV = PMT × ((1 + r)^n − 1) / r

where PMT is the monthly contribution, r = annual return / 12, and n = years × 12.

Typical Use Cases

  • Index-fund SIPs on S&P 500, Nasdaq 100 or MSCI World; 6–10% nominal is a common planning assumption.
  • Forced savings for people who struggle with discretionary budgeting.
  • Goal-based investing: down payment, tuition, wedding, or retirement.

Caveats

  • The expected return is an assumption, not a promise. Past performance does not equal future results.
  • Inflation erodes purchasing power—pair this tool with our inflation calculator.
  • Stay invested for at least 5–10 years to smooth market cycles.
  • Fees, taxes and redemption charges reduce net returns.

About This Tool

We compound monthly and assume contributions at the end of each month. The chart plots cumulative capital invested against portfolio value so you can visualise how time and compounding multiply your money.

Open-Source License: This tool uses finance.js by Essam Al Joubori (MIT) and Chart.js by Chart.js contributors (MIT). Both are bundled locally in accordance with their license terms.

Frequently Asked Questions

SIP vs. lump-sum: which wins?
It depends on the market path. SIP reduces timing risk and averages your cost, which is ideal when you cannot time the market. If you invest at a market low, a lump sum wins on expected return.
If I invest $500/month for 30 years, how much can I have?
At an 8% annual return, $180,000 of principal grows to roughly $745,000, with about $565,000 coming from compounded gains.
Why monthly compounding?
SIPs deduct monthly, so monthly compounding matches reality. Differences versus daily compounding are negligible.
What do the chart areas mean?
The grey area is your cumulative principal; the amber area is portfolio value. The gap between them is your compounded profit, growing wider each year.
What if I stop contributing halfway?
Your existing balance keeps compounding, but future value slows dramatically. Consistency is the single biggest driver of SIP success.
Is SIP the same as DCA?
Effectively yes. SIP is a productised form of dollar-cost averaging—same math, different label.
Does this tool consider inflation?
Not by default. To think in today's dollars, enter your expected return minus expected inflation as the annual rate, or pair it with our inflation calculator.