Is the projected return guaranteed?

No, the expected return rate is an assumption, not a guarantee. Market-linked investments carry risk and actual returns will vary.

What return rate should I use?

A common approach is the long-term historical average of your chosen fund or index, though this varies and should be researched rather than assumed.

Does this account for inflation or taxes?

No, the maturity value is shown in nominal future dollars and does not subtract taxes or adjust for inflation.

SIP Calculator

Project the future value of a monthly SIP or recurring investment

Monthly Investment ($)

Expected Annual Return (%)

Investment Period (Years)

yrs

What is the SIP Calculator?

A SIP (Systematic Investment Plan) is a way of investing a fixed amount into a mutual fund every month rather than as one lump sum — the closest US/UK equivalent concept is a recurring or automatic monthly investment plan into an index fund or brokerage account. This calculator projects the future maturity value of that kind of regular monthly investing, based on your monthly contribution, expected annual return rate, and investment period.

How to Use the SIP Calculator

Enter your monthly investment amount.
Enter the expected annual return rate — a realistic long-term estimate for the fund or index you're investing in.
Enter the investment period in years.
Read the result — the projected maturity amount, total money invested, and wealth gained through compounding.

SIP Future Value Formula

Maturity Value = P × [((1 + r)ⁿ − 1) ÷ r] × (1 + r)
P = monthly investment, r = expected monthly rate of return (annual rate ÷ 12), n = number of monthly investments (years × 12)

Example Calculation

Investing $200 every month for 10 years at an expected 10% annual return grows to a projected maturity value of approximately $40,969. Total money invested over that period is $24,000, meaning roughly $16,969 comes purely from investment growth — this is the power of compounding on a regular monthly investment.

Why Regular Investing Grows Faster Than You'd Expect

Because each month's contribution starts earning returns immediately, and those returns themselves earn further returns, a longer time horizon disproportionately increases your final maturity value. Starting early — even with a smaller monthly amount — often outperforms starting later with a larger amount, purely due to extra years of compounding.

Frequently Asked Questions

No. The expected return rate you enter is an assumption, not a guarantee. Mutual funds and index funds are market-linked investments, so actual returns will vary year to year and can be lower — or higher — than the rate used here.

A common approach is to use the long-term historical average of the fund or index you're investing in (many broad stock market index funds have historically averaged roughly 7–10% annually before inflation), but always research your specific fund rather than assuming a fixed rate.

No, the maturity value shown is in nominal (future) dollars and doesn't subtract taxes on gains or adjust for inflation. Use the Inflation Calculator alongside this one to estimate real purchasing power.

This tool provides estimates for planning purposes only and is not investment advice.