Input parameters
- Investment Amount
- Amount invested at each SIP interval.
- Investment Period
- Number of years contributions continue.
- Annual Returns
- Expected average annual investment return.
SIP Calculator
Project the future value of a systematic investment plan from the recurring investment amount, investment period, and expected annual return. Compare the total amount contributed with the estimated compound return generated by monthly investing.
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Result
Expected Amount: $278,657.27
Amount Invested: $120,000.00
Wealth Gain: $158,657.27
Amount Invested
Returns
| # | Duration | SIP Amount | Future Value |
|---|---|---|---|
| 1 | 5 years | $1,000.00 | $89,681.69 |
| 2 | 8 years | $1,000.00 | $185,936.57 |
| 3 | 10 years | $1,000.00 | $278,657.27 |
| 4 | 12 years | $1,000.00 | $403,584.60 |
| 5 | 15 years | $1,000.00 | $676,863.09 |
| 6 | 18 years | $1,000.00 | $1,104,255.30 |
Understanding the SIP Calculator
Review the inputs, outputs, calculation method, and formulas used by this tool.
Understanding the results
- Future value
- Projected SIP balance at the end of the period.
- Total invested
- Contribution amount multiplied by the number of deposits.
- Estimated returns
- Future value above total invested.
Calculation principle
A systematic investment plan is modeled as equal monthly contributions that compound at a monthly equivalent of the annual return.
- Read and validate the entered values.
- Convert percentages and time periods into compatible units.
- Apply the formulas below and present the calculated results.
Formulas
Monthly rate
r = Annual return / 12
SIP future value
FV = PMT × ((1 + r)^n − 1) / r × (1 + r)
Estimated return
Return = FV − PMT × n
Symbols refer to the corresponding input and result labels shown above.
How to use this calculator
Enter your figures, choose any available options, and select Calculate. You can change the inputs as often as you like to compare scenarios.
Planning note
Results are estimates for education and planning. Taxes, lender rules, fees, and investment returns can vary, so verify important decisions with a qualified professional.