SIP Calculator

A systematic investment plan puts a fixed amount into a fund every month. The appeal is not that it beats investing a lump sum — over the long run a lump sum usually wins, because the money is in the market longer — but that it removes the need to decide when to invest, and turns a large, intimidating decision into a small automatic one.

The calculation compounds each instalment for the months remaining after it is paid. Contributions are treated as arriving at the start of each month, which is when a SIP mandate actually debits, so every instalment earns one extra month of growth. Leaving that detail out understates the result by a full month's return — a small-looking difference that becomes substantial over twenty years.

What the split reveals is more interesting than the total. Over ten years at a typical equity return, roughly half the final value is money you put in and half is growth. Over twenty years the growth portion dominates completely. That widening gap is the entire argument for starting early, and it is visible here by dragging the time slider.

The number this produces is a projection, not a forecast. It assumes the same return every single year, which no market has ever delivered — real returns arrive unevenly, and equity funds lose money over plenty of individual years. Use it to compare scenarios against each other, never to plan on a specific figure.

Everything is calculated in your browser and nothing about your finances is transmitted.