liminfoSIP Calculator
Free web tool: SIP Calculator
SIP Calculator
Calculate the future value of your Systematic Investment Plan (SIP) contributions.
Total Invested
$600,000
Wealth Gained
$561,695
Future Value
$1,161,695
About SIP Calculator
The SIP Calculator computes the future value of a Systematic Investment Plan — a disciplined approach to investing a fixed amount every month into mutual funds, index funds, or other recurring investment vehicles. Enter your monthly contribution, expected annual return rate, and investment horizon in years, and the calculator instantly shows your total invested amount, projected wealth gained from compounding, and the final corpus value.
SIP (Systematic Investment Plan) leverages the power of compounding and rupee-cost averaging. By investing consistently regardless of market conditions, investors acquire more units when prices are low and fewer when prices are high, smoothing out volatility over time. The tool uses the annuity-due formula FV = P × ((1+r)^n − 1) / r × (1+r), where P is the monthly contribution, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of months. This formula assumes contributions are made at the beginning of each period.
All calculations happen locally in your browser with no server round-trips. The results panel breaks down the output into three clear figures — total amount invested (principal), wealth gained purely from returns, and the combined future value — giving you a complete picture of how your money grows over time.
Key Features
- Calculates future value using the annuity-due formula with beginning-of-period contributions
- Separates total invested principal from wealth gained through compounding
- Supports any monthly contribution amount and annual return rate
- Adjustable investment horizon from 1 month to decades
- Real-time recalculation on every input change
- Currency formatted output with USD locale for clear readability
- 100% client-side computation — no data sent to any server
- Responsive three-column result cards visible on mobile and desktop
Frequently Asked Questions
What is a SIP (Systematic Investment Plan)?
A SIP is an investment method where a fixed amount is invested at regular intervals — typically monthly — into a financial instrument such as a mutual fund or ETF. It removes the guesswork of timing the market and builds wealth gradually through disciplined saving and the power of compounding.
What formula does the SIP Calculator use?
The calculator uses the annuity-due future value formula: FV = P × ((1+r)^n − 1) / r × (1+r), where P is the monthly investment, r is the monthly interest rate (annual rate divided by 12 and divided by 100), and n is the total number of months (years × 12). The (1+r) multiplier accounts for contributions at the start of each period.
What is the difference between "Total Invested" and "Future Value"?
"Total Invested" is simply your monthly contribution multiplied by the number of months — it is the principal you put in. "Future Value" is the projected corpus after compounding. "Wealth Gained" is the difference between Future Value and Total Invested, representing the returns generated by compounding.
What annual return rate should I use?
The appropriate rate depends on your investment vehicle. Broad equity index funds have historically averaged 8–12% annually over long periods in developed markets. Debt funds and fixed-income instruments typically range from 5–8%. Use conservative estimates for planning purposes, and consider that past performance does not guarantee future returns.
Does the calculator account for inflation?
No, the calculator shows nominal future value without adjusting for inflation. To estimate real purchasing power, subtract the expected inflation rate from your expected return rate before entering it. For example, if you expect 10% returns and 4% inflation, use 6% as your real return rate.
How does compounding frequency affect SIP returns?
This calculator assumes monthly compounding, which matches the monthly contribution frequency. With monthly compounding, interest is calculated 12 times per year on the accumulated balance, which slightly outperforms annual compounding due to more frequent interest-on-interest. The formula divides the annual rate by 12 to derive the monthly rate.
Can I use this for lump-sum investment calculations?
No, this tool is specifically designed for recurring monthly contributions (SIP). For a one-time lump-sum investment, use the formula FV = PV × (1+r)^n, where PV is the present value, r is the periodic rate, and n is the number of periods.
Why does wealth gained grow so dramatically over longer periods?
This is the compounding effect: as the accumulated corpus grows, the returns generated each month also grow, and those returns generate further returns. Over 30 years, the returns on earlier contributions have compounded dozens of times, so the wealth-gained portion dominates the total. This is why starting early dramatically increases final corpus.