SIP Investment Calculator
A Systematic Investment Plan (SIP) lets you build wealth gradually by investing a fixed amount every month. Using the compound interest formula for recurring contributions — FV = P × [((1 + r)^n − 1) / r] × (1 + r) — this calculator projects the future value of your portfolio based on your monthly contribution, expected annual return, and investment horizon.
SIPs are one of the most powerful vehicles for long-term wealth creation because they benefit from rupee-cost averaging and the exponential effect of compounding. By investing consistently, even modest monthly amounts can grow into substantial sums over a decade or more, as the gains themselves generate further gains.
How it works
FV = P × [((1 + r)^n − 1) / r] × (1 + r), where P = monthly contribution, r = annual rate ÷ 12, n = years × 12. Total Invested = P × n. Total Gains = FV − Total Invested.
Use cases
- Planning retirement savings with monthly mutual fund contributions
- Projecting college fund growth for a child over 15–18 years
- Comparing the impact of different annual return rates on the same contribution
- Estimating how long it takes to reach a specific savings goal
- Evaluating the benefit of starting investments earlier versus later