SIP Calculator
What a monthly investment grows to at a given return.
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Result
Ask about SIP Calculator
Questions about what this tool does, which option to pick, or what it can and cannot handle.
The question you type here is sent to an AI provider to be answered — your files and whatever you put in the tool above are not, and the assistant cannot see them. Answers are generated and can be wrong. The tool itself is not guessing: it runs deterministic code on your device.
About the SIP Calculator
A systematic investment plan puts a fixed amount into a fund every month. This projects what a series of those contributions could grow to, given an assumed annual return.
The arithmetic is a future value calculation over a series of payments: each contribution compounds for the time remaining, so the first one has the full term to grow and the last one has none. That structure is why the total contributed and the projected value diverge so dramatically over long periods — and why the divergence is almost entirely in the final years.
Look at the difference between a fifteen-year and a twenty-year projection at the same monthly amount. The extra five years of contributions are a third more money in, and the projected value typically rises by considerably more than a third, because the early contributions have had five more years to compound. Time in the market is doing more work than the amount invested, which is the single most useful thing a projection like this can show.
The assumed return is the number that deserves scepticism. Twelve per cent is a common figure for Indian equity projections and is roughly what broad indices have averaged over long periods, but the average conceals the path: real returns arrive as several bad years and several extraordinary ones, and a plan that only works if returns are smooth is not a plan. Run the projection at eight and at fifteen per cent and treat the range as the honest answer.
This is arithmetic, not advice. It shows what a rate of return would produce; it says nothing about which fund, what risk, or whether a market-linked product suits your circumstances. That conversation belongs with a registered adviser.
How to use it
- 1Enter your monthly contribution and how many years you plan to keep investing.
- 2Set an assumed annual return, then run it again a few points lower to see the pessimistic case.
- 3Compare the total contributed against the projected value — the gap is what compounding did.
- 4Extend the term by five years and see how much the projection moves. It is usually more than the extra contributions explain.
Questions
- What return should I assume?
- For Indian equity funds, twelve per cent is the conventional projection figure and broadly matches long-run index averages. Run eight per cent as well. A plan that only survives the optimistic figure is not a plan.
- Why does five extra years make such a difference?
- Because the early contributions get five more years of compounding, and compounding is most powerful at the end. The extra money invested is a small part of the increase; the extra time is most of it.
- Are the returns guaranteed?
- No. Market-linked investments can lose value, and the projection assumes a smooth rate that no real market delivers. Actual returns arrive unevenly, which matters if you need the money at a particular time.
- Is this financial advice?
- No. It is a compound growth calculation. It says nothing about which fund to choose, how much risk suits you, or whether this is the right product for your situation. Speak to a registered adviser for that.