Monthly Investment (SIP) Calculator

Estimate what a regular monthly investment — a SIP in India, or automatic investing anywhere — could be worth in the future.

Quick answer

A SIP (monthly investment) calculator estimates the future value of investing the same amount every month at an expected annual return. Investing 1,000 a month for 10 years at 12% grows to about 232,339 from 120,000 invested. Returns are not guaranteed, so treat the result as a planning estimate.

$
%
yrs
Estimated value
$382,848
Amount invested
$120,000
Estimated gains
$262,848
Investing $500 every month for 20 years at an assumed 10% annual return could grow to $382,848. You contribute $120,000 and the market contributes an estimated $262,848. Returns are not guaranteed — treat this as a planning estimate, not a promise.

Key takeaways

  • Each monthly instalment compounds for the time remaining.
  • Standard SIP maths assumes payment at the start of each month.
  • Fees and taxes reduce real returns; lower your assumed rate.
SIP — Systematic investment plan: investing a fixed amount at regular intervals, usually monthly.

How the monthly investment (sip) calculator works

A SIP (systematic investment plan) invests the same amount every month. Each instalment compounds for the months remaining, so early instalments grow the most. Standard SIP calculators assume you invest at the start of each month.

Formula

FV = PMT × ((1 + i)^n − 1) ÷ i × (1 + i) i = annual return ÷ 12, n = months (payments at the start of each month)

Standard formula. Further reading: Investor.gov (U.S. SEC) – Compound interest calculator · Investor.gov – Compound interest (glossary)

Worked example

Invest 1,000 a month for 10 years at 12%: i = 0.01, n = 120. FV = 1,000 × (1.01^120 − 1) ÷ 0.01 × 1.01 = 232,339, from 120,000 invested.

Change any number above and the plain-English explanation updates instantly with your own figures.

Frequently asked questions

What is a SIP?

A systematic investment plan: investing a fixed amount at regular intervals, usually monthly, into a mutual fund or index fund.

What return should I assume?

Long-run stock market averages have been roughly 7–10% a year before inflation, but returns vary and are never guaranteed.

Is SIP better than a lump sum?

A lump sum invested earlier often grows more on average, but monthly investing reduces timing risk and fits a regular salary.

Does this include taxes and fees?

No. Fund expense ratios and taxes reduce real returns; lower your assumed rate to account for them.

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Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated