SIP Calculator
Enter a monthly investment, an expected annual return and a period to see an illustrative future value of a systematic investment plan.
Illustrative estimate, not financial advice.
- Estimated value
- $159,406
- Amount invested
- $90,000
- Estimated gain
- $69,406
Investing $500 a month at 7% a year for 15 years would grow to about $159,406, of which $90,000 is your own money.
| Year | Invested | Estimated value |
|---|---|---|
| 1 | $6,000 | $6,232 |
| 2 | $12,000 | $12,915 |
| 3 | $18,000 | $20,082 |
| 4 | $24,000 | $27,766 |
| 5 | $30,000 | $36,005 |
| 6 | $36,000 | $44,841 |
| 7 | $42,000 | $54,314 |
| 8 | $48,000 | $64,473 |
| 9 | $54,000 | $75,367 |
| 10 | $60,000 | $87,047 |
| 11 | $66,000 | $99,572 |
| 12 | $72,000 | $113,003 |
| 13 | $78,000 | $127,404 |
| 14 | $84,000 | $142,847 |
| 15 | $90,000 | $159,406 |
Illustrative estimate, not financial advice.
Assumptions
- A constant expected return, compounded monthly. Real market returns vary and can be negative.
- Each instalment is invested at the start of its month (annuity-due).
- No taxes, fund charges or inflation are deducted.
Illustrative estimate, not financial advice. Results are shown before tax and fees unless stated.
What the sip calculator does
A SIP (systematic investment plan) invests a fixed amount every month. This calculator shows what the pot could be worth if the investments earned a steady return, compounding monthly.
How it is calculated
Future value = P x ((1 + r)^n - 1) / r x (1 + r), where P is the monthly amount, r is the monthly rate (annual rate divided by 12 and by 100) and n is the number of months. The (1 + r) factor assumes each instalment is invested at the start of the month. At a 0% return the value is P x n.
Worked example
Investing $500 a month at 7% a year for 15 years would grow to about $159,406, of which $90,000 is your own money.
Questions and answers
How does a SIP grow?
Each instalment earns the monthly return from the day it is invested, and earlier returns earn returns of their own. Over long periods the compounding part grows faster than the money you put in.
What return should I enter?
Use a cautious figure you could defend, not a past best year. Try a few values: the result is only as good as the assumption, and it is not a promise.
Is the result after tax and inflation?
No. It is a gross, nominal figure. Taxes, fees and inflation would reduce what the money can buy.
What if payments are at the end of the month?
The value would be slightly lower, by a factor of (1 + r). This page assumes the start of the month.