SIP Return Calculator
Project the value of a monthly systematic investment plan and see how much of it is your own money versus growth.
Recent
Formula
How the calculation works
A SIP invests a fixed amount every month, so each instalment has its own time in the market and compounds for a different number of months.
The calculator converts the annual return into a monthly rate and grows the series of instalments using the future value of an annuity formula.
Subtracting the total invested from that future value splits the result into your own contributions and the growth earned on them.
Common mistakes
- Assuming the return arrives in a straight line, when real markets rise and fall and the projected figure is only an average path.
- Stopping the SIP during a market fall, which gives up exactly the low priced instalments that do the most work in the final value.
When to use it
- Use it to set a monthly amount that realistically reaches a long term goal such as retirement or a child's education.
- Do not treat the projection as a promise for a short horizon, because a few years is too little for the average to smooth out market swings.
Worked example
A monthly SIP of 7500 at an 11.5 percent annual return for 12 years invests 1080000 and grows to about 2329927.78, a gain of roughly 1249927.78.
Common questions
Why does the estimated value exceed the money I put in?
Each instalment compounds for the months that follow it, so later growth is added on top of earlier growth across the whole period.
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