Numarly

SIP Calculator

Calculate the future value of your monthly SIP investment.

What is it?

SIP (Systematic Investment Plan) lets you invest a fixed amount in a mutual fund at regular monthly intervals instead of investing a lump sum all at once. Your money grows through the power of compounding as returns are reinvested over time.

Formula

FV = P × [(1+r)^n − 1] / r × (1+r)

  • P = Monthly investment amount
  • r = Monthly rate of return (annual rate ÷ 12 ÷ 100)
  • n = Number of months invested

Formula Explanation

Each monthly contribution compounds for a different length of time — the first installment compounds the longest, the last barely compounds at all. This formula sums the future value of every individual installment in one closed-form expression, rather than requiring a month-by-month simulation.

Example Calculation

Investing $10,000/month at 12% annual return for 15 years grows to roughly $5,050,000, from a total investment of $1,800,000.

How to Use

  1. Enter your monthly investment amount.
  2. Enter the expected annual return.
  3. Enter the investment duration in years.
  4. View the future value, total invested amount, and total returns.

Benefits

  • Builds a disciplined, automated investing habit without needing a large lumpsum.
  • Cost averaging smooths out the impact of market ups and downs over time.
  • Shows exactly how much of your final corpus is contributions vs. market growth.

Use Cases

  • Planning long-term goals like a child's education or a retirement corpus.
  • Comparing how different monthly amounts affect your final wealth.
  • Understanding the power of starting to invest early.

What Your Result Means

The future value is your total projected corpus at the end of the investment period. The split between "invested amount" and "returns" shows how much of that corpus came from your own contributions versus compounding growth — typically, returns make up a larger share the longer you stay invested.

Tips

  • Start as early as possible — extra years of compounding matter more than a larger monthly amount started later.
  • Increase your SIP amount periodically (see the Step-Up SIP calculator) as your income grows.
  • Use a conservative, realistic expected return rather than an optimistic one when planning.

Common Mistakes

  • Using an unrealistically high expected return, which overstates the projected corpus.
  • Stopping SIPs during market downturns, which defeats the purpose of cost averaging.
  • Not accounting for inflation when setting a target future value for a real-world goal.

FAQs

What is the minimum SIP amount?

Most mutual funds allow SIPs starting from as low as $500 per month, though this varies by fund house and scheme.

Can I stop or pause my SIP anytime?

Yes, SIPs are flexible — you can pause, stop, or modify the amount at any time without penalty in most funds.

Does SIP guarantee returns?

No. SIP returns depend on the market performance of the underlying mutual fund. The expected return used here is an estimate, not a guarantee.

How is SIP different from a recurring deposit?

Unlike a fixed recurring deposit, SIP returns are market-linked and can vary, offering potentially higher long-term growth with more risk.

Why does the same total investment grow more over a longer period?

Because compounding is exponential, not linear — earlier installments have more time to compound, so extending the duration increases the final value disproportionately.

Should I use nominal or inflation-adjusted returns?

This calculator uses nominal (unadjusted) returns — for real purchasing-power planning, consider using a lower, inflation-adjusted rate or pairing this with the Inflation calculator.

References

This calculator provides estimates based on the expected return you enter. Actual mutual fund returns vary with market performance.

Last updated: July 25, 2026