SIP Calculator
A systematic investment plan (SIP) is a way to invest a fixed amount at regular intervals, usually monthly, into a mutual fund or similar vehicle. This SIP calculator estimates what those contributions could grow into by the end of your investment period, along with how much of the final figure is your own money versus estimated returns. It assumes each contribution is made at the start of the period and compounds monthly at a constant expected return. Real returns vary year to year, so treat the maturity value as a planning estimate rather than a promise.
Calculate
Default result: $1,161,695.38
SIP Calculator · Materials
calculators.dev
Maturity value
5000 × 12 × 10
Shopping list
- Total invested
- $600,000.00
- Estimated returns
- $561,695.38
Est. total
$1,161,695.38
Estimate — confirm w/ supplier · calculators.dev
This calculator provides estimates for general informational purposes only and is not financial, investment, tax, or legal advice. Results are projections based on the figures you enter and the stated assumptions, and actual outcomes will differ. Consult a qualified financial professional before making borrowing, saving, or investment decisions.
Reviewed by the calculators.dev team · Last updated 2026-06-24
Formula reviewed against Groww SIP Calculator — independent maturity-value reference (annuity-due SIP)
How to calculate
Enter your monthly investment, the annual return you expect, and how many years you plan to invest. The calculator converts the annual return to a monthly rate, counts the number of monthly contributions, and grows each one — made at the start of its month — to the end of the horizon. For 5,000 a month at 12% over 10 years, that is 120 begin-of-period contributions maturing to about 1,161,695. The total invested line shows your contributions; the estimated returns line is the rest.
Maturity = PMT × [((1 + i)^n − 1) / i] × (1 + i), where PMT is the monthly contribution, i is the monthly rate (annual return ÷ 12), and n is the number of months (years × 12). The trailing (1 + i) factor is the annuity-due adjustment: each contribution is made at the start of the period, so it earns one extra period of growth compared with an end-of-period plan. Total invested is PMT × n; estimated returns are the maturity value minus the total invested.
Example calculation
Investing 5,000 a month for 10 years at an expected 12% annual return (1% a month) means 120 contributions, each made at the start of the month. Because every contribution earns a full month of growth, the plan matures to about 1,161,695 — against a total of 600,000 actually invested, roughly 561,695 of that is estimated returns.
- maturityValue
- 1,161,695.38
- totalInvested
- 600,000.00
- estimatedReturns
- 561,695.38
Assumptions
- Contributions are made at the start of each period (begin-of-period / annuity-due), compounded monthly.
- The expected return is constant for the whole horizon; real market returns vary year to year and can be negative.
- Returns are gross — taxes, fund fees, and exit loads are not modelled and would reduce the maturity value.
Common mistakes
- Treating the expected return as guaranteed. It is an assumption; a lower realised return produces a lower maturity value.
- Entering the return as a decimal (0.12) instead of a percentage (12), which drastically understates the result.
- Ignoring fees and taxes, which reduce the net amount you actually receive.
Frequently asked questions
What is a SIP?
A systematic investment plan is a fixed amount invested at regular intervals, typically monthly, into a fund. It spreads your investment over time rather than committing a lump sum at once.
Why does this assume contributions at the start of the month?
SIPs are conventionally modelled as begin-of-period (annuity-due) investments: the contribution is invested at the start of the period and earns a full period of growth. That is why the maturity value is slightly higher than an end-of-period plan with the same inputs.
Is the maturity value guaranteed?
No. It is an estimate based on a constant expected return. Actual market returns fluctuate and can be negative in some years, so the realised value may be higher or lower.
How is a SIP different from a lump-sum investment?
A SIP spreads investment across many months, which averages your purchase price over time. A lump sum invests everything at once. The compound interest calculator covers the lump-sum case.