A Systematic Investment Plan is a way of investing a fixed amount at a fixed interval — typically monthly — into a mutual fund or index fund. SIPs smooth out market timing and leverage rupee/dollar-cost averaging.

Why is the result much bigger than my contributions?

Compound returns. Money you invested in year 1 has 30 years to grow; money in year 30 has only one. The 'returns' bar dwarfs the 'invested' bar at long horizons because the early dollars do the heaviest lifting.

What return rate is realistic?

Indian large-cap mutual funds have averaged ~12% over long horizons; US S&P 500 around 10% nominal. Don't extrapolate the last 3 years — pick a humble number (8–12%) so you're not disappointed.

Should I increase my SIP each year?

Yes — even small step-ups (5–10% per year matched to your raises) significantly improve outcomes because the additional amounts also compound. This calculator models a flat SIP; for step-ups, mentally bump the monthly amount.

Is this calculator accurate for crypto DCA?

The math works for any monthly contribution that compounds at a known rate. But crypto returns are far more volatile, so any single rate badly underestimates the range of outcomes. Treat the result as one scenario, not a prediction.

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Free SIP Calculator

Last updated: May 12, 2026

Pick a monthly amount, an expected return, and a horizon. We compound month-by-month and show how invested + returns sum to your final corpus.

Monthly investment

$50$50K

Expected annual return

1%30%

Investment period

1 yr40 yr

Total Invested

$120,000.00

500/mo × 240 months

Returns

$379,573.96

Final Corpus

$499,573.96

Year-by-year buildup

Stacked: dark = your contributions, green = compound returns.

What is a SIP?

A SIP (Systematic Investment Plan) is a way to invest the same fixed amount on a regular schedule, usually monthly. Most people use SIPs to buy mutual fund or ETF units. Each month, your contribution buys whatever units the current price allows. Over time, this averages out your entry price (rupee-cost averaging or dollar-cost averaging, depending on where you live).

The appeal is consistency. You don't need to time the market, you don't need to invest a lump sum upfront, and small amounts compound into real wealth over decades. A $500 monthly SIP at 12% per year grows to roughly $5 million over 35 years. The math is unforgiving in both directions, so the assumed rate matters a lot.

How to calculate SIP returns manually

SIP returns use the future-value-of-annuity formula. With monthly contribution P, monthly rate r (annual rate ÷ 12, as a decimal), and tenure n months:

FV = P × [((1 + r)ⁿ − 1) ÷ r] × (1 + r)

Worked example: $500 invested monthly at 12% annual return for 20 years. Monthly rate r = 0.12 ÷ 12 = 0.01. Tenure n = 240. FV = 500 × [((1.01)²⁴⁰ − 1) ÷ 0.01] × 1.01 ≈ $498,000. You contributed $120,000 over those 20 years. The remaining $378,000 is compound growth on contributions that arrived at different times. Move the sliders above to see how rate or horizon changes the final number.

Real-world examples

Starter SIP

$200/mo · 10% · 25 years

≈ $266,000 · invested $60,000

Small monthly contributions started young. The vast majority of the final balance is compound growth, not the money you put in.

Mid-career SIP

$1,000/mo · 12% · 20 years

≈ $996,000 · invested $240,000

A SIP started at 40 still reaches a million by 60 at equity-fund returns. Roughly $750,000 of that is growth.

Step-up SIP

$500/mo + 10%/yr · 12% · 25 years

≈ $1.96M · invested $590,000

Increase your monthly amount by 10% each year. The compounding plus rising contributions roughly triples the unstepped result.

Common mistakes when projecting SIP returns

Assuming returns are constant. Equity funds don't return 12% every year. They average that over decades, with individual years swinging from −30% to +40%. The SIP formula uses an average rate. Reality is bumpier.
Forgetting inflation. A 12% nominal return at 6% inflation is really 6% in real purchasing power. For long horizons, run the math in real returns or you'll over-project by 50% or more.
Skipping the step-up. Your income usually grows. If your SIP doesn't grow with it, you're effectively saving a shrinking share of income. A 5–10% annual step-up roughly doubles the final corpus.
Ignoring expense ratios. A 1% fund expense ratio compounded over 25 years quietly eats roughly 20% of your final balance. Pick low-cost index funds unless you have a specific reason to pay more.
Stopping the SIP in a crash. The worst time to stop a SIP is when prices are down. That's exactly when each contribution buys more units. Investors who paused in 2008 missed the best entry point of the decade.

Frequently asked questions

A Systematic Investment Plan is a way of investing a fixed amount at a fixed interval — typically monthly — into a mutual fund or index fund. SIPs smooth out market timing and leverage rupee/dollar-cost averaging.
Compound returns. Money you invested in year 1 has 30 years to grow; money in year 30 has only one. The 'returns' bar dwarfs the 'invested' bar at long horizons because the early dollars do the heaviest lifting.
Indian large-cap mutual funds have averaged ~12% over long horizons; US S&P 500 around 10% nominal. Don't extrapolate the last 3 years — pick a humble number (8–12%) so you're not disappointed.
Yes — even small step-ups (5–10% per year matched to your raises) significantly improve outcomes because the additional amounts also compound. This calculator models a flat SIP; for step-ups, mentally bump the monthly amount.
The math works for any monthly contribution that compounds at a known rate. But crypto returns are far more volatile, so any single rate badly underestimates the range of outcomes. Treat the result as one scenario, not a prediction.

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