How to use a SIP or regular investment calculator
A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular intervals. The term SIP is especially common in India, while similar strategies are often called recurring, regular, or periodic investing elsewhere. This calculator separates your money contributed from estimated growth and purchasing power.
How to use this calculator
Start with the simple fields: starting investment, monthly contribution, expected annual return, years, inflation, and country or market. Open Advanced Options to model a Step-Up SIP, annual investment fees, currency, and beginning- or end-of-month contributions. Use assumptions you can explain, then compare more than one case.
How to interpret the result
The projected portfolio value combines the starting investment and recurring contributions with an equivalent monthly compound rate. The total invested is your cash input; estimated investment growth is the balance above that amount. A positive inflation assumption makes the inflation-adjusted value lower because it expresses future money in approximate purchasing power today.
Decision checks
Check that the contribution fits beside emergency savings, debt payments, and near-term goals. Review fund or platform charges, diversification, access rules, tax treatment, contribution limits, and whether you could keep investing through an income interruption. These checks matter more than a precise-looking single projection.
Compare realistic scenarios
Compare investing more each month, starting earlier, extending the time horizon, changing the assumed return, increasing contributions annually, and reducing fees. The Conservative, Moderate, and Higher Growth presets are hypothetical assumptions only and are not forecasts of future performance.
Limitations and important context
The model applies a smooth monthly return, a constant inflation rate, and a simple annual fee drag. Real markets fluctuate, contributions can be missed, fees and taxes vary, and the order of returns matters. Country selection changes context and currency formatting; it does not add country-specific taxes or product rules.
For general investing education, the US Securities and Exchange Commission explains risk and diversification through Investor.gov investing basics. UK readers can review FCA InvestSmart guidance; Indian readers can check SEBI investor education. These sources provide context, not a personalized recommendation.
SIP calculation example
Assumes a starting balance of 0, 500 per month, 20 years, a 7% annual return, 2.5% inflation, no fee, and end-of-month contributions. Values below are generated using the same model as the calculator.
Frequently asked questions
What is a SIP calculator?
It estimates how a starting amount and recurring investments could grow under an assumed return, time period, contribution timing, fees, and inflation rate.
What return should I enter in a SIP calculator?
Use a cautious, explainable assumption and compare a range. Past performance is not a promise, and actual returns vary over time.
What is a Step-Up SIP?
It increases the recurring contribution at a regular interval, here once at the start of each year. It models rising savings, not a guaranteed investment return.
Is SIP the same as compound interest?
No. SIP describes the contribution schedule. Compounding describes how returns may earn further returns; this calculator combines both ideas.
What is the difference between SIP and lump-sum investing?
A lump sum invests one larger amount, while a SIP spreads contributions over time. The timing of deposits changes how long each amount can grow.
How do investment fees affect long-term returns?
A recurring fee lowers the effective growth rate, so its estimated effect can become larger over a long horizon. Check the actual fund, platform, and account charges separately.
Trust and methodology
This calculator provides estimates for educational and planning purposes only. Investment returns are not guaranteed, and the results do not constitute investment, tax, or financial advice.