SIP Calculator

A SIP (systematic investment plan) - known as dollar-cost averaging in the US and Europe - means investing a fixed amount every month regardless of market mood. It automates discipline and averages your purchase price across ups and downs. Enter your monthly amount, expected return and horizon to see the projected value, your total contributions and the wealth compounding adds on top.

Your numbers

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%
yrs
Advanced: annual step-up
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Projected value —
Total invested—
Wealth gained—
InvestedGains

Results update as you type and are estimates for education only — they don't account for taxes, fees or your personal situation, and nothing here is financial advice. Your inputs stay on this device.

How it works

  1. Enter the amount you will invest every month.
  2. Set the expected annual return of the fund or portfolio (long-run equity index averages are roughly 7-10% nominal; use the fund's asset class as a guide, not last year's hot number).
  3. Choose the investment duration in years.
  4. Read the projected corpus, split into what you contributed versus what compounding earned.

The formula

Future value = PMT x [((1 + i)^n - 1) / i] x (1 + i), where PMT is the monthly investment, i the monthly return and n the number of months - the standard annuity-due formula used for SIPs, assuming each installment is invested at the start of the month.

Frequently asked questions

Is SIP the same as dollar-cost averaging?
Yes - SIP is the term popularized by mutual-fund platforms (especially in Asia), while US and European investors call the identical practice dollar-cost averaging or a standing monthly investment. Same mechanics: fixed amount, fixed schedule, regardless of price.
Is investing monthly better than a lump sum?
Statistically a lump sum invested immediately wins about two-thirds of the time, because markets rise more often than they fall. But most people receive income monthly, so a SIP is simply investing money as it arrives - and its behavioral advantage (no timing decisions, no paralysis) is worth more than the statistical edge for most investors.
Can I stop or change a SIP?
Standing investments into funds or ETFs can normally be paused, raised or reduced at any time without penalty - they are your instructions, not a contract (verify terms for insurance-wrapped or contractual savings products, which can differ). Raising the amount annually alongside pay rises is one of the most powerful wealth habits.
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