Project the future value of a systematic investment plan from regular contributions, assumed annual return, and investment horizon.
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Investment Planning
A Systematic Investment Plan (SIP) lets you invest a fixed amount every month into a mutual fund or index fund. This calculator projects the future value of those regular contributions at a given expected annual return.
Each monthly contribution earns returns and those returns earn further returns. Over long periods, compounding produces exponential growth — a 500/month SIP at 12% annual return for 10 years grows total invested capital of 60,000 to a significantly larger future value.
SIPs also benefit from rupee-cost averaging: by investing the same amount each month, you buy more units when prices are low and fewer when prices are high, smoothing out market volatility over time.
The SIP future value uses the annuity-due formula.
FV = P × [((1+r)ⁿ − 1) / r] × (1+r)
P = monthly investment, r = monthly rate (annual rate / 12), n = total months.
Assumes a constant annual return, which never happens in real markets. Actual returns will vary year to year. Does not account for inflation, taxes on capital gains, or fund expense ratios. Use this as a directional projection, not a guarantee.
Frequently asked questions
Historical equity index returns (S&P 500, Nifty 50) have averaged roughly 10–12% annually over multi-decade periods. For conservative planning, use 8–10%. For debt/bond funds, 6–8%. Always remember past returns do not guarantee future performance.
Research shows lump-sum investing outperforms SIP about two-thirds of the time because markets tend to rise over time. However, SIP reduces behavioural risk — it removes the need to time the market and enforces discipline.
No. SIP is an investment strategy, not a product. Returns depend entirely on the underlying fund’s performance, which fluctuates with market conditions.
Yes. A step-up SIP (increasing the monthly amount annually by 5–10%) significantly improves long-term wealth accumulation and helps keep pace with income growth and inflation.
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