How to use the SIP calculator
Enter the amount you plan to invest each month, the annual return you expect, and how many years you will keep investing. The calculator projects the maturity value along with how much you invested and how much of the total came from growth.
How SIP returns are estimated
A SIP is a series of monthly investments, each compounding until maturity. The tool uses the future-value-of-an-annuity formula with monthly compounding: M = A × [((1 + i)^n − 1) ÷ i] × (1 + i), where A is the monthly amount, i is the monthly return, and n is the number of months.
The power of consistency
Investing $500 a month for 10 years at a 12% expected return builds roughly $115,000 from just $60,000 invested. Because you buy in every month, you also average out market highs and lows, a concept known as rupee/dollar cost averaging.