FINANCEVELIX / Investment calculators
SIP calculator (systematic investment plan)
FINANCEVELIX / CRYPTO
Crypto tools
Estimate what a fixed monthly investment could grow to over a number of years at an annual return you assume. Add a yearly step-up to raise the monthly amount each year; the result is an illustration, not a forecast or a promise.
SIP calculator
Use the same currency for every price, fee and amount. Changing this label does not convert values.
FINANCEVELIX / Your calculation
Your calculation
Enter your assumptions, then select Calculate.
Repaying a loan? Work out the EMI with the loan calculator →
FINANCEVELIX / Method
How the SIP value is calculated
A SIP invests the same amount at the start of every month, and each investment grows at the monthly rate until the end, so earlier investments grow the longest. Without a step-up the value is P × ((1 + i)^n − 1) ÷ i × (1 + i), where P is the monthly amount, i the monthly rate and n the number of months.
Example: 1,000 a month for 12 months at an assumed 12% a year (i = 1%) gives about 12,809.33 for 12,000 invested.
Most SIP calculators use the annual rate ÷ 12 as the monthly rate. If your figure is an annual growth rate such as a CAGR, choose that option: the monthly rate is then (1 + rate)^(1 ÷ 12) − 1, which gives a slightly lower value.
With a step-up, the monthly amount rises by the chosen percentage every 12 months and the value is added up month by month. The result only shows what the assumed return would produce; it is not a forecast of market returns.
Frequently asked questions
Is the SIP return guaranteed?
No. The calculator applies the return you enter as a constant rate. Market-linked investments such as equity funds rise and fall, and the actual value can end up below the amount invested.
What does a step-up do?
It raises the monthly amount once a year. With 10,000 a month and a 10% step-up, the monthly amount becomes 11,000 in year 2 and 12,100 in year 3, so more is invested in later years.
How do I calculate a SIP in a spreadsheet?
Use =FV(rate/12, months, -amount, 0, 1); the final 1 means each investment is made at the start of the month. For 1,000 a month for 12 months at 12%, =FV(0.12/12, 12, -1000, 0, 1) returns about 12,809.33.