SIP Calculator
Calculate the future value of a monthly Systematic Investment Plan (SIP).
About SIP Calculator
SIP Calculator projects the future value of a fixed monthly investment using an expected annual return and an investment period. It shows how much you contribute, the modeled future value and the difference attributed to returns. This makes it easier to compare contribution amounts or planning periods without building a monthly calculation in a spreadsheet.
The expected return is an assumption you enter, not a forecast supplied by ToolMyth. This implementation treats each monthly contribution as arriving at the start of the month and applies a constant monthly growth rate. Real investment returns fluctuate, so the result is a scenario for understanding contributions and compounding, not a promise of what an investment will pay.
How to use SIP Calculator
- Set the contribution
Enter Monthly investment using one consistent currency.
- Choose an assumption
Enter Expected annual return as a percentage. Try more than one assumption rather than treating it as a forecast.
- Set the period
Enter Investment period (years).
- Compare the result
Read Future value, Total invested and Total returns. Change inputs to compare scenarios; Copy or Print the result if useful.
Example: Contributions without growth
Investing 5,000 per month for one year with an expected annual return of 0% gives total contributions and future value of 60,000, with modeled returns of 0. Use this to separate saving from assumed growth.
How it works
The tool converts the annual percentage into a monthly rate by dividing by 12 and 100. It converts the period in years into a number of monthly contributions. For a nonzero rate, it uses the future-value formula for equal contributions at the beginning of each month: FV = P × (((1 + r)^n − 1) / r) × (1 + r). P is the monthly contribution, r the monthly rate and n the number of months.
The last factor gives each contribution the extra growth associated with beginning-of-month timing. A calculator using end-of-month contributions can therefore show a different value. At 0%, future value equals contributions alone. Total invested is P × n; Total returns is the projected balance minus that amount. This is a constant-rate model, so it does not simulate market movements, changing deposit amounts or missed contributions.
When is this useful?
- Compare two monthly contribution amounts.
- Explore how a longer contribution period affects a projection.
- Separate total contributions from assumed investment growth.
Things to know
- Returns are modeled at a constant rate, not guaranteed or based on live market data.
- Inflation, taxes and investment charges are not deducted.
- There is no step-up contribution, withdrawal or missed-payment schedule.
Privacy & processing
The contribution, expected return and term are calculated in this browser. This tool does not contact an investment provider or upload your planning inputs to a ToolMyth processing server.
Frequently asked questions
Are contributions at the start or end of each month?
At the start. Each modeled deposit receives that month’s growth; this can differ from end-of-month calculators.
Where does the expected return come from?
You supply it. The tool does not retrieve market returns or recommend an investment.
Is the future value adjusted for inflation?
No. It is a nominal value under your input assumptions, before inflation, taxes and charges.
Can I model contributions that increase each year?
No. This version uses one fixed monthly investment throughout the selected period.