How to use the SIP calculator
- Enter your monthly investment amount.
- Choose the investment period in years.
- Set the expected annual return — use a realistic long-term figure.
- Optionally add an annual step-up to raise your contribution each year.
SIP formula explained
Without step-up, the future value of a SIP is:
FV = P × [(1 + i)n − 1] ÷ i × (1 + i)
- P = monthly investment
- i = monthly rate = annual return ÷ 12 ÷ 100
- n = number of monthly investments
The extra (1 + i) term reflects that each payment is invested at the start of the month. With a step-up, the monthly amount for year y is P × (1 + step-up)y−1; the calculator simulates every month to combine them.
Worked example
Investing 500 a month for 15 years at 10% gives a total investment of 90,000 and an estimated value of about 209,000. With a 10% annual step-up, you invest about 191,000 and the estimate rises to roughly 372,000.
Getting the most from regular investing
- Stay invested through downturns — regular buying lowers your average cost when prices fall.
- Raise contributions with every pay rise using the step-up option.
- Choose low-cost, diversified funds such as broad index funds.
- Compare against a one-off lump sum with the compound interest calculator.