Estimate the value of a monthly investment plan, with an optional yearly step-up.
SIP stands for systematic investment plan: the same amount invested every month. This page uses the common SIP formula. The monthly rate is the yearly rate ÷ 12, compounding is monthly, and each deposit is made at the start of its month, so it earns interest for that whole month. The final value is amount × ((1 + r)^n − 1) ÷ r × (1 + r), where r is the monthly rate and n the number of months. For 1,000 a month at 12% for 1 year, r is 0.01, n is 12 and the value is 12,809.33 against 12,000 invested. The page opens on 5,000 a month at 12% for 10 years: 600,000 invested and 1,161,695.38 final value.
The optional step-up raises the monthly amount by a percentage at the start of every year after the first. With 100 a month, a 10% step-up and no growth, year 1 invests 1,200 and year 2 invests 110 × 12 = 1,320, so 2,520 over 2 years. The yearly table shows the monthly amount for each year, the total invested so far and the value at the end of the year. Leave the step-up empty or 0 for a fixed amount. With a step-up the formula box describes the month-by-month rule instead of a closed formula, because the amount changes.
The monthly amount must be more than 0. The return can be 0 to 100%; at 0 the value is simply the sum of the deposits and estimated returns are 0.00. The years can be decimals only when they make a whole number of months, from 1 month up to 100 years, so 2.5 works and 2.55 does not. The step-up can be 0 to 100%. Amounts have no currency symbol, so rupees, dollars or any other currency work the same, and grouping follows your browser language.
The expected return is a number you type, not a forecast. Real returns change from year to year and can be negative, and the page does not model fees, taxes, inflation or missed months. It does not suggest any fund or product. The estimated returns shown are the final value minus the amount invested. Amounts are rounded to 2 decimals only when shown. This is an estimate, not financial advice.
Value = P × ((1 + r)^n − 1) ÷ r × (1 + r), where P is the monthly amount, r is the yearly rate ÷ 12 ÷ 100 and n the months. For 5,000 at 12% for 10 years, r = 0.01, n = 120 and the value is 1,161,695.38. The page shows these steps with your numbers.
The start. That is the common SIP formula and gives a slightly higher value than end-of-month deposits: 12,809.33 instead of 12,682.50 for 1,000 a month at 12% for a year. The savings-goal-calculator uses end-of-month deposits.
It multiplies the monthly amount by 1 + step-up ÷ 100 at the start of each new year. A 10% step-up turns 100 a month into 110 in year 2 and 121 in year 3. Years 2 and later are shown in the Monthly amount column.
No. The return is an assumption you type, and real returns vary and can be negative. The result shows what the numbers would give if the return stayed constant every month. It is an estimate, not financial advice.
Yes. It is plain arithmetic for any amount saved or invested every month at a constant yearly rate, in any currency. It does not know about fees, taxes or the rules of any product.