SIP Calculator
A SIP calculator shows how a systematic investment plan (SIP) may grow over time, using the same compound-growth math as any regular-contribution investment plan. The terms "systematic investment plan" and "SIP" are used mostly outside the United States (most commonly in India) for what U.S. investors usually call recurring or automatic investing: investing a fixed amount on a set schedule, typically monthly.
To see your projected balance, enter your starting balance, planned SIP amount, expected annual return, and time horizon in the calculator above. The underlying math works the same in any currency, so the dollar sign on the screen doesn't affect how the calculator computes your growth.
How it's calculated
A SIP works by investing a fixed amount at regular intervals, almost always monthly, into a mutual fund or similar pooled investment. Investors call this a systematic investment plan because the schedule is systematic: the same amount, on the same date, regardless of what the market is doing that day. The calculator above models exactly that behavior with its monthly-contribution field. Enter your SIP amount as the monthly contribution, and the calculator compounds it forward using the standard future-value formula, FV = PV×(1+r)^n + PMT×((1+r)^n − 1)/r, where PV is your starting balance, PMT is your monthly SIP amount, r is your monthly return, and n is the number of months.
SIP and lumpsum describe the two ways to fund an investment, and both use the identical growth formula above, just with different inputs. A lumpsum investment puts one amount in on day one and adds nothing after, so you'd set the monthly contribution to zero and let only the starting balance compound. A SIP spreads that same total commitment across many smaller monthly deposits instead. Neither approach is universally better. A lumpsum invested during a rising market has historically outperformed a SIP more often than not, since more money is exposed to growth for longer, while a SIP tends to smooth out the price you pay by buying at many different points, which can reduce regret in a falling or choppy market. Investors who receive income periodically, such as a paycheck, naturally end up running a SIP whether they call it that or not. For the U.S.-terminology version of this same strategy, see the dollar-cost averaging calculator.
"SIP," "lumpsum," and related terms like PPF (Public Provident Fund) and EPF (Employees' Provident Fund) come up most often in searches from outside the United States, particularly India, where SIP investing through mutual funds is extremely common. This calculator's math is currency-neutral: the future-value formula doesn't reference dollars, rupees, or any other specific currency, so the projected growth pattern and multiples hold regardless of which one you use. What this page doesn't cover is country-specific tax treatment, since PPF, EPF, and other local tax rules are outside what a U.S. personal-finance calculator can responsibly advise on. For that, your plan provider's own documentation or a local tax advisor is the right source.
A worked example
Suppose your SIP is $500 a month for 20 years with no starting balance, assuming a 10% annual return. The calculator above projects a final balance of about $379,700.
Your own contributions total $120,000 over those 240 months. The remaining $259,700 is compounding growth, more than double what you put in.
This example uses dollars, but the underlying math is currency-neutral: run the same 500-a-month, 20-year, 10%-return scenario in rupees or any other currency, and you'd land on the same roughly 3.2x multiple between your total contributions and your final balance.
Common mistakes to avoid
- Treating SIP and lumpsum as fundamentally different investments. They're the same underlying investment funded two different ways, so comparing "SIP returns" to "lumpsum returns" as if they were separate asset classes is a mistake.
- Assuming a SIP always beats a lumpsum. In a rising market, putting the full amount in on day one has historically outperformed spreading it out, since more money is exposed to growth for a longer stretch.
- Stopping the SIP during a downturn. A SIP buys more units when prices are low, so pausing contributions during a dip removes the exact benefit the strategy is built around.
- Ignoring fund expenses. A mutual fund's expense ratio quietly reduces your real return every year, and the calculator above has no separate field for it, so net it out of the annual return rate you enter.
- Forgetting that this calculator's output is in whatever currency you typed the numbers in. It doesn't convert currencies or adjust for a specific country's inflation rate, so treat the dollar sign on screen as a stand-in for your own currency.
Frequently asked questions
What is a SIP?
A systematic investment plan (SIP) invests a fixed amount at regular intervals, almost always monthly, into a mutual fund or similar pooled investment. The term is used mostly outside the United States, particularly in India, though the underlying idea is identical to what U.S. investors call recurring or automatic investing, and the dollar-cost averaging calculator covers the U.S.-terminology version of the same math.
What is the difference between SIP and lumpsum investing?
A lumpsum investment puts your full amount in on day one and adds nothing after, so it compounds purely on the starting balance. A SIP spreads that same commitment across smaller, regular monthly deposits instead. Both use the identical compound-growth formula. They just differ in how the money enters the market. Historically, a lumpsum invested during a rising market has outperformed a SIP more often than not, since more money is exposed to growth for longer, while a SIP tends to reduce regret and smooth out the price you pay during a falling or choppy market.
Does this calculator work in currencies other than the U.S. dollar?
Yes, in the sense that the math is currency-neutral. The calculator above computes future value from a rate of return and a contribution schedule, and that formula doesn't reference dollars, rupees, or any other specific currency. Enter your numbers in whatever currency you invest in, and the projected growth pattern and multiples will hold. What the calculator does not do is convert between currencies or account for a specific country's inflation rate, so treat the on-screen dollar sign as a stand-in for your own currency.
What return rate should I use for a SIP calculation?
Match the rate to the fund you're actually investing in rather than to a generic average. Equity mutual funds carry a wide range of long-run returns depending on the market and fund manager, and a rate that looked realistic for one market or one decade can be far off for another. If you're modeling a broad U.S. stock index instead, the S&P 500 calculator uses a commonly cited long-run historical figure you can compare against.
Can I model a SIP into a specific stock instead of a mutual fund?
Yes, using the same calculator with a return rate based on that stock's own history. For that framing specifically, use the stock investment calculator, which walks through how to plug in a ticker's expected return and why a single stock's past performance is a weaker guide than a diversified fund's.
Is a SIP the same as PPF or EPF?
No. PPF (Public Provident Fund) and EPF (Employees' Provident Fund) are specific government-backed savings schemes, not an investing schedule. A SIP is how you fund an investment, while PPF and EPF are what account you're funding. This calculator's compound-growth math can approximate any account with a known rate of return, including PPF or EPF, but the specific rules, limits, and tax treatment for those accounts are outside what a U.S. personal-finance calculator can advise on. Check your plan provider's own documentation for those specifics.
Does this calculator account for taxes on SIP returns?
No, it projects pre-tax growth only. Tax treatment on investment gains varies enormously by country and by account type, so it isn't something a single formula can generalize. Reduce your entered return rate to approximate an after-tax result, or check your own country's or account's specific tax rules before using the projection to plan around.
Sources
We prioritize primary sources for rules, formulas, rates, limits, and definitions. See our calculator methodology and editorial policy.