SIP & Investment Return Calculator
Estimate the future value of a recurring investment (SIP) — free, instant.
Seeing What Regular Small Investments Could Grow Into
Investing a fixed amount every month rather than a single lump sum is a common strategy (a Systematic Investment Plan, or SIP), and understanding what that recurring habit could realistically grow into over years requires compound growth math that isn't intuitive to estimate by rough mental calculation. This tool projects the future value of a recurring monthly investment based on your contribution amount, expected return rate, and time horizon.
The Math Behind the Projection
Unlike a single lump-sum investment that compounds as one growing block, a SIP involves many separate monthly contributions, each starting its own compounding journey from the moment it's invested — the first month's contribution compounds for the entire remaining period, while the final month's contribution barely compounds at all before the projection's end date. The calculation sums the future value of every individual monthly contribution, each compounded for its own remaining time period, using a standard future-value-of-an-annuity formula rather than a simple single-lump-sum compound interest calculation.
A Worked Example
Investing Rs. 10,000 monthly for 10 years at an assumed 12% annual return projects to roughly Rs. 23-24 lakhs at the end of the period — notably more than the roughly Rs. 12 lakhs actually contributed (10,000 × 120 months), with the difference representing the cumulative effect of compounding returns on each individual monthly contribution across its own remaining time in the market. Extending the same monthly contribution to 20 years instead of 10, at the same assumed rate, doesn't just double the result — it grows disproportionately larger, since the earliest contributions now have twice as long to compound.
Why Time Matters More Than the Contribution Amount Alone
A meaningfully longer investment horizon at a modest monthly contribution can outperform a much larger contribution over a shorter horizon, purely because of how much longer the earlier compounding has to work — this is the core insight behind "start investing early" advice, and seeing the actual projected numbers side by side for different time horizons makes that abstract advice concrete rather than just a vague platitude.
Who Actually Uses This Kind of Projection
Someone deciding how much to commit to a monthly SIP investment, wanting to see a realistic projected outcome before committing to a specific contribution amount. Financial planners illustrating the power of consistent, long-term investing to a client considering different contribution scenarios. Anyone comparing the projected outcome of starting a SIP now versus delaying it by a few years, to understand the real cost of postponing.
Why This Is a Projection, Not a Guarantee
The calculation assumes a constant annual return rate applied consistently across the entire time horizon — real investment returns fluctuate year to year and are never actually constant, so this projection illustrates the mathematical effect of compounding under an assumed scenario, not a promised or guaranteed future outcome. Actual results will differ from any projection, sometimes substantially, based on genuine market performance over the actual investment period. This tool is for illustration and planning purposes, not financial advice, and any real investment decision should factor in your own risk tolerance and, ideally, professional financial guidance.
Calculated Instantly, Privately
The projection runs with client-side JavaScript the moment you adjust any input — no account or data submission is required, letting you instantly compare different scenarios without any of your financial planning details being transmitted anywhere.
Is the projected return rate guaranteed?
No — the calculation assumes a constant rate you input for illustration purposes; actual investment returns fluctuate and are never guaranteed at any fixed rate.
Why does the projected total seem much higher than my total contributions?
This reflects compounding returns accumulating on each monthly contribution over its own remaining time in the projection — the difference between total contributed and projected value represents the assumed cumulative growth, not additional money contributed.
Should I use a higher or lower assumed return rate for a realistic projection?
This depends on your specific investment type and risk tolerance; consider using a conservative rate for planning purposes rather than an optimistic best-case assumption, and consult a financial advisor for guidance specific to your situation.
Does this account for inflation reducing the real value of the projected amount?
No — this shows nominal projected value at your assumed return rate; for a sense of real purchasing power, consider running the projected amount through an inflation calculator as well.
Is this financial advice telling me how much to invest?
No — this is an illustrative calculation tool, not personalized financial advice; investment decisions should account for your individual circumstances, ideally with professional guidance.
A Second Example
Two people starting SIP investments of the same monthly amount, one beginning at age 25 and the other at age 35, run their respective 30-year and 20-year projections side by side — the ten-year head start produces a dramatically larger projected final value despite both contributing the same monthly amount throughout, a concrete illustration of exactly how much a decade of additional compounding time is actually worth.