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SIP / Recurring Investment Calculator

Calculate returns from monthly investments with step-up and full yearly breakdown.

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Compound Interest Calculator

Example 1 — Lump sum, no contributions

A = 1,00,000 × (1.10)^10 ≈ ₹2,59,374 — more than 2.5× growth

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📘 What is the SIP / Recurring Investment Calculator?

A Systematic Investment Plan (SIP), or recurring investment, lets you invest a fixed amount every month into mutual funds, index funds or retirement accounts — turning a habit into a sizeable corpus through rupee-cost averaging and compounding. This calculator projects your SIP's maturity value, total invested amount, and total gains, with optional step-up and an initial lump sum, plus a full yearly breakdown table.

⚙️ How SIP / Recurring is calculated

How SIP maturity is calculated

Each monthly instalment compounds from the month it is invested until the end of your tenure. Mathematically, the future value of a SIP is the sum of a series of compounding cash flows: FV = Σ [instalment × (1 + r)^n], where r is the monthly rate of return and n is the number of months that instalment has been invested.

Rupee-cost averaging explained

Because you invest the same amount every month regardless of market price, you automatically buy more units when prices are low and fewer when prices are high. Over time this averages your purchase cost and reduces the impact of trying (and failing) to time the market — though it does not guarantee profits.

Step-up SIP mechanics

A step-up SIP increases your monthly contribution by a fixed percentage each year. This calculator applies the step-up at each anniversary of your SIP and recalculates the contribution for the following 12 months, then continues compounding — matching how most mutual fund platforms implement step-up SIPs.

Reading the yearly breakdown table

The table shows, for each year of your SIP: the contribution made that year, the cumulative amount invested, and the portfolio value at year-end. This makes it easy to see the year-over-year acceleration — early years show contributions dominating the total, while later years show returns dominating.

SIP future value (monthly compounding)

FV = Σ [instalment × (1 + r)ⁿ] for each month n

r = monthly return rate = annual rate ÷ 12

🧮 Worked examples

Example 1 — Classic SIP

₹5,000/month for 15 years at an expected 12% annual return, no step-up.

→ Total invested ≈ ₹9,00,000 · Maturity value ≈ ₹25–26 lakh

Example 2 — With 10% annual step-up

Same as Example 1, but the monthly amount increases by 10% every year.

→ Total invested ≈ ₹17.5 lakh · Maturity value ≈ ₹38–40 lakh — roughly 50% higher

Example 3 — SIP + lump sum

₹2,00,000 lump sum invested upfront, plus ₹3,000/month for 20 years at 12%.

→ The lump sum alone grows to roughly ₹19–20 lakh; combined with the SIP, total maturity exceeds ₹50 lakh

💡 Original insights & how to use this calculator

Matching SIP amount to a future goal

Use this calculator alongside the Goal-Based Savings Calculator: first find out how much monthly investment a target (like a ₹50 lakh house down payment in 10 years) requires, then come back here to see how a step-up could let you start with a smaller, more comfortable amount.

Why "time in market" beats "timing the market"

Run the calculator with the same monthly amount but different start dates 5 years apart. The difference in final value — driven purely by those extra 5 years of compounding — is usually far larger than any gain from trying to pick the "perfect" entry point.

Stress-testing your assumptions

Equity mutual funds do not return a steady 12% every year — returns are volatile. Try the calculator at 8%, 12%, and 15% to build a realistic range of outcomes rather than anchoring on a single optimistic number.

SIP vs lump sum for a windfall

If you receive a large one-time amount, this calculator (with the lump-sum field) shows how it compares to investing the same total amount as a SIP over the same period — useful context before deciding how to deploy a bonus, gift, or inheritance.