SIP Calculator
Systematic investment plan maturity value, with annual step-up and inflation adjustment
SIP Calculator
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Results
Based on your results — what to do next:
Is this enough to retire on?
Your SIP builds $252,288 — check that against the nest egg the 4% rule says your lifestyle actually needs.
SIP vs. a one-time lump sum
You invest $90,000 in monthly slices. See how the same total invested all at once would have compared.
Model the inflation drag
Inflation cuts your $252,288 maturity value down to $161,934 in real terms — stress-test other rates.
A SIP (Systematic Investment Plan) is a fixed amount invested on the same day every month, so each installment compounds for a different length of time. Investing $500/month for 15 years at a 12% expected return grows to roughly $252,000 from $90,000 of contributions — about 64% of the final balance is compounding, not your own money. This calculator adds two things most SIP tools skip: an annual step-up that raises your contribution as your income grows, and an inflation adjustmentthat shows what the maturity value is actually worth in today's dollars.
How SIP Maturity Value Is Calculated
A SIP is a series of equal cash flows — an annuity. Because the money is invested at the start of each month, it is an annuity due, which is why the standard formula carries an extra (1 + i) multiplier. Each installment is compounded for the number of months remaining until maturity, and the calculator sums all of them.
| Variable | Definition |
|---|---|
| M | Maturity value — the total portfolio value at the end of the term |
| P | Monthly SIP installment |
| i | Monthly rate of return = annual expected return ÷ 12 |
| n | Total number of monthly installments = years × 12 |
Worked example: $500 per month for 15 years at 12% annual return. Here i = 0.12 ÷ 12 = 0.01 and n = 180. M = 500 × [((1.01)180 − 1) ÷ 0.01] × 1.01 = 500 × 499.58 × 1.01 ≈ $252,290. You contributed $90,000, so roughly $162,290 came from compounding. Add a 10% annual step-up and the same starting contribution produces well over $400,000 — because every raise you give your SIP still has a decade or more to compound.
The inflation adjustment then divides the maturity value by (1 + inflation)years. At 3% inflation, that $252,290 has the purchasing power of about $161,900 in today's money — the number you should actually plan around.
💡 Expert Pro-Tip
The Step-Up Beats the Return Assumption: Investors spend enormous energy hunting for a fund that might deliver 13% instead of 11%. Over 20 years on a $500 SIP, that extra 2% is worth roughly $150,000. A 10% annual step-up on the same SIP — which costs you a $50 increase in year two, easily absorbed by a normal raise — is worth more than double that, and it requires no forecasting skill whatsoever. Automate the increase to hit the same month as your annual raise so the money never reaches your checking account. Contribution growth is the one variable in this calculator you fully control; the return rate is the one you don't.
SIP Calculator FAQ
What is a SIP calculator?
A SIP calculator projects what a fixed recurring investment grows to over time. Enter the monthly amount, the term in years, and an expected annual return, and it compounds every installment forward to a maturity value — then separates the result into what you contributed versus what compounding added. It is the standard planning tool for mutual fund investors, index fund investors, and anyone using automatic monthly transfers into the market.
What is a step-up SIP and is it worth it?
A step-up (or top-up) SIP raises your monthly contribution by a set percentage each year, usually matched to salary growth. It is close to free money: a 10% annual step-up on a 20-year SIP typically produces 70–100% more at maturity than a flat contribution, because your largest installments still get 10+ years of compounding. The increases are small enough each year that most people never feel them.
Are SIP returns guaranteed?
No. A SIP is a schedule for investing, not a product with a fixed rate. If the underlying fund is equity-based, your actual return will swing year to year and could be negative over short periods. The calculator applies a constant assumed rate to show the average path — real outcomes fluctuate around it. Run the calculator at two or three different return rates to see the realistic range instead of anchoring on one number.
SIP vs. lump sum — which is better?
Historically, lump-sum investing wins about two-thirds of the time simply because the money is in the market longer. But that assumes you have a lump sum and deploy it without hesitation. SIP wins on behavior: it removes timing decisions, averages your cost across market highs and lows, and matches monthly income. If you have idle cash, compare both with the dollar-cost averaging calculator.
Does this calculator account for taxes and fees?
Not directly — enter a return rate that is already net of the fund's expense ratio for the most accurate result. If a fund quotes 12% gross and charges a 0.75% expense ratio, enter 11.25%. Capital gains tax is charged on redemption, not annually, so it does not affect the growth path shown here, but it will reduce what you actually keep when you sell.
Why does the inflation-adjusted number matter so much?
Because a maturity value 25 years out is quoted in future dollars that buy far less than today's. At 3% inflation, purchasing power halves roughly every 24 years. A $1,000,000 SIP maturity value in 25 years is worth about $478,000 in today's terms. Planning against the nominal number is the most common way people under-save without realizing it.