Monthly investing (SIP)
Invest a fixed amount every month and see what it grows into, and how much of that is returns.
$1,000 a month grows to $476K
After 15 years you’ve put in $180,000, and returns add $295,931: 2.6× what you invested.
Shown in future amounts. Turn on Today’s money to adjust for 6% inflation.
Growth over time
From year 12, returns have added more than you’ve put in. Compounding does most of its work at the end.
Years from nowShow the numbers as a table
| Year | You put in | Value |
|---|---|---|
| 1 | $12,000 | $12,766 |
| 2 | $24,000 | $27,065 |
| 3 | $36,000 | $43,079 |
| 4 | $48,000 | $61,015 |
| 5 | $60,000 | $81,104 |
| 6 | $72,000 | $103,603 |
| 7 | $84,000 | $128,801 |
| 8 | $96,000 | $157,024 |
| 9 | $108,000 | $188,633 |
| 10 | $120,000 | $224,036 |
| 11 | $132,000 | $263,687 |
| 12 | $144,000 | $308,096 |
| 13 | $156,000 | $357,834 |
| 14 | $168,000 | $413,540 |
| 15 | $180,000 | $475,931 |
Year-by-year table15 years
| Year | Monthly | Put in so far | Value at year end |
|---|---|---|---|
| 1 | $1,000 | $12,000 | $12,766 |
| 2 | $1,000 | $24,000 | $27,065 |
| 3 | $1,000 | $36,000 | $43,079 |
| 4 | $1,000 | $48,000 | $61,015 |
| 5 | $1,000 | $60,000 | $81,104 |
| 6 | $1,000 | $72,000 | $103,603 |
| 7 | $1,000 | $84,000 | $128,801 |
| 8 | $1,000 | $96,000 | $157,024 |
| 9 | $1,000 | $108,000 | $188,633 |
| 10 | $1,000 | $120,000 | $224,036 |
| 11 | $1,000 | $132,000 | $263,687 |
| 12 | $1,000 | $144,000 | $308,096 |
| 13 | $1,000 | $156,000 | $357,834 |
| 14 | $1,000 | $168,000 | $413,540 |
| 15 | $1,000 | $180,000 | $475,931 |
How this is calculated
You invest at the start of each month. The balance grows at the monthly version of a 12% yearly return: 0.949% a month.
balance = (balance + monthly) × (1 + 0.949%)
That is the future value of an annuity due. FV = P × ((1 + i)n − 1) ÷ i × (1 + i)
Today’s money divides an amount in year n by (1 + 6%) to the power n.
Returns are assumed steady. Real markets swing, so treat this as a central case, not a promise. Tax and fund costs aren’t modelled.
Frequently asked questions
What is a SIP?
A systematic investment plan puts a fixed amount into a mutual fund or other investment every month, usually by automatic debit. Buying every month spreads your purchases across market highs and lows.
How is the SIP maturity value calculated?
Each monthly instalment grows for the months left until the end. The calculator turns the yearly return into a monthly rate, (1 + r)^(1/12) − 1, and adds up the growth of every instalment.
What return should I assume for a SIP?
Broad equity funds have returned roughly 10–12% a year over long periods in India, and around 7% a year after inflation for global stock markets, but nothing is guaranteed. Try a cautious and an optimistic rate and plan around the cautious one.
Should I increase my SIP every year?
Yes, if you can. Raising it in line with your pay, even 5–10% a year, makes a large difference over 15–20 years. The step-up SIP calculator shows the effect.