SIP Calculator

A SIP calculator estimates the future value of systematic monthly investments using compound interest. Enter your monthly amount, expected annual return, and time horizon — the calculator shows total invested, expected returns, and final portfolio value. It also supports step-up contributions, lump sum additions, inflation adjustment, and goal-based reverse calculation.

Step-up SIP increases your monthly contribution by a fixed percentage each year, mirroring salary growth. For example, starting at €500/month with a 10% annual step-up means you invest €550 in year 2, €605 in year 3, and so on. Over 15 years this can nearly double your final corpus compared to a flat €500/month SIP at the same return rate.

SIP invests a fixed amount monthly, automatically buying more units when prices fall and fewer when they rise — a strategy called dollar/euro cost averaging that reduces the impact of market volatility. Lump sum invests all capital at once, which is more advantageous in consistently rising markets but riskier if prices drop shortly after investment. Use the Comparison Mode in this calculator to model both side by side.

Inflation erodes purchasing power over time. A portfolio worth €1,000,000 in 25 years may be worth only €480,000 in today's money at 3% inflation. Enable the inflation adjustment toggle to see the real (inflation-adjusted) value of your future wealth. For accurate planning, always compare your expected return against the inflation rate — if your SIP earns 10% and inflation is 4%, your real return is approximately 6%.

XIRR (Extended Internal Rate of Return) is the accurate measure of SIP performance because it accounts for the timing of each monthly cash flow — your first installment earns returns for the full period, your last barely starts. CAGR assumes a single investment and overstates SIP returns. A fund showing 14% nominal growth may have an XIRR of 11–12%. Always compare mutual funds using XIRR, not headline return figures.

Every mutual fund deducts an annual expense ratio from its NAV before calculating your returns. Index ETFs typically charge 0.1–0.2%, while active funds charge 1.5–2.5%. A 1.5% difference in expense ratio on a €500/month SIP over 30 years can reduce your final portfolio by €60,000–€80,000. Always enter the net-of-fees expected return in this calculator — if your fund targets 12% gross but charges 1.5%, enter 10.5%.

Enter your target amount (e.g., €500,000 for retirement), expected annual return rate, and investment horizon in years. The calculator uses the PMT formula — PMT = FV × r / ((1+r)^n − 1) — to find the exact monthly SIP needed. For example, reaching €1,000,000 in 25 years at 10% requires investing €1,168/month. Enable inflation adjustment to account for the rising cost of living.

Expected return depends on your asset allocation. Global equity index funds have historically returned 8–12% annually over long periods (10+ years). Balanced portfolios (60% equities, 40% bonds) typically return 6–8%. Conservative bond-heavy portfolios return 3–5%. Always subtract your fund's expense ratio from the gross return. Use 10% as a baseline for long-term equity SIP projections, but recognize that past returns do not guarantee future results.

Most mutual funds allow you to pause, reduce, or stop SIP installments without penalty, though rules vary by provider. Missing installments does not close the account — your existing corpus continues to grow. However, even a few missed months significantly reduces long-term compounding. If cash flow is tight, consider reducing the SIP amount temporarily rather than stopping entirely. This calculator assumes consistent monthly contributions.

Neither is universally better — it depends on market conditions and available capital. SIP reduces the risk of investing a large sum right before a market downturn (via rupee cost averaging), which makes it popular for investors without a large lump sum or who prefer a disciplined, automatic approach. A lump sum invested at the start of a sustained bull market can outperform a SIP over the same period, but this is impossible to predict in advance.

Most fund houses allow a few missed installments without penalty, though repeated misses can lead to the SIP being paused or cancelled by the fund. Missing installments reduces your total invested amount and compounding time, which lowers your final corpus compared to the plan — but it does not erase gains already made on prior installments.