SIP Calculator
Plan your systematic investment in any major currency. See future value, total invested, and wealth gained — instantly and privately.
What is an SIP?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount of money at regular intervals—usually monthly—into a mutual fund or index fund. Instead of saving up a large lump sum and trying to find the "perfect" time to invest, you invest consistently, regardless of whether the market is up or down that day.
Why is it so powerful?
SIPs combine two powerful financial forces: compounding and rupee/dollar cost averaging.
- Compounding: When your investment earns a return, that return is reinvested. The next month, you earn a return on your original money plus the previous return. Over decades, this snowball effect produces exponential growth.
- Cost Averaging: Because you invest the same amount every month, you automatically buy more shares when prices are low and fewer shares when prices are high. This lowers your average cost per share over time.
The SIP Formula
The calculator uses the standard formula for the future value of an ordinary annuity:
FV = P × [ ( (1 + r)^n – 1 ) / r ] Where: P = Monthly Investment Amount r = Monthly Rate of Return (Annual Rate ÷ 12 ÷ 100) n = Total Number of Months (Years × 12)
If the expected annual return is 12%, the monthly rate (r) is 0.01. If you invest for 10 years, the total number of months (n) is 120.
Choosing a Return Rate
The hardest part of any SIP calculator is deciding what "Expected Return" to type in. Here is a realistic framework:
Equity Funds (8% – 12%)
Historically, stock markets have returned around 7–10% annually in developed economies (like the US or UK) after adjusting for inflation, and slightly higher in fast-growing emerging markets (like Pakistan, Bangladesh, or Turkey). However, this is highly volatile. Some years will be +20%, some will be -15%. A 10–12% assumption is common for long-term equity projections.
Debt Funds / Fixed Income (4% – 7%)
Bonds, money market funds, and fixed deposits offer lower returns but with much less risk. If you are investing for a short-term goal (under 5 years), you should use a lower rate to reflect the safer asset class.
Frequently Asked Questions
What is an SIP?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (usually monthly) in mutual funds or index funds. Instead of trying to time the market with a lump sum, you invest consistently over time, which averages out the purchase price.
How is SIP future value calculated?
The calculator uses the future value of an ordinary annuity formula: FV = P × [((1 + r)^n – 1) / r], where P is the monthly investment amount, r is the monthly rate of return (annual rate divided by 12), and n is the total number of months.
What return rate should I assume?
This depends heavily on the asset class. Broad equity index funds have historically returned around 8–10% annually over long periods in developed markets, and higher (but more volatile) in emerging markets. Conservative debt funds might return 4–6%. Never assume a guaranteed return; markets fluctuate.
Can I use this for Pakistani, Bangladeshi, or Middle Eastern currencies?
Yes. The calculator supports PKR, BDT, SAR, TRY, and EGP alongside global currencies like USD, EUR, and GBP. The underlying math is the same regardless of currency; only the symbol changes.
Is my financial data sent anywhere?
No. Every calculation runs in JavaScript on your device. There is no API call and no data collection.
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