Mutual Fund Calculators

How to Calculate SIP Returns for Monthly Investments

Learn the SIP future value formula, how to convert effective annual rates and how monthly contribution timing affects projected gains or losses.

Published by: Arunangshu Das

Founder of TCI

Published:: Nov 9, 2026
Updated:: Nov 9, 2026
Reviewed:: Nov 9, 2026

Editorial dates are calendar dates in India Standard Time.

Keywords

systematic investment plan calculator
monthly investment calculator
SIP future value
effective annual to monthly SIP return
beginning versus end of month investing

Estimate a monthly investment plan

A SIP projection asks what a sequence of equal deposits might be worth at a future checkpoint. Two plans with identical contributions can give different results if the first deposit or the definition of the annual rate changes.

What a SIP projection measures

A systematic investment plan (SIP) is a schedule for investing a fixed amount at regular intervals. This projection models monthly contributions from a zero opening balance.

A constant rate describes a hypothetical growth path. With real recurring purchases, different sequences of market returns can produce different outcomes even when the asset has the same full-period return.

Compare plans on the same assumptions

Hold the annual rate and number of months steady to compare contribution sizes. Hold the contribution steady to compare timing or run negative, zero and positive return scenarios. Treat each number as an illustration for its own assumptions.

SIP future value formula

Convert the effective annual return A (as a decimal) to monthly factor f = (1 + A)^(1/12). For n months, multiply each contribution at index k by f^(n − k). Sum these terminal contributions and subtract invested principal to define the signed gain or loss.

Formula

FV = C × Σ f^(n − k), where f = (1 + A)^(1/12)

C is the fixed contribution in one currency. A is the annual effective return as a decimal.
For nonzero monthly rate r = f − 1, end-of-month FV = C × (f^n − 1) ÷ r. Beginning timing multiplies that value by f.
At zero rate, either schedule has FV = n × C.

Compare two 12-month schedules

At 500 per month for 12 months and a 12% effective annual return, 6,000 is contributed. End-of-month investing projects 6,323.25, a gain of 323.25. Beginning-of-month investing projects 6,383.25, a gain of 383.25.

The difference is 60.00. Each beginning payment receives an extra month of growth, including the final 500 payment.

Enter 500, 12% and 12 months.
Choose end of month. Indices 1 to 12 receive 11 to 0 growth periods.
Choose beginning of month. Indices 0 to 11 receive 12 to 1 growth periods.

Read principal and gain separately

An earlier contribution has one extra month of exposure. It increases the ending value when the assumed rate is positive and reduces it when the assumed rate is negative. At zero return the ending value equals principal.

At a zero assumed rate, the same 12 contributions total 6,000. At a negative rate the signed loss measures the reduction below that contributed total. Display rounding can cause a one-cent difference when adding displayed principal and gain.

Enter a monthly investment scenario

Enter one fixed contribution in major currency units, an effective annual percentage and the number of complete months. Choose beginning or end timing and compare principal, gain or loss and projected ending value.

To model five years enter 60 months. Select the market matching the currency you used. No exchange rate is applied.

Choose the tool that matches the cash flows

The compound interest calculator also models an opening balance and supports different compounding schedules. The future value calculator uses an effective rate per equal period. For irregular dated actual contributions and an ending balance, a money-weighted return calculation answers a different question from this projection.

Match the payment checkpoints

Months are equal model periods. Index 0 is the opening checkpoint and index n is the valuation checkpoint. Beginning payments run from 0 to n−1 and end payments from 1 to n. No payments occur at zero months or with a zero contribution.

A first payment at index 0 grows for n months. The last end payment is counted in principal and ending value but never grows within the chosen horizon.

Know the bounds and exclusions

Enter up to 10^12 per month, 0 to 1,200 complete months and an annual percentage above −100% and up to 100%. Decimal inputs support 12 fractional digits. The model uses 80 significant digits and rejects ending values above 10^30. Money display rounds to two places.

Equal periods use no calendar, business-day or leap-year convention. The model retains tiny signed changes and labels nonzero amounts that round to zero.

Avoid comparing different rate conventions

Dividing an effective annual percentage by 12 changes its meaning. Keep the input in one currency and match timing when comparing with another calculator. Use separate scenarios to see the effect of changing the return assumption.

A monthly 1% rate grows a lump sum by about 12.68% in 12 months. The monthly equivalent of 12% annual effective growth is about 0.948879%.

Use the same model across five markets

In India the common query is SIP. For US or Canadian dollar examples, monthly contributions or regular investing describe the same modeled schedule. In the UK use pounds and in Australia use Australian dollars. The selector formats USD, GBP, CAD, AUD and INR.

The projections use unadjusted future currency amounts. Account-specific tax, allowances, fees and inflation can affect what an investor keeps or can buy. The tool does not model those adjustments.

Educational scope

Educational constant-return projection. It excludes opening balances, irregular or step-up payments, dates, taxes, fees, inflation, FX and trading details. It provides no guarantee or personalized investment advice.

Companion calculator

Put the method into practice.

Open SIP Calculator

Frequently asked questions

Why do two SIP calculators give different answers?

Check the monthly rate conversion, whether the first payment is made now or one period later, and whether the forecast deducts fees. Compare all three before comparing results.

Is 12% divided by 12 the monthly rate?

One percent monthly compounds to about 12.68% over a year. To match a 12% effective annual assumption, take the twelfth root of 1.12 and subtract one.

Does dollar-cost averaging prevent losses?

Recurring purchases spread entry points over time. Actual prices can still fall and a fixed-rate model does not calculate units bought at changing prices.

How do I calculate my actual SIP return?

Record actual dated cash flows and an ending value, then use a money-weighted method such as XIRR with the correct cash-flow signs.

Can I add an existing balance?

Use the Future Value Calculator for a scenario with both an opening amount and recurring payments. Enter a rate per period there and match it to the payment interval.

Does switching from USD to INR convert my result?

The market selector changes the label and formatting. A result based on 500 monthly stays numerically the same until you change the contribution.

Sources and review

Sources reviewed Nov 9, 2026. Consult current local rules before relying on time-sensitive information.