SIP Calculator Online (Systematic Investment Plan)
Calculate mutual fund and ETF compound growth through disciplined monthly Dollar Cost Averaging (DCA) with step-up features.
SIP Investment Plan
Boost your SIP alongside annual salary raises (e.g. 5% - 10%/year)
After 15 years of disciplined compounding
| Year | Invested Capital | Estimated Interest | Portfolio Balance |
|---|---|---|---|
| Year 1 | $6,000 | +$405 | $6,405 |
| Year 2 | $12,000 | +$1,622 | $13,622 |
| Year 3 | $18,000 | +$3,754 | $21,754 |
| Year 4 | $24,000 | +$6,917 | $30,917 |
| Year 5 | $30,000 | +$11,243 | $41,243 |
| Year 6 | $36,000 | +$16,879 | $52,879 |
| Year 7 | $42,000 | +$23,989 | $65,989 |
| Year 8 | $48,000 | +$32,763 | $80,763 |
| Year 9 | $54,000 | +$43,411 | $97,411 |
| Year 10 | $60,000 | +$56,170 | $116,170 |
| Year 11 | $66,000 | +$71,307 | $137,307 |
| Year 12 | $72,000 | +$89,126 | $161,126 |
| Year 13 | $78,000 | +$109,966 | $187,966 |
| Year 14 | $84,000 | +$134,209 | $218,209 |
| Year 15 | $90,000 | +$162,288 | $252,288 |
The Power of Dollar Cost Averaging & Compounding
Investing regular amounts month after month harnesses the eighth wonder of the world: compounding. In early years, your personal contributions make up the bulk of your balance. But after 10 to 15 years, compound interest exponential curve takes over, and your annual investment earnings far surpass your personal contributions.
Why Step-Up Your SIP?
As your career progresses, your salary typically increases with inflation adjustments and promotions. Enabling a 5% to 10% annual step-up matches your rising earning power with increased wealth creation, shaving years off your retirement timeline.
Wealth Building Applications
- ✓Index Fund & ETF Dollar Cost Averaging
Automate monthly contributions into broad-market index funds (like S&P 500 or Total World ETF) and model long-term compound wealth.
- ✓Retirement Nest Egg & 401(k) / IRA Planning
Determine the future portfolio balance achieved by steady monthly contributions throughout your working career.
- ✓Children's College Tuition & Higher Education Fund
Calculate how a small monthly SIP initiated at birth can grow into a substantial college savings fund by age 18.
- ✓Wealth Generation with Annual Step-Up
Model how increasing your monthly investment by 5% or 10% each year with career promotions dramatically accelerates financial independence.
Why Use This SIP Calculator
Annual Step-Up Feature
Accurately models real-life salary growth by allowing annual percentage increases in monthly contributions.
Visual Capital vs Profit Breakdown
Interactive dual-color ratio bar displaying the percentage of total maturity value coming from principal vs compound interest.
Year-by-Year Growth Table
Full annual milestone audit displaying total cumulative contributions, annual interest gains, and ending portfolio balances.
Quick Wealth Scenarios
Pre-configured financial goals from 10-year starters to 30-year multi-million retirement milestones.
Frequently Asked Questions
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is an investment vehicle that allows you to invest a fixed sum of money at regular intervals (typically monthly) into mutual funds, ETFs, or stocks. In the US and Europe, this disciplined strategy is commonly known as Dollar Cost Averaging (DCA).
How does the SIP formula calculate returns?
The standard future value formula for an annuity due is used: M = P × ({[1 + i]^n - 1} / i) × (1 + i), where M is maturity amount, P is periodic monthly deposit, i is periodic interest rate (annual return / 12), and n is total number of monthly payments.
What are the advantages of SIP over lump-sum investing?
SIP eliminates the emotional stress of timing the market. By investing fixed amounts consistently, you buy more units when prices are down and fewer units when prices are high, lowering your average cost per share over the long run.
What is the impact of an annual step-up SIP?
A step-up SIP increases your monthly contribution by a chosen percentage (e.g., 5% or 10%) each year. Because compounding acts on a larger base each year, a step-up SIP can yield 40% to 70% higher terminal wealth compared to a fixed SIP over 20+ years.
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