SIP / Investment Return Calculator Guide: Formula & Worked Example
Short answer
Future value of a monthly SIP or regular investment plan. In the fixed example below, estimated value is 1,161,695.38. Your answer depends on the inputs and assumptions you choose.
Formula
FV = P × ((1+i)ⁿ − 1) / i × (1+i)
Use the relationship above with consistent units. The inputs are monthly investment, expected annual return, time period, annual step-up (optional). Use the input scale shown beside each field and keep time periods and units consistent. Only round the final result for display.
Worked example
- Monthly investment
- 5000
- Expected annual return
- 12
- Time period
- 10
- Annual step-up (optional)
- 0
- Estimated value: 1,161,695.38
- Invested amount: 600,000.00
- Estimated returns: 561,695.38
- Wealth gained: 93.62%
Understanding the result
Future value of a monthly SIP or regular investment plan. Start with the base example, then replace each value with the figure that matches your situation.
Monthly investment
The example uses 5000 for monthly investment. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
Expected annual return
The example uses 12 % for expected annual return. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
Time period
The example uses 10 years for time period. This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
Annual step-up (optional)
The example uses 0 % for annual step-up (optional). This is an illustration, not a recommended value. Keep the unit and time period shown by the field.
What the comparison means
The comparison changes only monthly investment, keeping every other example input fixed. This isolates that input's effect on the primary result. It does not predict future outcomes.
Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.
Comparison
| Scenario | Input | Result |
|---|---|---|
| Lower input | Monthly investment: 4000 | Estimated value: 929,356.31 |
| Base example | Monthly investment: 5000 | Estimated value: 1,161,695.38 |
| Higher input | Monthly investment: 6000 | Estimated value: 1,394,034.46 |
Common mistakes
- Using the wrong units for monthly investment.
- Comparing results while changing more than one input at a time.
- Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.
Checklist
- Confirm monthly investment.
- Confirm expected annual return is expressed in %.
- Confirm time period is expressed in years.
- Confirm annual step-up (optional) is expressed in %.
- Check the result against your source or provider.
Calculators Percentage Editorial Team
Calculator guides from the Calculators Percentage team. These introductory examples are educational, not professional advice.
Last reviewed:
Rates, fees, eligibility, local tax rules and provider rounding can change the final amount. Reference tax and exchange-rate data may be outdated; verify the official source before deciding.