About the SIP Calculator
Tezmy's SIP Calculator shows what a Systematic Investment Plan (SIP) could grow to. Enter how much you invest each month, the yearly return you expect and how many years you plan to invest. It shows the estimated final value, how much you put in and how much came from returns, with a year-by-year table. Add a yearly step-up to see the effect of raising your SIP as your income grows, switch to Lump sum for a one-time investment, and add inflation to see what the final amount is worth in today's money. It works with any currency. Results are estimates at a fixed rate; real market returns go up and down.
Updated October 2026
How to use the SIP Calculator
- 1Choose Monthly SIP or Lump sum.
- 2Enter the amount, the expected yearly return and the number of years.
- 3Optionally add a yearly step-up and an inflation rate.
- 4Read the estimated value, total invested and returns, and the year-by-year table.
Understanding the results
- Total invested: everything you put in over the period.
- Estimated returns: the growth on top, from compounding.
- Estimated value: invested plus returns at the end of the period.
- The bar shows how much of the final value came from you and how much from growth; the longer you invest, the bigger the growth part.
The power of starting early
Compounding rewards time more than amount. At 12% a year, £500 a month for 10 years (£60,000 invested) grows to about £116,000, but the same SIP for 20 years (£120,000 invested) grows to about £500,000. Doubling the time more than quadruples the result. Try it yourself by changing only the years.
Planning a goal
- Work out the goal in today's money, such as a child's education or a house deposit.
- Add inflation to see how the goal grows by the time you need it.
- Adjust the monthly amount until the value in today's money meets the goal.
- Use a step-up so the SIP grows with your income instead of starting too high.
- Review once a year and increase the SIP if you can.
Related calculators
For a savings account or fixed deposit with regular interest, the Compound Interest Calculator shows the growth year by year. If you are paying off a loan instead, the Loan Calculator works out the monthly EMI and total interest. For one big deposit, use the Compound Interest Calculator, and for a loan against it the Loan Calculator. To see what you can afford each month, the Salary Calculator and Percentage Calculator help with the budget.
Features
- Monthly SIP and one-time lump sum
- Step-up SIP (raise the amount every year)
- Year-by-year table
- Invested vs returns bar
- Value in today's money after inflation
- Any currency, £ by default
- Private: everything is worked out in your browser
Frequently asked questions
How is SIP return calculated?
Each monthly instalment is invested at the start of the month and grows at the yearly rate divided by 12, compounded every month. Without a step-up that is the standard formula FV = P × ((1 + i)ⁿ − 1) ÷ i × (1 + i), where P is the monthly amount, i the monthly rate and n the number of months.
What return should I expect from a SIP?
Nobody knows future returns. Many people use 10–12% a year for long-term equity funds, 6–8% for debt funds and lower for very safe options, based on past averages. Try a cautious and an optimistic rate to see a range instead of one number.
What is a step-up SIP?
A step-up (or top-up) SIP raises your monthly amount by a fixed percentage every year, for example 10%, usually in line with salary increases. Even small yearly increases make a large difference over 15–20 years, and the table shows each year's monthly amount.
SIP or lump sum: which is better?
A lump sum has more time in the market, so it can grow more if prices rise steadily. A SIP spreads your buying over time, which averages out ups and downs and suits a monthly salary. Use both modes here to compare the same total amount.
Why does inflation matter?
Prices rise every year, so a large amount in 20 years buys less than it would today. Enter an inflation rate (for example 5–6%) to see the final value in today's money, which is more useful for planning goals like education or retirement.
Is the result guaranteed?
No. The calculator assumes the same return every year, which never happens in real markets. Mutual fund investments are subject to market risks; read the scheme documents and speak to a registered adviser before you invest.