{
  "id": "sip",
  "version": "f6d17f65676f",
  "status": "published",
  "name": "SIP Calculator",
  "question": "What will my SIP be worth?",
  "summary": "Computes the maturity value of a monthly SIP (systematic investment plan) in rupees at an expected yearly return, with an optional yearly step-up.",
  "category": "finance",
  "subcategory": "india",
  "url": "https://www.acalculator.org/finance/sip-calculator",
  "markdown": "https://www.acalculator.org/finance/sip-calculator.md",
  "kind": "schedule",
  "method": "FV = P × ((1 + i)^n − 1) ÷ i × (1 + i), with P the monthly investment, i the yearly return ÷ 12, and n the number of months; worked month by month, with a step-up raising P each year.",
  "assumptions": [
    "The return stays the same every month. Mutual fund returns go up and down.",
    "The monthly rate is the yearly return divided by 12, as most SIP calculators use.",
    "Each instalment is invested at the start of its month.",
    "Exit loads, expense ratios already in the return, and taxes are not included.",
    "This is an estimate for planning, not financial advice."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "amount": {
        "title": "Monthly investment (₹)",
        "description": "The amount in rupees invested at the start of every month.",
        "type": "number",
        "exclusiveMinimum": 0,
        "maximum": 100000000
      },
      "rate": {
        "title": "Expected return a year",
        "description": "The expected yearly return. The monthly rate is this divided by 12.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 50
      },
      "years": {
        "title": "For how long? (years)",
        "description": "How many years you invest every month.",
        "type": "integer",
        "minimum": 1,
        "maximum": 50
      },
      "stepup": {
        "title": "Step up each year by",
        "description": "The percent the monthly investment goes up at the start of each new year (a step-up or top-up SIP).",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 50
      }
    }
  },
  "outputs": {
    "value": {
      "label": "Maturity value (₹)",
      "description": "The value at the end of the last month.",
      "format": "number"
    },
    "invested": {
      "label": "Amount invested (₹)",
      "description": "Every monthly investment added up.",
      "format": "number"
    },
    "returns": {
      "label": "Estimated returns (₹)",
      "description": "The maturity value minus the amount invested.",
      "format": "number"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "amount": 10000,
      "rate": 12,
      "years": 10,
      "stepup": 0
    },
    "outputs": {
      "value": 2323390.7635194003,
      "invested": 1200000,
      "returns": 1123390.7635194003
    },
    "text": "Investing ₹10,000 a month at 12% for 10 years grows to ₹2,323,391, of which ₹1,123,391 is returns."
  },
  "examples": [
    {
      "given": {
        "amount": 1000,
        "rate": 8,
        "years": 25
      },
      "expect": {
        "value": 957366.570524632,
        "invested": 300000
      },
      "source": "AMFI (amfiindia.com, SIP page): ₹1,000 a month at 8% for 25 years gives ₹9.57 lakh; full value from the formula in content.mdx"
    },
    {
      "given": {
        "amount": 5000,
        "rate": 12,
        "years": 10
      },
      "expect": {
        "value": 1161695.3817597027,
        "invested": 600000,
        "returns": 561695.3817597027
      },
      "source": "hand calculation in content.mdx: 5,000 × (1.01^120 − 1) ÷ 0.01 × 1.01"
    },
    {
      "given": {
        "amount": 1000,
        "rate": 0,
        "years": 2,
        "stepup": 10
      },
      "expect": {
        "value": 25200,
        "invested": 25200,
        "returns": 0
      },
      "source": "hand calculation in content.mdx: 12 × 1,000 + 12 × 1,100"
    },
    {
      "given": {
        "amount": 1000,
        "rate": 12,
        "years": 2,
        "stepup": 10
      },
      "expect": {
        "value": 28524.132306056257,
        "invested": 25200
      },
      "source": "hand calculation in content.mdx: year 1 grows 12 more months, year 2 is 1.1 times year 1"
    }
  ],
  "sources": [
    "Association of Mutual Funds in India (AMFI), Systematic Investment Plan (SIP): definition, rupee cost averaging, and the example of ₹1,000 a month at 8% for 25 years giving ₹9.57 lakh. https://www.amfiindia.com/investor/become-mf-distributor?zoneName=sip",
    "AMFI, Mutual Funds Sahi Hai: What is a systematic investment plan? https://www.mutualfundssahihai.com/en/what-systematic-investment-plan-sip",
    "Future value of an annuity due: S. A. Broverman, Mathematics of Investment and Credit, chapter 2."
  ],
  "related": [
    "investment",
    "compound-interest",
    "future-value"
  ],
  "changelog": []
}