Understanding your result
End-of-month deposits start earning in the following month; start-of-month deposits receive one additional month of modeled growth.
To model money invested once at the beginning with no later payments, use the Lumpsum Investment Calculator with the same return assumption and time horizon.
The formula
C is the fixed monthly contribution, r is the entered annual percentage divided by 100 and then by 12, and n is twelve times the number of years. For start-of-month installments, multiply the end-month result by (1 + r). At a zero rate, the value is C × n without division by r.
Worked example
For 1,000 contributed at each month-end for one year with a 12% nominal return divided monthly, the modeled value is about 12,682.50.
How to use this calculator
- Enter a fixed monthly investment and the annual return you want to model. The rate is a scenario, not a promised fund return.
- Choose a whole number of investment years; in the additional options, select whether installments arrive at the start or end of each month.
- Compare amount invested with modeled gain, then inspect year-end values in the chart or annual table.
Check the rate convention before comparing estimates
This calculator divides the entered nominal annual rate by twelve. A 12% input therefore means 1% per month, which compounds to about 12.68% over a full year for money already invested. A calculator treating 12% as an effective annual return uses a smaller monthly rate and can show a different value.
The projection does not simulate fund purchases
The model grows a balance at one fixed monthly rate. It does not buy units at changing net asset values or reproduce the sequence of actual market returns. Regular investing does not assure a profit or protect against loss. To understand how the assumption affects the projection, compare several rates while keeping contributions and timing unchanged.
Assumptions & limitations
What this calculation assumes
- Constant annual return divided monthly.
- Fixed installment with no missed months.
- No fees, taxes, or withdrawals.
What to keep in mind
- A smooth return is hypothetical.
- Fund values can fall and actual SIP dates vary.
- This is not an investment recommendation.
Common questions
Is SIP India-only terminology?
SIP is common in India, but the underlying fixed periodic investment method is general.
Does a SIP guarantee returns?
No. The rate is a scenario and market investments can lose value.
Why does installment timing matter?
Start-of-month money is modeled for one additional month.