Deposits and projected SIP growth
End-of-month deposits start earning in the following month; start-of-month deposits receive one additional month of modeled growth. Monthly investment used is the entered payment or goal contribution rounded upward to the next cent. The goal projection uses that rounded payment and may exceed the target slightly. Implied annual growth shows the rate obtained by compounding the monthly factor twelve times.
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 and n is twelve times the whole years. With a nominal quote, monthly r = annual percentage ÷ 100 ÷ 12. With an effective annual quote, r = (1 + annual percentage ÷ 100)^(1/12) − 1. Start-month installments receive one extra month of growth. At zero return, value is C × n. Goal mode divides the target by the accumulated value of one unit per month, then rounds the payment upward to cents.
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
- Choose Future value or Monthly investment, then enter the payment or nominal future goal.
- Enter whole investment years and an annual return scenario. Select the nominal/effective quote convention and, in additional options, monthly installment timing.
- Review the live projection, monthly amount used and implied annual growth; compare invested amounts and gains in the annual table or chart.
Check the rate convention before comparing estimates
Nominal divided-monthly is the default: a 12% quote gives 1% per month and approximately 12.68% full-year growth. Effective annual growth converts a 12% quote to about 0.9489% per month so a balance held for twelve months grows by 12%. Select the same convention before comparing two tools.
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
- One constant nominal or effective annual growth assumption converted to monthly periods.
- 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.
How can I find the monthly SIP needed for a goal?
Choose Monthly investment and enter the nominal future target. The required contribution uses the selected timing and return convention, rounds upward to cents and is projected again using that rounded amount. No initial lump sum is included.
Why do two SIP calculators show different values at the same annual rate?
One may divide a nominal rate by twelve while another converts an effective annual rate. Start-month versus end-month timing also changes the result. Use the quote convention and timing controls to compare the same assumptions.
Sources & further reading
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