Monthly Savings (SIP) Calculator
The future value of a regular monthly investment with compound growth.
Result
Future value
9,147,302
Total invested
6,000,000
Interest earned
3,147,302
How it works
A monthly savings plan (often called a SIP) invests a fixed amount every month and lets compounding do the rest. The future value follows the annuity formula FV = payment × ((1+i)ⁿ − 1) ÷ i, where i is the monthly rate and n the number of payments. The growth is startling because time does the heavy lifting. Saving 100 a month for 20 years at 8% annual puts in 24,000 of your own money and returns roughly 59,000 — more than half the final sum is interest on interest, not deposits. Two levers dominate, and they are not equal: duration beats amount. Starting ten years earlier usually outperforms doubling the monthly payment, because the earliest deposits are the ones with the most time to compound. Note the calculation assumes a constant return; real markets fluctuate, so treat the result as a long-term projection, not a promise.
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Frequently asked questions
What is a SIP?
A systematic investment plan — you invest the same amount on a regular schedule rather than a lump sum.
Why does it grow so fast?
Each month’s returns earn their own returns; over years this compounding far exceeds what you put in.
What matters more, saving longer or saving more each month?
Duration, usually by a wide margin. The earliest payments compound the longest, so starting ten years sooner often beats doubling the monthly amount later.
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