📈 Compound Interest & SIP Calculator

How to Use the Compound Interest Calculator

1. Enter the amount you are starting with — enter zero if you are starting from scratch.
2. Add how much you plan to invest each month (this is the SIP amount).
3. Enter the annual return you expect as a percentage.
4. Set how many years you will keep investing.
5. Optionally enter an inflation rate to see what the final amount is worth in today's money.
6. Click Show Year-by-Year to see exactly when growth starts to outpace contributions.

What makes compound interest powerful?

Compounding means your returns start generating returns of their own. In the early years growth looks unremarkable, because the balance is small. The curve steepens later: in a typical 15-year plan, more is added in the final three years than in the first eight combined. This is why starting earlier matters far more than investing more — time is the input the formula rewards most.

What is a SIP?

A Systematic Investment Plan is simply a fixed amount invested at regular intervals rather than a single lump sum. Two things make it useful: it removes the need to time the market, and it averages your purchase price across highs and lows. Enter your monthly amount in the contribution field and leave the starting amount at zero to model a pure SIP.

What return rate should I assume?

Be conservative. Historically, broad stock market indices have returned roughly 7-10% a year over long periods before inflation, but individual years swing wildly and past performance guarantees nothing. Savings accounts and fixed deposits typically return far less. Running the calculation at a rate two or three points lower than you hope for shows you whether the plan still works if markets disappoint.

Why should I adjust for inflation?

Because a fixed amount buys less over time. At 6% inflation, money halves in purchasing power roughly every twelve years, so a portfolio worth a million in thirty years might buy what about 170,000 buys today. Entering an inflation rate shows the real, spendable value of your final figure, which is the number that actually determines whether you can retire on it.

Is this financial advice?

No. This is a mathematical projection based on the numbers you enter, not a recommendation. Real investments carry risk, fees and tax that this calculator does not model, and returns are never guaranteed. Speak to a qualified financial adviser before making decisions about your money.