SIP
Future value of a monthly SIP.
Inputs
Final corpus
50,45,760
15 y · 12.0% p.a. · monthly compounding
Formula
M = P × ({(1+i)^n − 1} / i) × (1+i)Assumptions
- P = monthly instalment, paid at start of each month (annuity-due).
- i = annual rate ÷ 12. Compounding is monthly.
- n = total months = years × 12.
- Returns are nominal — pre-inflation, pre-expense-ratio, pre-tax.
- Equity returns vary year to year; constant-rate is a teaching assumption, not a prediction.
- Edge case: when i = 0, FV reduces to P × n.
Year-by-year ledger
| Year | Opening | Invested | Interest | Closing |
|---|---|---|---|---|
| 1 | 0 | 1,20,000 | 8,093 | 1,28,093 |
| 2 | 1,28,093 | 1,20,000 | 24,339 | 2,72,432 |
| 3 | 2,72,432 | 1,20,000 | 42,644 | 4,35,076 |
| 4 | 4,35,076 | 1,20,000 | 63,272 | 6,18,348 |
| 5 | 6,18,348 | 1,20,000 | 86,516 | 8,24,864 |
| 6 | 8,24,864 | 1,20,000 | 1,12,706 | 10,57,570 |
| 7 | 10,57,570 | 1,20,000 | 1,42,220 | 13,19,790 |
| 8 | 13,19,790 | 1,20,000 | 1,75,476 | 16,15,266 |
| 9 | 16,15,266 | 1,20,000 | 2,12,949 | 19,48,215 |
| 10 | 19,48,215 | 1,20,000 | 2,55,176 | 23,23,391 |
| 11 | 23,23,391 | 1,20,000 | 3,02,757 | 27,46,148 |
| 12 | 27,46,148 | 1,20,000 | 3,56,374 | 32,22,522 |
| 13 | 32,22,522 | 1,20,000 | 4,16,789 | 37,59,311 |
| 14 | 37,59,311 | 1,20,000 | 4,84,869 | 43,64,180 |
| 15 | 43,64,180 | 1,20,000 | 5,61,580 | 50,45,760 |
| Total | 18,00,000 | 32,45,760 | 50,45,760 |