Systematic Investment Plan (SIP) Calculator

Calculate your Systematic Investment Plan returns and plan your mutual fund investments

SIP Investment Calculator

Monthly Investment Amount

Minimum $50 per month

Expected Annual Return

Live from Federal Reserve (Live RSS when available): 8.35% expected return based on current rates (updated 2025-07-26)

Investment Period

Years

Long-term investing recommended

Central Bank Rates vs Investment Returns

Fed (Federal Reserve) rate: 4.33% - this is the US central bank's federal funds rate that sets the baseline for all American interest rates. However, equity funds target 8-12% (avg 10% from S&P 500). US stock investments target returns well above the Fed rate and Treasury bond yields, compensating investors for market volatility and long-term wealth creation through equity growth.

Investment Disclaimer: Past performance does not guarantee future returns. Investment values can go down as well as up. Fund fees and market conditions significantly impact actual returns. Please read fund prospectus before investing.

Understanding SIP (Systematic Investment Plan)

A Systematic Investment Plan (SIP) is a disciplined investment approach where you invest a fixed amount regularly in mutual funds. It's one of the most effective ways to build wealth over time through the power of compounding.

Benefits of SIP:

Dollar Cost Averaging: Reduces the impact of market volatility
401(k) Benefits: Employer matching and tax advantages
IRA Options: Traditional and Roth IRA for retirement savings
Flexibility: Start with as little as $50 per month
Disciplined Investing: Encourages regular investment habit
Compounding Power: Your returns generate their own returns

How SIP Works:

When you invest through SIP, you buy more units when prices are low and fewer units when prices are high. This averaging effect helps reduce the overall cost of investment and potentially increases returns over time.

US Investment Platforms

Major US Platforms

Vanguard - $0 commissions, low ER
Fidelity - $0 commissions
Charles Schwab - $0 stock/ETF trades
TD Ameritrade - $0 commissions

Current USD Fund Performance (July 2025)

S&P 500 Index: 10.2% annual avg (10yr track record)
Total Stock Market: 9.8% annual avg
401k Limit: $23,500 (2025 limit)
SEC Investor.gov

SIP Investment Tips (July 2025)

Start with diversified index funds for lower risk. Historical data shows consistent 8-12% annual returns over 10+ year periods. Platform fees and expense ratios significantly impact long-term returns - choose low-cost providers. All performance data is based on historical 10-year track records ending July 2025.