Compound Interest & SIP Calculator
See the exponential power of compounding your money.
Compound Interest & SIP Projection
Model fixed monthly contributions using an assumed constant rate; actual investment returns vary.
Projected Balance
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What This Calculator Does
The Compound Interest & SIP Calculator projects a fixed-rate scenario with an initial deposit and regular month-end contributions. Use it to explore contribution schedules; it does not predict mutual-fund performance or guarantee a return.
How It Works
Future value is computed with the compound growth formula FV = P x (1 + r/n)^(nt) for the principal, plus an annuity term for monthly contributions. The tool subtracts total deposits from the final balance to isolate interest earned.
Example
Start with R5,000, add R250 at the end of each month, and assume an 8% nominal annual rate compounded monthly for 10 years. The estimate is about R56,835, including roughly R21,835 in growth before tax, fees, and inflation.
Formula
FV = P × (1 + r/n)^(n × t)P = principal, r = annual rate, n = compounds per year, t = years.
FV = PMT × ((1 + r/12)^(12t) − 1) / (r/12)Reading the Results
Projected Balance
The sum of compounded principal and compounded monthly contributions at the end of the horizon.
Total Compound Growth
Interest earned on top of everything you deposited. It shows how much of the ending balance came from growth rather than savings.
Frequently Asked Questions
How often is interest compounded?
The estimate uses a nominal annual rate divided into monthly periods, with deposits assumed at the end of each month. Actual account and investment terms may differ.
Is this a guaranteed investment return?
No. The rate is an assumption for a mathematical projection. Investment returns vary and can be negative; savings rates and account terms can also change.
Does this account for inflation, taxes, or fees?
No. The result is a nominal estimate and excludes taxes, fees, inflation, and any changes to the rate or contribution amount.
Can I use this for a SIP estimate?
You can model a fixed monthly contribution at an assumed constant rate. Actual SIP investments can have variable or negative returns, and fund expenses, taxes, and timing are not modeled.