SIP Calculator
SYSTEMATIC INVESTMENT PLAN
YOUR SIP JAR AFTER 15 YEARS
It holds
Rs 14,130,178
1.41 crore
Your money grows 3.1×
MILESTONES ON THE WAY
A crorepati in year 13
- Rs 10 lakhYear 3
- Rs 25 lakhYear 6
- Rs 50 lakhYear 9
- Rs 1 croreYear 13
- Rs 5 croreif you keep goingYear 24
Waiting 5 years costs Rs 7,897,870
Start 5 years later and invest for 10 years: you would have Rs 6,232,308, before any tax.
A 10% yearly step-up adds Rs 9,725,189
Raise the monthly amount 10% each year, in step with your increment, and the jar reaches Rs 23,855,367.
How the jar fills, year by year
- Money put in
- Growth
How the SIP calculator works
You choose a monthly amount, an expected yearly return and a period. The calculator invests your instalment at the start of each month, grows the whole balance by one month of return, and repeats until the end. Every rupee you add therefore compounds for exactly as long as it stays invested.
- P
- monthly instalment
- i
- monthly return = (1 + annual return)^(1/12) − 1
- n
- number of months
The formula above is the level-instalment case. With a step-up, a starting lump sum or month-end investing, the calculator runs the same month-by-month loop instead of a single formula, so every option is handled exactly.
A worked example
Investing Rs 20,000 a month for 10 years at 14% a year puts in Rs 2,400,000 and grows to about Rs 4,985,846. Raising the instalment by 10% every year instead grows to about Rs 7,177,367 from Rs 3,824,982 invested.
| Plan | Total invested | Value after 10 years | Gains |
|---|---|---|---|
| Rs 20,000 a month | Rs 2,400,000 | Rs 4,985,846 | Rs 2,585,846 |
| Rs 20,000, stepping up 10% a year | Rs 3,824,982 | Rs 7,177,367 | Rs 3,352,385 |
Choosing a realistic return
No return is guaranteed. Money market and income funds in Pakistan broadly follow the State Bank policy rate, so their returns fall when rates are cut. Equity funds and direct PSX investing have delivered higher long-run averages with deep losses along the way. A sensible approach is to run three cases (cautious, middle, optimistic) and plan around the middle one.
Compare your assumption with what the market actually did using the KSE-100 return calculator, and add inflation under More options to see the value in today's rupees. To work backwards from a target amount, use the goal planner.
Already investing every month? The XIRR calculator turns your dated deposits into the yearly return you really earned. To see what one amount invested in one go would do instead, use the lumpsum calculator.
Sources and assumptions
- Calculation: month-by-month compounding of each instalment (annuity due by default)
- Inflation-adjusted value: final value ÷ (1 + inflation)^years
Results are estimates for information and planning only, not tax, legal or investment advice. Check your own case with a tax adviser, your broker or the official source before acting.
FAQ
SIP Calculator: common questions
What is a SIP in Pakistan?+
A SIP (systematic investment plan) means investing a fixed amount every month instead of a single large sum. In Pakistan you can do it through a mutual fund's monthly investment plan, a Voluntary Pension System account, or by buying PSX shares through your broker each month.
How is the SIP value calculated?+
Each monthly instalment grows from the month it is invested until the end of the period. The calculator adds every instalment and its growth month by month: value = value × (1 + monthly return) after each deposit. With a 14% yearly return, the monthly return is 1.14^(1/12) − 1, about 1.10%.
What return should I assume?+
Use a long-run average, not one good year. Pakistani money market and income funds have tracked the policy rate, while equity funds and the KSE-100 have swung widely from year to year. Try a cautious, a middle and an optimistic rate to see the range.
What is a step-up SIP?+
A step-up SIP raises your monthly instalment by a fixed percentage once a year, usually in line with your salary increment. Even a 10% yearly step-up can add a large amount to the final value because the bigger later instalments also compound.
Is SIP better than a lump sum?+
If the market rises steadily, a lump sum invested early grows more because all the money is invested from day one. A SIP spreads your entry over many prices (rupee cost averaging), lowers the risk of investing everything at a peak, and fits a monthly salary.
Are SIP returns taxed in Pakistan?+
Gains on mutual fund units are taxed as capital gains when you redeem, and dividends are taxed when paid. Rates depend on the fund type and your filer status. Add a tax rate under More options, and use the capital gains tax calculator to find yours.
Keep going
Related tools
Lumpsum Investment Calculator
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Goal Planner
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Compound Interest Calculator
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SWP Calculator
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Inflation Calculator Pakistan
What rupees from any year are worth today, from Pakistan's CPI history.
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