Investment / SIP (DCA) Calculator

About the SIP / DCA calculator

This tool models long-term investing with two levers: a one-time lump sum and a recurring deposit. You pick how often returns are compounded, when deposits hit (beginning or end of each period), and whether to adjust results for inflation. Behind the scenes we run the same math you’d build into a spreadsheet: compounding per period, contributions layered at your chosen timing, and an optional annual step-up to your deposit. Results show the final balance, your total contributions, and the growth that bridges the two. A yearly table helps you see how momentum builds.

How to use

1. Enter the starting amount. This is the cash you invest on day one.
2. Set an average annual return. Use a conservative long-run estimate. Markets are bumpy; this is a smooth average.
3. Add a recurring deposit. This is your SIP/DCA amount. Monthly is common, but you can choose any frequency via “Compounding” and we’ll align deposits to that cadence.
4. Pick timing. Depositing at the beginning of the period compounds a bit more than at the end.
5. Inflation and step-ups (optional). Enter an inflation rate to see “real” dollars, and add an annual % increase to model raises or discipline.
6. Calculate, scan the metrics, and export CSV. Use the chart to sense the curve, and the table to see year-by-year progress.

Reading the results

Final balance is the end value in nominal dollars. Total contributions sums your deposits across all periods. Total growth is the gain from compounding plus any timing benefit from depositing at the start of the period. If you added inflation, we deflate each year’s ending balance by \((1 + \text{inflation})^{\text{years}}\) to show a “real” value you can compare across time.

Contribution timing matters. Annuity-due (beginning) effectively gives each deposit one extra period of growth versus ordinary annuity (end). On long horizons the difference is noticeable, but the real driver is consistency: keep contributing through cycles. If you’re mainly comparing interest mechanics, try the Compound Interest Calculator. Planning for retirement? See the Retirement Savings Calculator. Estimating taxes on sales, check the Capital Gains Tax Calculator.

FAQ

Does the calculator assume constant returns? Yes. It uses an average return per period. Real markets vary, but this is still useful for planning and comparing scenarios.

What if I want quarterly deposits but monthly compounding? Set compounding to monthly and enter your deposit as a monthly equivalent. The math uses that per-period contribution.

How is the inflation adjustment applied? We deflate the end-of-year balance by the compound inflation factor. That gives a clearer sense of purchasing power.

Can I model contribution increases mid-year? This model steps up once per year. For more granularity, export to CSV and tweak in your spreadsheet.

Heads-up: none of this is investment advice. It’s a planning tool to help you reason about trade-offs.