Finvra Logo
Finvra

SIP & DCA Calculator

Calculate how small monthly contributions grow into a massive fortune using Compound Interest and Dollar Cost Averaging.

USA ($) Mode
$
5010K
0.1%20%
Years
1Y40Y

Future Value

$103,276
Invested Amount$60,000
Est. Wealth Gain$43,276

Wealth Breakdown

The Magic of Compounding

Albert Einstein famously called compound interest the "eighth wonder of the world." But how does it actually work for your savings?

Think of it like a snowball effect. When you invest, you earn interest on your money. The next year, you earn interest not just on your original cash, but also on the interest you earned previously. Over 10, 20, or 30 years, this cycle creates exponential wealth.

The Wealth Formula

FV = P × [ ((1 + r)n - 1) / r ] × (1 + r)

*Calculated as Annuity Due (Investment at start of month)

  • FV = Future Value
  • P = Monthly Investment Amount
  • n = Number of Payments (Months)
  • i = Monthly Interest Rate

Dollar Cost Averaging

By investing a fixed amount regularly, you buy more units when prices are low and fewer when prices are high, lowering your average cost.

Automated Discipline

Automating monthly transfers removes emotion from investing. By "saving before spending," you ensure consistent growth for your future.

Related Investment Tools

Lumpsum
One-Time Invest
Compound Interest
Growth Visualizer
Retirement
Plan Your Future
FD Calculator
Safe Returns

Frequently Asked Questions

What is SIP vs. Dollar Cost Averaging (DCA)?
They are essentially the same strategy. SIP (Systematic Investment Plan) is the common term in India, while DCA (Dollar Cost Averaging) is widely used in the USA, UK, and Europe. Both involve investing a fixed amount regularly to build wealth irrespective of market fluctuations.
How does this calculator predict my future wealth?
It uses the Compound Interest formula adjusted for monthly contributions. It calculates returns on your principal investment AND the accumulated interest, showing the exponential growth of your money over time.
Why is investing monthly better than timing the market?
Investing monthly utilizes 'Cost Averaging'. You buy more units when prices are low and fewer when prices are high. This lowers your average cost per share over time and removes the stress of trying to predict market peaks.
Does this work for S&P 500, FTSE, or Nifty?
Yes. The math of compounding is universal. Whether you invest in the S&P 500 (USA), FTSE 100 (UK), DAX (Germany), or Nifty 50 (India), this tool accurately projects your growth based on your expected rate of return.

Disclaimer: This tool is for educational purposes only. It calculates projections based on assumed rates of return. Investments are subject to market risks, and past performance does not guarantee future results.