SIP Investment Growth
Yearly Investment Growth
| Year | Invested (₹) | Returns (₹) | Total Value (₹) | CAGR (%) |
|---|
Beginning-of-Month vs End-of-Month SIP: Why It Matters
When you use a SIP (Systematic Investment Plan) calculator, you might notice that the final amount sometimes differs slightly between tools — even with the same monthly amount, period, and expected return. Why? It comes down to when the investment is assumed to happen: at the beginning or end of each month.
Let's break it down with a simple example:
- Monthly SIP amount: ₹5,000
- Investment duration: 1 year (12 months)
- Expected annual return: 12%
Here's how the numbers look:
| Metric | Beginning-of-Month (Accurate) | End-of-Month (Adjusted) |
|---|---|---|
| Expected Amount | ₹64,047 | ₹63,412 |
| Wealth Gain | ₹4,047 | ₹3,412 |
Which Should You Use?
→ Stick with beginning-of-month if you want the calculation to match how SIPs actually work — money goes in at the start of each month and grows from day one.
→ Some websites assume end-of-month investing by default. That's fine too, but it slightly underestimates your returns.
So, don't worry if you see a small difference — your money does start working immediately!
💡 Tip: Always check how your SIP tool works — and if you're using the Grow SIP Calculator, it uses the more realistic beginning-of-month method by default.
