Test a recurring-contribution scenario.
Set a monthly amount, duration, annual rate and optional yearly contribution change. The calculator applies those inputs mechanically; it does not select a fund or predict a return.
What this calculator does
This is a recurring-cash-flow model, not a mutual-fund return model. It adds one contribution at the end of every month, applies one constant monthly rate to the existing balance, and can increase the contribution after each completed year. At 0%, the result equals total contributions.
How the calculation works
The entered annual rate is divided by 12, so it is treated as a nominal annual rate with monthly compounding. For example, 12% becomes 1% per month; this is not the same convention as a 12% effective annual return. The contribution enters after that month's growth, and a step-up takes effect only after 12 contributions.
No market figure in the ticker affects the result. The model omits variable returns, NAV timing, loads, management fees, taxes, withholding, distributions, missed contributions and withdrawal restrictions. A product's actual cash flows must be reconstructed from its statements and terms.
How to read the numbers
- Scenario value is nominal. The tool does not calculate purchasing power because it has no matched future inflation path.
- Total contributions include step-ups. When the step-up is nonzero, later monthly contributions are larger than the starting input.
- Change versus contributions can be negative. A negative annual-rate assumption can produce a value below the money contributed.
- The smooth line is artificial. A constant monthly rate cannot represent the sequence risk and volatility of a market-linked product.
Reproducible checks
At a 0% annual rate and 0% step-up, PKR 10,000 per month for 10 years must produce PKR 1,200,000: 120 contributions multiplied by PKR 10,000. At 0% with a 10% yearly step-up, the first 12 contributions are PKR 10,000 each, the next 12 are PKR 11,000 each, and so on. These cases let a reader verify the contribution timing before testing any nonzero rate.
For a nonzero rate, the first contribution receives one fewer month of growth than it would in a beginning-of-month convention. A spreadsheet or provider illustration can therefore differ even when both use the same annual percentage. Confirm timing and rate convention before comparing outputs.
What it cannot compare
This tool cannot compare a lump sum with monthly contributions under actual market paths. That question depends on the sequence of returns, available dates, transaction costs and whether the money existed at the start. A constant-rate curve erases all of those differences.
A SIP is an instruction, not an asset class
A recurring instruction can buy units in products with very different risks, fees and redemption rules. The calculator does not know the underlying asset, provider or Shariah classification. Use the mutual-fund guide to locate SECP, MUFAP and provider documents, and the money-market comparison to distinguish fund units from bank deposits.