About the Paktools SIP Calculator
A Systematic Investment Plan (SIP) is one of the simplest and most disciplined ways to build long-term wealth in Pakistan. Instead of investing a large lump sum, you invest a fixed amount every month into a mutual fund — equity, Islamic, money market or balanced — and let the power of compounding do the heavy lifting. The Paktools SIP Calculator helps you estimate, in seconds, how much your monthly investment could grow into over the years.
How to use this SIP Calculator
Enter your monthly investment amount (for example Rs 5,000 or Rs 25,000), the expected annual return rate of the fund (typical Pakistani equity funds have historically delivered 12–18% per year, while money market and Islamic income funds offer more conservative returns), and the number of years you plan to stay invested. The calculator instantly shows your maturity value, the total amount you have invested and the wealth you have gained on top of your contributions.
SIP formula used
We use the standard future value of an annuity-due formula: FV = P × [((1 + i)ⁿ − 1) / i] × (1 + i), where P is the monthly amount, i is the monthly interest rate (annual rate ÷ 12) and n is the total number of months. This is the same calculation used by leading Pakistani AMCs like Al Meezan, UBL Funds, MCB-Arif Habib, NBP Funds and HBL Asset Management.
Why start a SIP in Pakistan?
Inflation in Pakistan has averaged double digits in recent years, which means money sitting idle in a savings account quickly loses purchasing power. A SIP into a growth-oriented mutual fund gives you a realistic chance to beat inflation, build a retirement corpus, save for your child's education, plan for Hajj, or accumulate a down payment for a home — all without timing the market.
Tips to get the most from your SIP
- Start as early as possible — even Rs 1,000 a month for 20 years compounds significantly.
- Increase your SIP amount whenever your salary increases (a "step-up SIP").
- Stay invested through market dips — that is when SIP units are bought cheapest.
- Pick a fund that matches your risk profile and investment horizon.
- Review your portfolio once a year, not every week.
Want to plan the rest of your finances too? Use our Loan / EMI Calculator to size a car or home loan, our FBR Salary Tax Calculator to estimate your take-home pay, the PKR Currency Converter for live foreign exchange rates, the Gold Price Calculator to track gold investments, or the Age Calculator to plan retirement milestones — all free on Paktools.
Disclaimer: SIP returns are not guaranteed and depend on actual fund performance. This calculator provides indicative estimates only. Read the fund's offering document and consult a SECP-licensed advisor before investing.