Start with the goal
Define the target amount and time horizon first, then work backwards to estimate the monthly investment required.
Money Tools · Investing
SIP Calculator
See how a monthly mutual fund SIP compounds over time. Enter your monthly amount, expected return and duration to instantly project your invested capital, wealth gained and maturity value.
Investment details
SIP
Ledger
Ledger
Entry No. 01 — Maturity value
₹25.2 L
estimated value at the end of tenure
Total invested amount₹9,00,000
Estimated wealth gained₹16,23,000
Total instalments180
Projection assumes a constant annual return compounded monthly. Actual mutual fund returns vary with the market.
Build a realistic plan
Choosing SIP amount, return and duration
A useful SIP projection starts with an amount you can continue through both strong and weak markets. Expected return is only an assumption, so avoid treating the maturity value as a promise. Testing conservative, moderate and optimistic return scenarios gives you a more practical range for goal planning.
Allow for inflation
A goal that costs ₹10 lakh today may require a much larger corpus after ten or fifteen years.
Review annually
Revisit the SIP after salary changes, major expenses or changes in the time remaining to your goal.
Long-term investors may also consider a step-up SIP, where the monthly contribution rises each year. Increasing contributions as income grows can reduce dependence on high return assumptions and make the investment plan more resilient.
How it works
How to use the SIP calculator
Enter your monthly SIP amount
The amount you can commit to investing every month, without disrupting other financial goals.
Enter the expected annual return
Equity mutual funds have historically returned 10–14% annually over long horizons; hybrid and debt funds usually deliver lower, steadier returns.
Enter your investment duration
Longer durations let compounding do more of the work — even modest monthly amounts can grow substantially over 15–20 years.
Read your maturity value
See your total invested capital versus the estimated wealth gained, plus a visual comparison chart.
Understanding SIP
How SIP returns are calculated
A Systematic Investment Plan (SIP) invests a fixed sum into a mutual fund scheme at regular intervals — most commonly monthly. Each instalment buys fund units at that day's Net Asset Value (NAV), so you naturally buy more units when prices are low and fewer when prices are high. This is called rupee cost averaging, and it smooths out the impact of market volatility over time.
The maturity value of a SIP is projected using the future value of a growing annuity formula:
| Symbol | Meaning |
|---|---|
| P | Fixed amount invested every month |
| i | Monthly rate of return (annual return ÷ 12 ÷ 100) |
| n | Total number of monthly instalments |
Future Value = P × [((1 + i)n − 1) ÷ i] × (1 + i)
Why compounding rewards patience
- In the first few years, returns roughly track your contributions — the real growth shows up after year 7–10.
- Increasing your SIP amount annually (a "step‑up SIP") in line with your income can meaningfully shorten the time needed to hit a target corpus.
- Staying invested through market corrections, rather than pausing your SIP, is usually what long‑term investors are rewarded for.
FAQ
Frequently asked questions
What is a SIP?
A Systematic Investment Plan lets you invest a fixed amount in a mutual fund at regular intervals, usually monthly, rather than investing a lump sum at once.
What formula does this calculator use?
Future Value = P × [((1+i)n − 1) ÷ i] × (1+i), the standard future value of a growing annuity formula used for SIP projections.
What return rate should I use?
Diversified equity mutual funds in India have historically delivered 10–14% annualised returns over long periods, though this is not guaranteed. Use a conservative estimate for planning.
Is SIP better than investing a lump sum?
SIP averages your purchase cost across market cycles and builds discipline, which suits most salaried investors. A lump sum can outperform in a rising market but carries higher timing risk.
Are the returns from this calculator guaranteed?
No — this is a projection based on an assumed constant annual return. Actual mutual fund returns are market‑linked and will fluctuate year to year.
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