SIP Calculator
Project the future value of a fixed monthly SIP (Systematic Investment Plan) in a mutual fund, from your monthly contribution, expected annual return, and investment period.
- 1Enter your fixed monthly SIP contribution amount
- 2Enter the expected annual rate of return
- 3Enter the investment period in years
- 4Click Calculate to see total invested, estimated value, and returns
What the SIP calculator estimates
A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund every month. This calculator projects the value of those contributions at the end of your chosen period, given an assumed annual return. It reports three figures: the total you invested, the estimated final value, and the estimated gain (the difference).
The formula in plain terms
Future value = P × [((1 + i)n − 1) / i] × (1 + i)
Here P is the monthly amount, i is the monthly rate (the annual rate divided by 12) and n is the number of months. The final (1 + i) multiplier means each instalment is assumed to be invested at the start of its month. The calculator divides the annual rate by 12 directly, rather than converting an effective annual rate, so results can differ marginally from tools that use the other convention.
Worked examples
| Monthly SIP | Return assumed | Period | Invested | Estimated value |
|---|---|---|---|---|
| ₹5,000 | 12% | 10 years | ₹6,00,000 | ≈ ₹11.6 lakh |
| ₹5,000 | 12% | 20 years | ₹12,00,000 | ≈ ₹50.0 lakh |
The second row shows the point of long investing horizons: doubling the time from 10 to 20 years multiplies the contributions by two but the final value by more than four, because compounding acts on the accumulated gains.
How to use the results sensibly
- The return rate is an assumption, not a promise. Mutual fund returns are market-linked and vary year to year. Try a conservative figure, an optimistic one and a pessimistic one, and plan around the lower numbers.
- Results are before tax and costs. The calculation does not deduct capital gains tax, fund expense ratios or exit loads, so actual take-home values will be lower.
- Inflation matters. ₹50 lakh in 20 years will buy much less than ₹50 lakh today. For goals like education or retirement, adjust the target upward for expected inflation.
- The SIP amount is fixed here. If you plan to raise your contribution each year, a step-up calculation will give a better projection than this one.
SIP versus lump sum
A SIP spreads purchases across market highs and lows, which reduces the risk of investing everything at a poor moment, and it suits people who invest from monthly income. A lump sum puts all the money to work from day one, which historically has done better in steadily rising markets but carries more timing risk. To model a one-time investment, use the compound interest calculator.
Choosing the tenure and amount
Work backwards from a goal: decide the amount you need and the year you need it, then adjust the monthly SIP until the estimated value reaches it. Starting earlier with a smaller amount usually beats starting later with a larger one.
This tool is for education and planning only and is not investment advice. Check a fund's documents and consider your own risk tolerance, or speak to a registered adviser, before investing.