SIP Calculator

SIP Calculator: project the future value of your monthly investments

A Systematic Investment Plan (SIP) is the workhorse of retail mutual fund investing in India. You commit to investing a fixed amount every month — ₹5,000, ₹10,000, ₹25,000 — directly from your bank account into a mutual fund scheme, and you keep doing it for years. This calculator shows the maturity value, the total amount invested, and the wealth gained over any time horizon.

The math behind it

The future value of a monthly SIP, assuming a constant return rate, follows this formula:

FV = P × [((1 + i)ⁿ − 1) / i] × (1 + i)

where:

• P is the monthly investment
• i is the monthly rate of return (annual rate ÷ 12)
• n is the total number of months

The (1 + i) multiplier at the end accounts for the first installment being invested at the start of the month rather than the end — the standard convention for most Indian SIP schemes.

Why SIPs work

1. Rupee-cost averaging. You buy more units when markets are down and fewer when they are up. Over time, your average cost per unit is below the simple average market price.
2. Compounding. Each month’s investment earns returns, and those returns earn returns, and so on. The curve of wealth growth is exponential, not linear — which is why starting early matters so much.
3. Behavioral discipline. Automating the investment removes the temptation to time the market. Most retail investors who try to time the market do worse than a boring monthly SIP.

Example calculations

• ₹10,000/month for 10 years at 12% → approximately ₹23.2 lakh (₹12 lakh invested, ₹11.2 lakh gained)
• ₹10,000/month for 20 years at 12% → approximately ₹92 lakh (₹24 lakh invested, ₹68 lakh gained)
• ₹25,000/month for 25 years at 12% → approximately ₹4.7 crore (₹75 lakh invested, ₹3.95 crore gained)

Notice how the time multiplier beats the amount multiplier: tripling the tenure grows the corpus much more than tripling the monthly contribution.

How to use this calculator

Adjust the three sliders:

• Monthly investment — your planned SIP amount.
• Expected annual return — a reasonable range for equity mutual funds is 10–14%, though past performance does not guarantee future returns.
• Duration — how many years you plan to stay invested.

The maturity value, total invested amount and estimated gains update in real time.

Limitations

This calculator assumes a constant return rate, no taxes, no exit loads and that every SIP installment is honored on time. Real returns will vary year-to-year; the value of this tool is in showing the shape of long-term wealth creation, not an exact number.