SIP Calculator (Systematic Investment Plan)
Estimate the future value of a monthly SIP in mutual funds. Enter how much you invest each month, your expected annual return and the duration — see your total invested amount, estimated returns and final corpus.
How to use this calculator
- Enter your monthly SIP amount — even 500 or 1,000 per month compounds meaningfully over time.
- Enter the expected annual return. Long-term equity funds have historically averaged 10–14%, but this is not guaranteed.
- Enter the period in years and press Calculate.
- Try adding 5 more years to the period — the last years contribute the most, which is the power of compounding.
Formula used
Where M is the monthly investment, i is the monthly return (annual ÷ 12), and n is the total number of installments. The trailing (1 + i) reflects investing at the start of each month.
Example calculation
Investing 10,000/month at an expected 12% annual return for 15 years:
Total invested = 1,800,000. Maturity value ≈ 5,045,760, meaning estimated returns of about 3,245,760 — your gains end up larger than everything you put in.
What is a SIP?
A SIP (Systematic Investment Plan) is a way of investing a fixed amount into a mutual fund at regular intervals — usually monthly — instead of a one-time lump sum. It automates the habit of investing and removes the temptation to time the market.
Because you buy every month regardless of price, you automatically buy more units when markets are down and fewer when they're up — known as rupee-cost (or dollar-cost) averaging. Combined with compounding over long periods, SIPs are one of the simplest and most effective ways to build wealth from a regular income.
Why use this calculator?
- Set a concrete target: see exactly what monthly amount gets you to your goal in your timeframe.
- Compare scenarios — different returns, durations and amounts — in seconds before committing.
- Stay motivated by visualizing what consistent investing achieves over 10, 15 or 20 years.
Frequently asked questions
How is SIP return calculated?
Each monthly installment compounds for a different length of time, so the calculator sums the future value of every installment using FV = M × [((1+i)^n − 1)/i] × (1+i). The result is an estimate assuming a constant rate — real fund returns fluctuate year to year.
What return should I assume for a SIP?
There's no guaranteed number. Diversified equity funds have historically delivered around 10–14% annually over long periods in growth markets, while debt funds return less with lower risk. Using a conservative estimate (10–12%) keeps your planning realistic.
Is SIP better than a lump sum investment?
Mathematically a lump sum invested early often wins if markets rise steadily, but SIPs reduce timing risk and match how most people earn — monthly. For salaried investors, SIP is usually the practical winner because it actually gets invested.
Can I increase my SIP amount every year?
Yes — this is called a step-up or top-up SIP. Increasing your SIP by even 10% annually as your income grows can increase your final corpus by 50% or more over 15–20 years.