SIP Calculator

What is the SIP Calculator?

A SIP (Systematic Investment Plan) calculator estimates the future value of regular, fixed monthly investments in a mutual fund. Instead of investing a large amount at once, you invest a set sum every month and let compounding work over the long term. The calculator shows you the projected maturity value along with how much you invested versus how much you potentially earned.

How does it work?

Each monthly instalment is invested for the remaining duration of the plan and is assumed to grow at a constant expected annual rate. Because every contribution compounds for a different length of time, the calculator treats the SIP as a growing annuity, converting your annual return into a monthly rate and compounding each instalment until the end of the tenure.

Formula

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

FV = future value (maturity amount)
P = monthly investment amount
i = monthly rate of return (annual rate ÷ 12 ÷ 100)
n = total number of monthly instalments

Example calculation

If you invest ₹10,000 every month for 10 years at an expected 12% annual return, you contribute ₹12,00,000 in total. With monthly compounding the corpus grows to roughly ₹23.2 lakh — meaning over ₹11 lakh comes purely from returns.

Benefits

+Encourages disciplined, automated investing regardless of market levels.
+Rupee-cost averaging buys more units when prices are low and fewer when high.
+Small monthly amounts can compound into a large corpus over long periods.
+Flexible — you can start, pause, increase or stop SIPs at any time.

Limitations

!Assumes a constant rate of return; actual mutual fund returns fluctuate.
!Does not account for exit loads, expense ratios or taxes on gains.
!Inflation is not factored into the projected maturity value.

Conclusion

A SIP calculator is a quick way to set realistic goals and understand the power of compounding before you commit. Treat the output as an estimate, review your plan periodically, and stay invested through market cycles to give compounding the time it needs.

Frequently Asked Questions

What is a SIP calculator?+

It is a tool that estimates the maturity value of a mutual fund SIP based on your monthly investment, expected return and tenure.

Are the returns shown guaranteed?+

No. The expected return is an assumption you provide. Actual mutual fund returns vary with market performance and are not guaranteed.

Can I change my SIP amount later?+

Yes. Most funds allow you to increase (step-up), decrease, pause or stop a SIP. You can re-run the calculator with new values anytime.

What is a realistic expected return for equity SIPs?+

Long-term equity mutual funds in India have historically delivered around 10–14% annually, but past performance does not guarantee future results.

Does the calculator account for taxes?+

No. Capital gains tax and any exit load are not included. Your actual in-hand maturity value may be lower.

Is SIP better than a lump sum investment?+

SIP suits investors with regular income and helps average out volatility, while lump sum can work better when you have a large amount and markets are favourable. Both can be compared using our calculators.

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