SIP Calculator

A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. Each instalment buys units at that month's NAV, and the units grow with the fund's returns. This calculator estimates what a regular monthly SIP could be worth after a chosen number of years, assuming a constant annual return.

How to use this calculator

1. Enter your monthly SIP amount (for example, ₹10,000).
2. Enter the expected annual return in percent.
3. Enter the investment period in years.
4. Read the total amount invested, the estimated gains and the estimated maturity value.

Try more than one return assumption. The gap between 8% and 12% over 20 years is large.

Formula

The calculator assumes each instalment is paid at the start of the month:

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

• FV = estimated future value (maturity amount)
• P = monthly SIP amount
• i = monthly rate = annual return ÷ 12 ÷ 100
• n = number of monthly instalments (years × 12)

The final (1 + i) factor reflects the fact that each payment is invested at the beginning of the month, so it earns one extra month of growth compared with an end-of-month assumption.

Worked example

You invest ₹10,000 a month for 10 years and assume 12% a year.

• i = 12 ÷ 12 ÷ 100 = 0.01
• n = 10 × 12 = 120
• (1.01)^120 ≈ 3.3004

FV = 10,000 × [(3.3004 − 1) ÷ 0.01] × 1.01 ≈ 10,000 × 230.04 × 1.01 ≈ ₹23.23 lakh

Nearly half the final value comes from compounding, and most of that growth arrives in the later years.

Things to keep in mind

• Returns are not guaranteed. Mutual fund returns depend on markets. Equity funds can fall sharply in some years. The calculator uses a smooth, constant rate, which real portfolios never deliver.
• Rupee cost averaging. Because a fixed amount buys more units when prices are low and fewer when prices are high, SIPs smooth your average purchase cost. They do not prevent losses.
• Expense ratio. Treat the return you enter as a return after fund expenses. Direct plans have lower expense ratios than regular plans.
• Taxes. For equity-oriented funds, long-term capital gains (units held over 12 months) are taxed at 12.5% above ₹1.25 lakh a year, and short-term gains at 20%. Debt funds bought after 1 April 2023 are taxed at slab rates. Each SIP instalment has its own holding period. The calculator shows pre-tax values.
• Exit loads. Many equity funds charge an exit load (often 1%) if units are redeemed within a year.
• Inflation. ₹23 lakh in ten years will buy less than ₹23 lakh today. Compare the result with your goal in future rupees, not current ones.
• Step-up SIPs. If you raise your SIP each year with your income, the final value will be higher than shown here.

This is an educational estimate, not investment advice. Read the scheme documents and consider your risk profile before investing.