SIP Calculator
Calculate the future value of monthly SIP investments: total invested, estimated returns and maturity value for your expected annual return rate and duration.
How SIP returns are calculated
A SIP (Systematic Investment Plan) invests a fixed amount every month. Each instalment compounds monthly
for however long it stays invested, so the future value is the annuity-due formula:
FV = P × ((1 + i)n − 1) ÷ i × (1 + i)
where P is the monthly investment, i the monthly rate
(expected annual return ÷ 12 ÷ 100) and n the number of monthly instalments.
The trailing (1 + i) reflects that each instalment goes in at the start of the month.
Estimated returns = FV − (P × n).
Worked example
Invest 5,000 per month for 10 years at an expected
12% annual return: i = 12 ÷ 12 ÷ 100 = 0.01 and n = 120.
(1.01)120 ≈ 3.3004, so FV = 5,000 × (2.3004 ÷ 0.01) × 1.01 ≈ 1,161,700.
You put in 600,000 across the decade; roughly 561,700 — nearly half the final corpus — is growth.
Assumptions to keep in mind
- The return is assumed constant every month. Real market returns are lumpy; the figure here is a smoothed projection, not a promise.
- Instalments are assumed invested on the 1st of each month with no missed months or step-ups.
- Expense ratios, exit loads and capital-gains tax are not deducted — enter a net expected return for a more realistic estimate.
Getting more out of a SIP
Duration is the strongest lever: at 12%, the same 5,000 monthly grows to about 0.5 million in 6 years but
about 2.5 million in 15 — the last few years contribute disproportionately. An annual "step-up" (raising
the instalment with your salary) compounds this further. Starting earlier with a smaller amount almost
always beats starting later with a bigger one.
Frequently asked questions
How is the SIP maturity value calculated?
FV = P × ((1 + i)n − 1) ÷ i × (1 + i), where P is the monthly investment, i the monthly return (annual return ÷ 12 ÷ 100) and n the number of monthly instalments. Each instalment is assumed to be invested at the start of the month (annuity-due), which is how most SIP calculators work.
Is the SIP return guaranteed?
No. The expected annual return is only an assumption — mutual-fund SIPs are market-linked and actual returns vary year to year. Equity funds have historically averaged 10–14% per year over long periods in growth markets, but past performance is no guarantee. Try a conservative and an optimistic rate to see the range.
What does 12% expected return mean for a monthly SIP?
It is converted to a monthly rate of 12 ÷ 12 ÷ 100 = 1% per month, and every instalment compounds at that rate for the months it stays invested. It does not mean the fund gains 12% in a straight line.
Why are my estimated returns bigger than the amount I invested?
Over long durations compounding dominates. Investing 5,000 monthly for 10 years at 12% means 600,000 invested but roughly 1,161,700 at maturity — the earliest instalments have had 10 years to grow, and gains themselves keep earning.
Is SIP better than a lump-sum investment?
They serve different situations. A lump sum invested early usually ends higher if markets rise steadily, but SIPs average your purchase price across ups and downs (rupee/dollar-cost averaging) and match how salaries arrive. Most people combine both: invest windfalls as lump sums, invest income via SIP.
Does this calculator account for expense ratio or taxes?
No — use a net expected return. If you expect the fund to earn 13% and its expense ratio is 1%, enter 12%. Capital-gains tax on redemption also reduces the final in-hand amount.