SIP Calculator
Project the future value of a monthly SIP and see how much of it is your money versus market growth.
Market-linked returns are not guaranteed — this is an assumption.
Projected value
₹23,23,391
Wealth gained: ₹11,23,391
Absolute returns
93.62%
“SIP: Because timing the market loses to time in the market.”
SIP tips
- Start early — time in the market matters more than the amount for long goals.
- Increase your SIP as your income grows to reach goals faster.
- Stay invested through market dips; that's when a SIP averages your cost down.
How it's calculated
A SIP invests a fixed amount at the start of each month, compounding monthly at an assumed rate of return. We use the future value of an annuity-due (the standard SIP convention):
FV = P × [ (1 + i)n − 1 ] / i × (1 + i)
where P is the monthly investment, i is the monthly return (annual ÷ 12 ÷ 100) and n is the number of months. The return is an assumption — actual mutual fund returns are market-linked and not guaranteed.
Example
Investing ₹5,000 every month for 10 years at an assumed 12% annual return grows to roughly ₹11,61,695 — on ₹6,00,000 invested, that's about ₹5,61,695 in wealth gained. This assumes a steady 12% return, which real markets don't deliver smoothly.
About SIPs
A Systematic Investment Plan (SIP) is a way to invest in mutual funds by contributing a fixed amount regularly — usually monthly — instead of a single lump sum. It's the most common way Indians invest in equity and hybrid mutual funds, precisely because it doesn't require timing the market or having a large sum ready upfront.
How it works
Each month, your fixed amount buys units of the mutual fund at that day's NAV (net asset value). Over time, this naturally buys more units when prices are low and fewer when prices are high — a mechanism called rupee-cost averaging, which smooths out the effect of market volatility on your average purchase price.
How to use this calculator
- Set your monthly investment amount, an expected annual return, and the investment period.
- The expected return is an assumption — a long-term equity mutual fund average is often used, but there's no guarantee.
- Try our Step-Up SIP Calculator to model increasing your SIP amount every year as your income grows.
Strategies worth knowing
- Start as early as possible — a longer tenure benefits far more from compounding than a larger monthly amount over a shorter one.
- Don't stop during a downturn — pausing a SIP when markets fall defeats the rupee-cost-averaging benefit that a SIP is designed to capture.
- Review, don't churn — check your fund's performance periodically, but avoid switching funds reactively based on short-term movements.
Important caveats
- The return you enter is an assumption, not a guarantee — actual mutual fund returns are market-linked and can be negative in bad years.
- This calculator assumes a smooth, constant monthly return, which real markets never deliver — actual outcomes will differ even at the "right" average return.
- Mutual fund gains are subject to capital gains tax, not reflected in this calculator's output.
Why the annuity-due formula
SIP investments happen at the start of each month (the industry-standard convention), so each instalment gets a full month's growth before the next one is added — that's what "annuity-due" means mathematically, versus an "ordinary annuity" where deposits happen at the end of each period. It's a small but real difference in the final figure.
Benefits
- Removes the need to time the market — you invest consistently regardless of price.
- Builds a disciplined investing habit tied to your regular income.
- Accessible with small monthly amounts, unlike a lumpsum investment.
Frequently asked questions
What is a SIP?
A Systematic Investment Plan invests a fixed amount into a mutual fund at regular intervals (usually monthly). It builds discipline and averages your purchase cost across market ups and downs.
Are the returns shown here guaranteed?
No. The expected return is an assumption you enter, not a promise. Mutual fund returns are market-linked and vary year to year. Use the projection to compare scenarios, not as a guaranteed outcome.
How is the SIP future value calculated?
We use the future value of an annuity-due (contributions at the start of each month): FV = P × [ (1 + i)^n − 1 ] / i × (1 + i), where i is the monthly return and n the number of months.
SIP or lumpsum — which is better?
A lumpsum can do better when markets rise steadily after you invest, while a SIP reduces timing risk by spreading purchases over time. Many investors use a SIP for regular savings from salary and a lumpsum when they have a windfall.
Can I stop or pause a SIP?
Yes — most platforms let you pause for a few months or stop entirely with no penalty, unlike an RD's missed-instalment charges. That said, pausing during a market downturn works against the rupee-cost-averaging benefit a SIP is designed to capture.
What's a good SIP amount to start with?
There's no universal number — it depends on your income and goals. A common approach is to start with whatever you can invest consistently without straining your budget, then increase it over time (see our Step-Up SIP Calculator) as your income grows.
Comments (1)
- suganya 02 Aug 2026
I love these calculators, it helps me to calculate and invest better
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