SIP Calculator

How the SIP calculator works

A SIP (Systematic Investment Plan) invests a fixed amount in a mutual fund every month. Because each instalment earns returns, and those returns then earn their own returns, your money compounds over time. This calculator uses the standard future value of a series formula:

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

Here P is your monthly investment, i is the monthly rate of return (annual rate ÷ 12), and n is the number of months. The calculator runs this instantly as you move the sliders, and splits the result into the amount you invested versus the returns you earned on top.

A quick example

Invest ₹10,000 a month for 15 years at an assumed 12% annual return, and you'd invest ₹18 lakh of your own money — which grows to roughly ₹50 lakh. The extra ~₹32 lakh is compounding at work. Stretch the same SIP to 20 years and it crosses ₹90 lakh, because the last few years do the heaviest lifting.

What return rate should you assume?

Equity mutual funds in India have historically returned around 10–14% a year over the long term, so 12% is a common middle estimate. But returns are never guaranteed — some years are strongly positive, others negative. Treat the result as a projection, not a promise, and use a more conservative rate (say 10%) if you want a safety margin.

Tips for using SIPs well

• Start early. Time matters far more than amount — a smaller SIP over 20 years usually beats a larger one over 10.
• Step it up. Increasing your SIP a little each year (a step-up SIP) dramatically raises the final corpus.
• Stay invested. Stopping during a market dip locks in losses; SIPs work by buying more units when prices are low.

Want to see how much you need for a specific goal? Read how much SIP you need to reach ₹1 crore, or compare with a one-time investment in SIP vs lumpsum.