SIP Calculator

Find out how much your monthly SIP investment will grow.

Amount you will invest every month (Rs)

Expected yearly return rate (%)

Number of years you will stay invested

Your SIP Returns

Maturity Value

₹11.62 L

Total Invested

₹6.00 L

Returns Earned

₹5.62 L

Wealth Growth Over Time

How the SIP Calculator Works

A Systematic Investment Plan (SIP) means investing a fixed amount every month into a mutual fund, regardless of whether markets are up or down that month. This calculator projects what that monthly habit could grow into, using the standard SIP future-value formula and the expected annual return you enter -- it's a projection based on that assumed rate, not a promise, since real mutual fund returns vary year to year.

The math behind it is compound interest applied every month: each month's contribution starts earning returns immediately, and those returns themselves start earning further returns. Over long periods this compounding effect does most of the heavy lifting -- which is why the gap between 'invested' and 'maturity value' widens so much faster in the later years of a long SIP than in the early ones.

Maturity Value = P × [((1 + i)^n − 1) / i] × (1 + i), where P = monthly SIP amount, i = annual return ÷ 12 ÷ 100, n = years × 12

Worked example (the calculator's own defaults)

₹5,000 a month for 10 years at an assumed 12% annual return grows to approximately ₹11,61,695 -- against ₹6,00,000 actually invested, meaning roughly ₹5,61,695 came from returns alone, not your own contributions.

Frequently asked questions

Is the 12% default return rate guaranteed?

No -- it's a commonly used long-term assumption for diversified equity mutual funds in India, not a guarantee. Change it to match your own fund's actual historical CAGR, or a more conservative estimate, for a more personal projection.

Why does the formula use (1 + i) at the end?

That accounts for SIP contributions typically being processed at the start of each month (an 'annuity-due') rather than the end, so each contribution gets one extra month of compounding compared to a plain ordinary annuity.

Does this calculator account for expense ratio or exit load?

No -- it models the return you enter as the net figure you actually expect to earn. If you want to be precise, use a return assumption that already reflects a fund's expense ratio, since fund NAVs are already published net of that cost.