SIP Calculator
Enter your monthly investment, expected annual return, and time period — the maturity amount updates live.
How SIP Calculator Works
A SIP (Systematic Investment Plan) is a fixed amount invested every month, typically into a mutual fund, that grows over time through compounding at an assumed rate of return. This calculator projects the maturity value of a monthly SIP from your monthly contribution, expected annual return, and investment period.
Formula & Method
This calculator uses the standard SIP future-value formula for a monthly investment made at the start of each month: FV = P × ((1 + i)n − 1) ÷ i × (1 + i), where P is the monthly investment, i is the expected monthly return (the annual rate divided by 12, as a decimal), and n is the total number of monthly installments (years × 12). The extra × (1 + i) factor accounts for each month's investment earning a return for that same month, matching the "invest at the start of the month" convention most SIP calculators use. Total invested is simply P × n, and total returns (wealth gained) is FV − total invested.
Worked Example
For a monthly SIP of ₹5,000 at an expected 12% annual return over 10 years: the monthly rate is 12% ÷ 12 = 1%, and there are 120 monthly installments. This projects a maturity amount of about ₹11,61,695, against a total invested amount of ₹6,00,000 (5,000 × 120) -- meaning roughly ₹5,61,695 of the final value comes from investment returns rather than your own contributions.
Frequently Asked Questions
- Is the projected return guaranteed?
- No -- the Expected Annual Return is an assumption you provide, not a guaranteed rate. Actual mutual fund and market returns vary year to year and can be lower (or higher) than what you enter, so treat the maturity amount as an illustrative projection rather than a promise.
- Why does the formula include an extra (1 + i) factor?
- It reflects that most SIP calculations assume each month's investment is made at the start of that month, so it earns a return for the full month it's invested rather than starting to grow only from the following month. This is the same "annuity due" convention many SIP calculators from mutual fund providers use.
- How much of my maturity amount is actually "my money" versus returns?
- The "Total Invested" stat shows the sum of your own monthly contributions (monthly investment × number of months), and "Total Returns (Wealth Gained)" shows the difference between the projected maturity amount and that total invested -- the portion attributable to compounding growth rather than your own deposits.
- Does increasing my SIP amount partway through get factored in?
- No -- this calculator assumes a constant monthly investment for the entire period. If you plan to step up your contribution over time (a "step-up SIP"), you'd need to estimate each stage separately, since this tool projects a single fixed monthly amount throughout.