Assumes returns compound monthly and are reinvested. Actual mutual fund returns vary and are not guaranteed.
What is a SIP calculator, and who needs it?
A SIP (systematic investment plan) lets you invest a fixed amount in a mutual fund every month instead of putting in a large sum at once. This calculator estimates what that habit could grow to. Enter your monthly amount, the annual return you expect and the number of years, and it shows the maturity value, the total you invested and the estimated gain.
It is useful for salaried people starting their first SIP, parents saving for a child's education, and anyone checking whether ₹5,000 a month is enough for a goal. Trying different amounts and durations shows how much time matters. If you are also repaying a loan, our EMI Calculator helps you see how much room is left to invest.
Formula used
- Monthly rate (r) = annual return ÷ 12 ÷ 100
- Number of instalments (n) = years × 12
- Maturity value = P × [((1 + r)n − 1) ÷ r] × (1 + r), where P is the monthly investment
- Invested amount = P × n
- Estimated returns = Maturity value − Invested amount
The extra (1 + r) at the end assumes each instalment is invested at the start of the month, so it earns returns for the full month.
Worked example
Say you invest ₹10,000 a month for 10 years at an expected 12% a year. The monthly rate is 12 ÷ 12 ÷ 100 = 0.01 and there are 10 × 12 = 120 instalments. (1.01)120 is about 3.3004, so the bracket works out to (3.3004 − 1) ÷ 0.01 = 230.04. Multiply by 1.01 to get 232.34, then by ₹10,000. The maturity value is about ₹23,23,391.
You invested ₹10,000 × 120 = ₹12,00,000, so the estimated return is about ₹11,23,391. Now compare ₹5,000 a month for 20 years at the same 12%. You still invest ₹12,00,000 in total, but the maturity value is about ₹49,95,740. Starting earlier with a smaller amount can beat a larger amount started late.
Frequently asked questions
How is the maturity value of a SIP calculated?
Each monthly instalment is assumed to earn a fixed monthly return, and the gains are reinvested so they also earn returns. The calculator adds up the compounded value of every instalment using the formula P × [((1 + r)^n − 1) ÷ r] × (1 + r), where P is the monthly amount, r is the monthly rate and n is the number of months.
Are SIP returns guaranteed?
No. A SIP in a mutual fund is linked to market performance, so the real value can be higher or lower than the estimate, and in some periods you can even lose money. The calculator assumes one steady rate every year, which real markets never deliver.
What annual return should I enter?
There is no correct number because future returns are unknown. A sensible approach is to run a few cases, such as 8%, 10% and 12%, and plan around the lower ones. Debt funds usually offer lower expected returns than equity funds, so use a lower rate for them.
What is the difference between a SIP and a lump sum investment?
A SIP invests a fixed amount every month, so you buy units at different prices over time and do not need a large amount upfront. A lump sum puts the whole amount in at one time. This calculator covers SIPs only; it does not work out lump sum growth.
Does the calculator include tax, expense ratio or exit load?
No. The result is before capital gains tax, the fund's expense ratio and any exit load, all of which reduce what you actually receive. Tax rules change, so check the current rules for your type of fund before relying on the figure.
Limitations and accuracy
This is an estimate, not a forecast. It assumes the same return every year, instalments that never change and no missed payments. It divides the annual rate by 12 to get the monthly rate, so a 12% input is treated as a nominal rate; some fund factsheets quote returns differently, such as XIRR or CAGR, which can give slightly different results. It does not include annual step-ups in your SIP, inflation, taxes, expense ratio or exit load. Use it to compare scenarios and set goals, and check a fund's factsheet and a SEBI-registered advisor before investing. This tool is for information only and is not financial advice.