SIP Calculator
About the SIP Calculator
Estimate the future value of a Systematic Investment Plan (SIP) — a fixed amount invested every month into mutual funds or index funds. The calculator projects your total invested amount, expected returns, and final corpus using compound growth. SIPs benefit from rupee-cost averaging and compounding: investing regularly smooths out market volatility, and returns earned begin generating their own returns over time.
This tool works in your browser: the files and text you use are processed on your device and are not uploaded.
How to use it
- Enter your monthly investment amount.
- Set the expected annual return rate (equity funds have historically averaged 10–14% over long periods; this is not guaranteed).
- Choose the investment duration in years to see the projected corpus and total gain.
Frequently asked questions
How is the SIP future value calculated?
It uses the standard future-value-of-annuity formula: FV = P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i), where P is the monthly investment, i is the monthly rate (annual rate ÷ 12), and n is the number of months.
What return rate should I assume?
A conservative long-term assumption for diversified equity funds is 10–12% per year; debt funds are typically 6–8%. Past performance does not guarantee future returns, so it is wise to model a low and a high scenario.
Is SIP better than a lump-sum investment?
A lump sum invested early in a rising market usually ends higher, but a SIP reduces timing risk by spreading purchases across market cycles. For most salaried investors, a SIP matches how income actually arrives.
Does the calculator account for inflation or taxes?
No — it projects nominal returns. To think in today’s money, subtract expected inflation (e.g. use a 12% return with 6% inflation as roughly a 6% real return), and remember capital-gains tax applies when you redeem.
This calculator is for informational and educational purposes only and does not constitute financial advice. Verify important figures with your bank, lender, or a qualified financial advisor.