SIP Calculator
Estimate the future value of regular monthly SIP contributions using an assumed annual return. This calculator assumes each contribution is invested at the beginning of the month; actual investment returns are not guaranteed.
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Illustrative estimate based on the values entered.
Results are estimates for general planning only. Actual charges, lender terms, tax rules and returns may differ. This calculator does not provide financial, investment, tax or lending advice.
SIP Calculator: Guide, Mathematics & Wealth Projections
A Systematic Investment Plan (SIP) allows retail investors to invest a fixed sum at regular monthly intervals into mutual funds. By investing consistently across market cycles, SIP helps leverage rupee-cost averaging and compounding. Use our free SIP calculator to estimate expected maturity wealth and capital appreciation under various expected return rates.
The Monthly SIP Compounding Formula
Because monthly installments are credited at the start of each payment period, the future value ($FV$) is calculated using the annuity-due model:
FV = P × [ (1 + i)^n - 1 ] / i × (1 + i)
- FV: Estimated future maturity balance.
- P: Fixed monthly SIP installment amount.
- i: Periodic monthly rate of return (Nominal annual return percentage divided by 12, then divided by 100).
- n: Total number of monthly installments paid (Tenure in years × 12).
Total invested capital is calculated as $P \times n$, and the estimated wealth gain is $FV - \text{Total Invested}$.
Benchmark SIP Scenarios (₹5,000 / Month @ 12.00% Expected Return)
| Investment Horizon | Total Invested | Estimated Wealth Gain | Expected Future Value |
|---|---|---|---|
| 5 Years (60 mo.) | ₹3,00,000 | ₹1,12,442 | ₹4,12,442 |
| 10 Years (120 mo.) | ₹6,00,000 | ₹5,61,695 | ₹11,61,695 |
| 15 Years (180 mo.) | ₹9,00,000 | ₹16,22,880 | ₹25,22,880 |
| 20 Years (240 mo.) | ₹12,00,000 | ₹37,95,740 | ₹49,95,740 |
Explore Related Financial Tools
To compare ongoing wealth creation against debt obligations or guaranteed bank products, use our companion calculators:
- Compare mutual fund growth with bank guaranteed returns on the Fixed Deposit (FD) Calculator.
- Estimate lumpsum compounded investment growth using the Compound Interest Calculator.
- Plan your debt commitments and monthly outflows using the EMI Calculator.
- Calculate property loan repayments on the Mortgage Calculator.
- Browse all available tools on the FinPath Calculators Directory.
Frequently Asked Questions
Are SIP mutual fund returns guaranteed?
No. Mutual funds invest in equity and debt market instruments, which are subject to market fluctuations. The assumed return rate is solely an illustrative model for long-term scenario planning.
What is the difference between a SIP and a Lumpsum investment?
A lumpsum investment deploys capital all at once on a single date, whereas an SIP staggers contributions monthly, averaging out market volatility through rupee-cost averaging.
Does this calculator account for LTCG tax or expense ratios?
No. The calculator illustrates gross mathematical growth. In India, equity mutual fund capital gains above ₹1.25 Lakh per financial year are subject to 12.5% Long-Term Capital Gains (LTCG) tax.
Statutory Notice: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. This calculator provides educational scenarios and does not constitute SEBI-registered investment advice.
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