SIP Calculator
This SIP calculator estimates the maturity value of a monthly systematic investment plan — the way most Indians invest in mutual funds. Enter your monthly SIP amount, an expected annual return, and the investment period to see how much wealth disciplined monthly investing can build. SIPs turn market volatility into an ally through rupee-cost averaging: you buy more units when markets fall and fewer when they rise, automatically.
The fixed sum you invest every month. SIPs in Indian mutual funds start from ₹500; consistency matters more than size.
Long-run equity fund returns have averaged 11–13%; hybrid funds 8–10%; debt funds 6–7%. Use a conservative figure for planning.
SIP rewards patience. Equity SIPs need 7+ years to smooth out market cycles; 15–20 years is where compounding takes over.
Estimated maturity value
₹50,45,760
What your SIP is projected to be worth at the end — e.g. ₹10,000/month at 12% for 15 years matures to about ₹50.5 lakh.
Your actual out-of-pocket money — every monthly instalment added together, with no growth included.
What the market added on top of your contributions — the difference between maturity value and total invested.
Same figure as total amount invested, shown here for quick side-by-side comparison against total gains.
Same figure as wealth gained — how much of the maturity value came from returns rather than your own contributions.
How to use this sip calculator
- 1Monthly SIP amount: pick a figure you can sustain through job changes and emergencies — a ₹5,000 SIP that never stops beats a ₹20,000 SIP abandoned in year two. Step it up 10% yearly as your salary grows.
- 2Expected return: be conservative. Equity index and flexi-cap funds have delivered 11–13% annualised over long periods, but planning at 10–11% leaves margin for bad decades. Debt funds: use 6–7%.
- 3Investment period: the decisive input. At 12%, the last 5 years of a 25-year SIP generate more wealth than the first 15 combined.
- 4Compare 'wealth gained' against 'total invested' — that gap is compounding working for you instead of against you (as it does in a loan).
Understanding your results
The maturity value assumes a steady annual return — real markets deliver that average unevenly, so treat the figure as the centre of a range, not a promise. Total invested is your actual out-of-pocket money; wealth gained is what the market added. Notice the ratio: at 12% over 20 years, gains are roughly 1.5× what you put in; over 30 years, nearly 3×. The estimate ignores expense ratios (0.1–2% depending on direct vs regular plans — choose direct), exit loads, and capital-gains tax (12.5% LTCG above ₹1.25 lakh/year on equity). Even after those frictions, the SIP remains India's most reliable mass-market wealth builder — provided you do not stop it during crashes, which is statistically when SIPs do their best work.
The formula
FV = P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i)P is the monthly SIP amount, i the monthly return rate (annual ÷ 1200), n the number of months. Each instalment compounds for a different length of time — the first for the full period, the last for one month — and this formula sums all of them as a future-value annuity, with the extra (1 + i) because SIPs invest at the start of each month. The maths hides the behavioural benefit: because instalments are fixed, you automatically buy more units at low NAVs and fewer at high ones, which is why SIP returns in volatile markets often beat the naive average.
A worked example
₹10,000 per month at 12% for 15 years: monthly rate 1%, 180 instalments. The formula gives FV ≈ ₹50,45,760. You invested ₹18,00,000 — so compounding added ₹32,45,760, nearly double your contributions. Extend to 25 years with the same ₹10,000: maturity becomes ₹1,89,76,351 on ₹30,00,000 invested — gains of ₹1.6 crore. The extra 10 years added ₹1.4 crore of wealth. Now add a 10% annual step-up (raising the SIP each year as salary grows) and the 25-year figure roughly doubles again. Time in the market, plus step-ups, beats fund-picking for almost everyone.
Notes for the UK, US and India
SIP is an India-native concept; UK and US investors do the same thing called 'monthly investing' or 'dollar-cost averaging' into ISAs and 401(k)s. For Indian investors: choose direct plans (save ~1% annually in fees — that 1% compounds to lakhs over 20 years), link SIPs to goals not market moods, and remember equity LTCG above ₹1.25 lakh/year is taxed at 12.5%. ELSS funds offer 80C deductions with a 3-year lock-in. Avoid stopping SIPs in bear markets — the 2008, 2020 and 2022 crashes were the best buying windows SIP investors ever got. Review funds annually, not monthly.
Frequently asked questions
How is SIP return calculated?+
Each monthly instalment compounds separately for its remaining tenure, summed by the annuity formula FV = P × [((1+i)ⁿ − 1)/i] × (1+i). ₹10,000/month at 12% for 15 years matures to about ₹50.5 lakh on ₹18 lakh invested.
Is SIP better than lumpsum?+
Mathematically, lumpsum wins about two-thirds of the time because markets rise more often than they fall. Behaviourally, SIP wins for most people — it removes timing anxiety, enforces discipline, and suits salaried cash flows. Invest lumpsums when you have them; run SIPs on your income.
What happens if I miss a SIP instalment?+
Nothing serious — the fund simply does not debit that month (banks may charge a small failed-auto-debit fee after repeated misses). Your existing units keep compounding. Missing instalments breaks the discipline, not the investment.
Can I lose money in a SIP?+
Yes, over short periods — equity SIPs can be negative for 1–3 years during bear markets. Historically, 7+ year equity SIP horizons in India have rarely produced losses. Match the fund type to your horizon: equity for 7+ years, hybrid for 4–7, debt for under 4.
What is a step-up SIP?+
A SIP that automatically increases each year, typically 10%. A ₹10,000 SIP stepped up 10% annually at 12% for 25 years builds roughly twice the corpus of a flat ₹10,000 SIP — because your income grows, your investment should too.
SIP or FD — which is better?+
For goals beyond 7 years, equity SIPs have historically beaten FDs by 4–6% annually after tax; FDs offer certainty, SIPs offer growth. For money needed within 3 years, FDs and debt funds are the right home — never SIP into equity for short-term goals.