SIP Calculator

Estimate your mutual fund SIP returns — enter monthly investment, expected return, and duration.

Monthly Investment (₹) ₹5,000

Expected Annual Return (%) 12%

Investment Duration (Years) 10 years

Invested Amount

₹6,00,000

Estimated Returns

₹5,58,353

Total Value

₹11,58,353

🔵 Invested 🟢 Returns

Show Year-by-Year Breakdown ▾

Year	Invested	Returns	Total Value

What Is a SIP Calculator?

A SIP (Systematic Investment Plan) calculator helps you estimate the future value of regular monthly investments in mutual funds. Instead of investing a large lump sum at once, SIPs let you invest a fixed amount every month. This calculator shows you how much your money could grow over time based on the amount you invest, the expected annual return rate, and how long you stay invested.

SIPs are one of the most popular investment methods in India because they make mutual fund investing accessible — you can start with as little as ₹500 per month. The power of SIP lies in two concepts: compounding (your returns earn their own returns) and rupee cost averaging (you automatically buy more units when prices are low).

How Is SIP Return Calculated?

The SIP maturity value is calculated using the future value of an annuity formula:

FV = P × [((1 + r)ⁿ − 1) / r] × (1 + r)

Where:

P = Monthly investment amount
r = Monthly rate of return (annual rate ÷ 12)
n = Total number of months
FV = Future value (maturity amount)

For example, if you invest ₹5,000 per month for 10 years at an expected return of 12% per annum, the monthly rate is 1% (12% ÷ 12). Over 120 months, the formula gives a maturity value of approximately ₹11.6 lakhs against a total investment of ₹6 lakhs — meaning your money nearly doubles.

SIP vs Lump Sum — Which Is Better?

Both approaches have their place. SIPs work well for salaried individuals who can invest a fixed portion of their income every month. The key advantage of SIP is rupee cost averaging — when the market drops, your fixed monthly amount buys more units, and when it rises, you buy fewer. Over time, this averages out the cost per unit and reduces the impact of market volatility.

Lump sum investment can outperform SIP if you invest when the market is low, but timing the market consistently is extremely difficult. For most people, SIP is the simpler, more disciplined approach to long-term wealth creation.

Tips for SIP Investors

Start early: The longer your investment horizon, the more compounding works in your favour. A 25-year-old investing ₹5,000/month at 12% for 30 years will accumulate approximately ₹1.76 crores.
Increase SIP annually: Step up your SIP amount by 10-15% every year as your income grows. This significantly accelerates wealth creation.
Stay invested during downturns: Market crashes are when SIP works best — you accumulate more units at lower prices. Stopping SIPs during market dips defeats the purpose.
Choose direct plans: Direct mutual fund plans have lower expense ratios than regular plans, meaning more of your money stays invested.

Frequently Asked Questions

A SIP calculator estimates the future value of your Systematic Investment Plan based on the monthly investment amount, expected annual return rate, and investment duration. It helps you plan your mutual fund investments by showing the total amount invested, estimated returns, and maturity value.

SIP returns are calculated using the compound interest formula: FV = P × [((1 + r)^n − 1) / r] × (1 + r), where P is the monthly investment, r is the monthly rate of return (annual rate divided by 12), and n is the total number of months. Each monthly instalment earns compound interest for its remaining duration.

There is no single "right" amount — it depends on your income and financial goals. A common guideline is to invest 15-20% of your monthly income through SIPs. Even starting with ₹500 or ₹1,000 per month can grow significantly over 15-20 years due to compounding.

No. SIP returns from mutual funds are subject to market risks and are not guaranteed. The calculator provides estimates based on expected return rates. Actual returns may be higher or lower depending on market conditions. Historical average returns for equity mutual funds in India have been around 12-15% per annum over long periods.

SIP invests a fixed amount at regular intervals (usually monthly), while lump sum invests the entire amount at once. SIP benefits from rupee cost averaging — you buy more units when prices are low and fewer when prices are high, which reduces the impact of market volatility over time.