A SIP calculator estimates what a systematic investment plan (SIP), a fixed amount invested every month, could grow to at an assumed annual return. For example, ₹5,000 a month for 10 years at 12% grows to about ₹11,61,695, of which ₹6,00,000 is your own money and about ₹5,61,695 is estimated gain.
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How to use the SIP calculator
- Enter your monthly investment.
- Enter an assumed annual return. Use a conservative figure; it is not guaranteed.
- Enter the number of years.
- Read the future value, the amount invested and the estimated gain.
For a one-time deposit use the compound interest calculator instead.
What formula does the SIP calculator use?
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i)
- P = monthly investment
- i = assumed annual return ÷ 12 ÷ 100
- n = number of monthly installments (years × 12)
The final × (1 + i) treats each installment as invested at the start of its month, so every installment earns one more month of return than in an end-of-month model. If the return is 0%, the future value is simply P × n. Amount invested = P × n, and estimated gain = future value − amount invested.
SIP calculator worked example
₹5,000 a month for 10 years at an assumed 12% a year:
- i = 12 ÷ 12 ÷ 100 = 0.01; n = 120
- FV = 5,000 × [(1.01120 − 1) ÷ 0.01] × 1.01 ≈ ₹11,61,695
- Amount invested = 5,000 × 120 = ₹6,00,000
- Estimated gain ≈ ₹5,61,695
With end-of-month installments the same inputs give about ₹11,50,193, so the timing assumption changes the result by about 1%.
SIP growth by years and return
₹5,000 a month at three assumed returns:
| Period | Invested | 8% | 10% | 12% |
|---|---|---|---|---|
| 5 years | ₹3,00,000 | ₹3,69,834 | ₹3,90,412 | ₹4,12,432 |
| 10 years | ₹6,00,000 | ₹9,20,828 | ₹10,32,760 | ₹11,61,695 |
| 15 years | ₹9,00,000 | ₹17,41,726 | ₹20,89,621 | ₹25,22,880 |
| 20 years | ₹12,00,000 | ₹29,64,736 | ₹38,28,485 | ₹49,95,740 |
| 25 years | ₹15,00,000 | ₹47,86,833 | ₹66,89,452 | ₹94,88,175 |
Time matters more than the rate: at 12%, the gain is less than the amount invested at 10 years but about four times it at 25 years.
SIP vs lump sum
Investing ₹6,00,000 at once for 10 years at 12% (compounded monthly) would grow to about ₹19,80,232, far more than the SIP’s ₹11,61,695, because the whole amount is invested from day one. The comparison is only fair if you actually have the lump sum. A SIP spreads purchases over time, which suits salary-based investing and avoids putting everything in at a single price.
Returns are not guaranteed
The rate you enter is an assumption, not a promise. Mutual fund returns vary from year to year and can be negative, while the sip calculator assumes a smooth constant return. Test a lower rate to see whether your plan still works. The SIP calculator also leaves out expense ratios, exit loads, taxes and inflation, all of which reduce what you keep.
Step-up SIPs and goal planning
Many investors raise their SIP each year as income grows. The calculator uses a fixed installment, so model a step-up by running it in stages. To plan for a goal, enter a conservative return, check the projected value at your target date and raise the monthly amount or extend the years if it falls short, rather than raising the assumed return.
Estimates for education only, not financial advice. Your lender’s figures are final.
Starting early versus investing more
The two levers in any SIP are how much you put in and how long you keep putting it in. Time usually matters more. Using the SIP calculator at an assumed 12% a year:
- ₹5,000 a month for 10 years grows to about ₹11.6 lakh on ₹6 lakh invested.
- ₹5,000 a month for 20 years grows to about ₹50 lakh on ₹12 lakh invested.
- ₹10,000 a month for 10 years grows to about ₹23.2 lakh on ₹12 lakh invested.
The 20-year plan and the doubled 10-year plan both invest ₹12 lakh, but the longer plan ends with more than twice as much because each early instalment compounds for longer. A person who starts at 25 instead of 35 can reach the same goal with a much smaller monthly amount.
Treat these as illustrations, not forecasts. Equity fund returns arrive unevenly, and a SIP calculator applies one steady rate to every month. Run it at 8%, 10% and 12% to see a range, and check the fund’s expense ratio, because a 1% yearly cost compounds against you just as returns compound for you.
Related converters and calculators
Related tools:
- Compound interest calculator: lump sums
- Mutual fund calculator: fund growth
- FD calculator: fixed deposits
- Inflation calculator: real value
- EMI calculator: loans
Sources
Investor.gov (SEC): Compound interest; Investor.gov (SEC): Compound interest calculator; Securities and Exchange Board of India (SEBI).
Questions about this calculator
How is SIP return calculated?
FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), with i the monthly rate and n the number of months.
What is ₹5,000 a month for 10 years at 12%?
About ₹11,61,695, of which ₹6,00,000 is invested.
Are SIP returns guaranteed?
No. The return is an assumption; real mutual fund returns vary and can be negative.
Does the SIP calculator include taxes and fees?
No. Expense ratios, exit loads and taxes reduce actual returns.
Is SIP better than a lump sum?
A lump sum invested at once grows more at the same return, but a SIP suits monthly income and spreads purchases over time.
Check the assumptions and units before relying on a result. Financial, tax and health estimates do not replace advice for your individual circumstances.
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