About the SIP Calculator
A Systematic Investment Plan (SIP) means investing a fixed amount every month into a mutual fund, index fund or ETF instead of putting in one lump sum. This SIP calculator projects what those monthly instalments could grow to, splitting the result into the money you put in and the returns earned on it, and showing how the balance builds year by year.
Use it to set a monthly target for a goal such as a house deposit, a child’s education or retirement, or to compare how much difference an extra few years or a slightly higher return makes. Because the same amount buys more units when prices are low and fewer when they are high, a SIP spreads your purchase price over time — this is often called rupee-cost or dollar-cost averaging.
The projection assumes a constant annual return compounded monthly and, by default, that each instalment is invested at the start of the month (the convention most fund houses and SIP calculators use). Real fund returns vary from year to year and are not guaranteed, so treat the result as an estimate. The inflation field shows roughly what the final amount would be worth in today’s money.
With the default inputs, the estimated maturity value is $1,161,695.38. Change any value above to recalculate instantly.
How to use the sip calculator
- 1Enter the amount you will invest every month.
- 2Enter a realistic long-term annual return for the fund type you are using.
- 3Choose how many years you plan to keep the SIP running.
- 4Leave timing on “start of month” unless your plan debits at month end.
- 5Read the maturity value, then check the table to see how returns snowball in later years.
Formula and method
The maturity value is the future value of a series of equal monthly payments. P is the monthly instalment, i is the monthly rate (annual return ÷ 12) and n is the number of months. The final (1 + i) factor applies because each instalment is invested at the start of the month and earns a full month of growth; choose “end of each month” to drop it, which gives a slightly lower result.
Total invested is simply P × n, and wealth gained is the maturity value minus the total invested. The inflation-adjusted figure divides the maturity value by (1 + inflation)^years to express it in today’s purchasing power. The calculation ignores fund expense ratios, exit loads and taxes, so use a net-of-fees return assumption.
- FV
- Estimated maturity value
- P
- Monthly SIP instalment
- i
- Monthly rate of return (annual rate ÷ 12 ÷ 100)
- n
- Number of monthly instalments (years × 12)
Worked examples
5,000 a month at 12% for 10 years
Investing 5,000 a month for 120 months puts in 600,000. At 1% a month, the SIP grows to about 1,161,695, so returns of roughly 561,695 almost double the money invested. With 6% inflation that is worth about 648,685 in today’s terms.
10,000 a month at 12% for 20 years
Doubling both the instalment and the period has a far bigger effect than doubling either alone: 2.4 million invested grows to nearly 10 million, and more than three-quarters of the final value is investment growth.
$500 a month at 8% for 25 years, end-of-month
A $500 monthly index-fund investment at 8% for 25 years, invested at the end of each month, reaches about $475,513 from $150,000 of contributions.
Frequently asked questions
How is SIP return calculated?+
Each instalment compounds monthly at the annual rate ÷ 12 for the months it stays invested. Adding up the future value of every instalment gives the maturity amount, which is what the formula FV = P × [((1+i)^n − 1)/i] × (1+i) does in one step.
What return should I assume for a SIP?+
Use a conservative, long-run figure for the asset class after fees. Broad equity funds are often modelled at 8%–12% a year and debt funds at 5%–7%, but past returns do not guarantee future ones, so test a lower rate too.
Is SIP better than a lump sum?+
A lump sum invested early usually ends higher when markets rise steadily, because more money is invested for longer. A SIP reduces the risk of investing everything at a peak and suits people investing from a monthly salary. See the SIP vs lump sum tool to compare.
Why does the calculator assume investment at the start of the month?+
Most mutual fund SIP calculators treat each instalment as an annuity due, invested at the beginning of the period. Switching to end-of-month gives a slightly lower maturity value because each payment earns one month less growth.
Are SIP returns taxed?+
Tax depends on your country and fund type. In India, equity fund gains are taxed as short- or long-term capital gains based on how long each instalment was held. Use the India SIP LTCG tax calculator for an estimate.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.