SIP Calculator
Calculate your SIP returns and see how your monthly investments grow over time.
What is the SIP Calculator?
A Systematic Investment Plan (SIP) is one of the most popular and disciplined ways to invest in mutual funds. Instead of investing a lump sum, you invest a fixed amount every month, which helps you benefit from rupee cost averaging and the power of compounding. Our SIP Calculator helps you estimate the future value of your monthly SIP investments based on your expected rate of return and investment duration.
Understanding how your SIP investments grow over time is crucial for financial planning. Whether you're saving for retirement, your child's education, a home purchase, or building an emergency fund — knowing your projected corpus helps you set realistic goals and stay on track. This calculator takes into account the compounding effect of monthly investments, which is the key driver of wealth creation through SIPs.
The beauty of SIP investing is that you don't need a large amount to start. Even small monthly contributions of $100 or ₹500 can grow into substantial wealth over 10-20 years, thanks to the magic of compound interest. Our calculator shows you exactly how much your money will grow, how much you'll have invested in total, and how much wealth you'll have gained from returns alone.
SIP calculators are essential tools for both beginner and experienced investors. For beginners, they demystify the investment process and make it tangible — you can see exactly how your money grows month by month. For experienced investors, SIP calculators help optimize contribution amounts and compare different return scenarios. Use this tool to model different investment amounts, return rates, and time periods to find the SIP strategy that works best for your financial goals.
All calculations are performed instantly in your browser. No personal data is collected or stored. The results are estimates based on the inputs you provide and assume a constant rate of return, which in reality may vary.
How Does the SIP Calculator Work?
The SIP Calculator works by applying the compound interest formula to your monthly investments. Here's how it works step by step:
1. Enter your monthly investment amount — This is the fixed amount you plan to invest every month through your SIP.
2. Set your expected annual return rate — This is the annual percentage return you expect from your investment. Equity mutual funds in India have historically returned 12-15% annually over long periods, while debt funds return 6-8%.
3. Choose your investment duration — This is how long you plan to continue your SIP, in years.
The calculator then computes the future value of all your monthly investments, accounting for compound interest on each installment. Each monthly contribution earns returns for the remaining duration, and these returns themselves earn returns — this is the compounding effect that makes SIPs so powerful.
The result shows three key numbers: your total future value (the corpus you'll accumulate), your total invested amount (simple sum of all monthly contributions), and your wealth gained (the difference, which represents your returns).
Formula & Calculation Method
The SIP future value is calculated using the standard future value of an annuity formula:
FV = P × [(1 + r)^n - 1] / r × (1 + r)
Where:
- FV = Future Value (the total corpus at the end of the investment period)
- P = Monthly investment amount (the fixed amount you invest each month)
- r = Monthly rate of return (annual rate ÷ 12)
- n = Total number of monthly installments (years × 12)
- (1 + r) at the end accounts for each payment being made at the beginning of the period
For example, if r = 12% annually, then the monthly rate r = 12/12/100 = 0.01 (1%). If you invest for 10 years, n = 120 months.
This formula calculates the future value assuming each monthly contribution is compounded at the given rate for the remaining investment period.
Example Calculation
Example: Monthly SIP of ₹10,000 at 12% annual return for 10 years
- Monthly investment (P): ₹10,000
- Annual return rate: 12% → Monthly rate (r): 1% = 0.01
- Duration: 10 years → Total months (n): 120
Using the formula: FV = 10,000 × [(1.01)^120 - 1] / 0.01 × 1.01
- (1.01)^120 = 3.300
- FV = 10,000 × [(3.300 - 1) / 0.01] × 1.01
- FV = 10,000 × 230.04 × 1.01
- FV ≈ ₹23,23,391
- Total invested: ₹10,000 × 120 = ₹12,00,000
- Wealth gained: ₹23,23,391 - ₹12,00,000 = ₹11,23,391
This means your ₹12 lakh investment grows to over ₹23 lakh — nearly doubling your money through the power of compounding!