What is a SIP Calculator?
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund at regular intervals, usually every month, instead of investing a large sum at once.
This SIP calculator estimates what those regular instalments could grow to over time at an expected rate of return, and shows how much of the final value is your own money and how much is growth.
How it helps you
- See the possible value of your SIP for any amount, return and time period in seconds.
- Understand the effect of compounding: how growth starts to outpace your contributions in later years.
- Compare a monthly SIP with a quarterly SIP, or see what starting five years later could cost you.
- Pick a realistic monthly amount for a goal before you start investing.
How it is calculated
M = P × [ ((1 + i)ⁿ − 1) ÷ i ] × (1 + i)
- M
- Estimated value at the end of the period
- P
- Amount invested every month
- i
- Monthly rate = expected yearly return ÷ 12 ÷ 100
- n
- Number of instalments = years × 12
The (1 + i) at the end means each instalment is invested at the start of the month.
You invest ₹10,000 a month for 10 years and expect a 12% yearly return.
- 1P = ₹10,000, i = 12 ÷ 12 ÷ 100 = 0.01, n = 10 × 12 = 120
- 2M = 10,000 × [ (1.01¹²⁰ − 1) ÷ 0.01 ] × 1.01
- 3Total invested = ₹10,000 × 120 = ₹12,00,000
Estimated value ≈ ₹23,23,391, of which about ₹11,23,391 is estimated growth.
How to use the SIP Calculator
- 1Choose Monthly SIP or Quarterly SIP.
- 2Enter the amount you plan to invest each time.
- 3Set the return you expect each year and how many years you will stay invested.
- 4Read the invested amount, estimated returns and total value, and hover the chart to see any year.
Frequently asked questions
Is the SIP return shown here guaranteed?
No. The calculator assumes the same return every year to show the effect of compounding. Mutual fund returns are market-linked and can be higher or lower in any year. The result is an estimate based on a constant rate. Actual market returns change every year and are not guaranteed.
What return should I assume?
Use a conservative figure that matches the kind of fund and your time horizon. It is better to plan with a lower rate and be pleasantly surprised than to rely on a high one.
Can I change or stop my SIP later?
Generally yes. Most schemes let you increase, decrease, pause or stop a SIP. Some schemes have a lock-in (for example three years for ELSS) or an exit load if you redeem early.
Is a monthly SIP better than a quarterly SIP?
For the same yearly amount the results are close. A monthly SIP invests money earlier and spreads purchases over more dates; a quarterly SIP may suit you if your income comes in less often.
What is rupee cost averaging?
Because you invest a fixed amount regularly, you buy more units when prices are low and fewer when prices are high. Over time this can smooth out your average purchase price.
How are SIP returns taxed?
Each instalment is treated as a separate investment, and gains are taxed when you redeem, as per the capital gains rules that apply to that fund type at the time. Check the current rules or speak to a tax professional.