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SIP Calculator

See how a fixed monthly investment can grow over time. Change the amount, return and years and watch your invested money and returns update instantly.

About the SIP Calculator

A systematic investment plan (SIP) means investing the same amount at regular intervals, usually monthly, into a mutual fund or similar investment. It is the most common way people in India invest in mutual funds, and the same idea is called a recurring or automatic investment elsewhere.

Investing a little every month builds the habit, spreads your purchases across market highs and lows, and lets compounding work: returns start earning their own returns.

The formula

FV = P × ((1 + i)ⁿ − 1) ÷ i × (1 + i)

FV
future value of the investment
P
amount invested each month
i
monthly rate of return (yearly rate ÷ 12 ÷ 100)
n
number of monthly payments

This assumes each payment is made at the start of the month and the return stays constant. Real market returns go up and down.

How to read your result

  • Invested is the total of your own payments.
  • Returns are the growth on top of what you put in.
  • The chart shows how returns overtake contributions in later years. That is compounding at work, and why starting early matters.

Worked example

₹5,000 a month for 10 years at 12%

  1. You invest ₹6,00,000 in total.
  2. The estimated value is about ₹11,61,695.
  3. Returns of about ₹5,61,695 almost match what you put in.

Things to keep in mind

  • Market-linked returns are not guaranteed. Use a conservative rate for planning.
  • It ignores fund expenses, exit loads and taxes on gains.
  • Inflation reduces what the final amount can buy.

Questions people ask

What return should I assume?

Use a rate you are comfortable planning with. Long-run equity returns have historically been higher than debt, but they swing a lot from year to year. Trying a low, middle and high rate shows the range of outcomes.

What is a step-up SIP?

Raising your monthly amount by a fixed percentage each year, usually in line with salary increases. Even small step-ups make a large difference over long periods.

Is SIP better than a lump sum?

Neither is always better. A lump sum invested earlier has more time to grow; a SIP spreads your entry price and suits a monthly income.

Sources