Finance

SIP Calculator

Calculate the future corpus from monthly SIP investments, find the monthly amount needed to reach a goal, or estimate your expected annual return.

Enter values above to see the result.

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SIP Future Value Formula

SIP returns are calculated using the future value of an annuity due formula, where contributions are made at the beginning of each period.

FV = P × [(1 + r)ⁿ − 1] / r × (1 + r)

P = monthly investment · r = monthly rate (annual ÷ 12) · n = total months

Why Start SIPs Early

The most powerful variable in a SIP calculation is time. Starting just five years earlier can double the final corpus at the same monthly contribution, because each additional year multiplies the compounding base. A ₹5,000 monthly SIP at 12 percent grows to roughly ₹50 lakh after 20 years but to over ₹1.75 crore after 30 years.

SIPs also enforce financial discipline by automating investing. Regular monthly contributions remove the temptation to spend rather than save, and rupee-cost averaging means you automatically buy more units when prices are low and fewer when prices are high.

Use this calculator to experiment with different monthly amounts, return rates, and time horizons to understand how small changes in inputs create large differences in the final outcome.

Frequently asked questions

What is a SIP and how does the SIP calculator work?
A Systematic Investment Plan (SIP) lets you invest a fixed amount every month in a mutual fund. The SIP calculator uses the compound interest formula for periodic payments to project the future value of those monthly contributions, assuming a fixed annual return rate throughout the investment period.
What formula does the SIP calculator use?
The future value of a SIP is calculated as: FV = P × [(1 + r)ⁿ − 1] / r × (1 + r), where P is the monthly investment, r is the monthly interest rate (annual rate ÷ 12), and n is the number of months. This is the standard formula for the future value of an annuity due.
What is a realistic expected annual return for a SIP?
Equity mutual funds in India have historically delivered annualised returns of around 10 to 15 percent over long periods, though past performance does not guarantee future results. For conservative estimates, many financial planners use 10 to 12 percent per year. Debt funds typically return 6 to 8 percent annually.
How does compounding affect SIP returns over time?
Compounding means your returns also earn returns in subsequent months. Over a long horizon like 20 or 30 years, the compounding effect becomes dramatic. For example, a monthly SIP of ₹5,000 at 12 percent per year for 20 years grows to roughly ₹50 lakh, even though only ₹12 lakh was actually invested. The remaining ₹38 lakh comes entirely from compounding.
What is the difference between SIP and lump sum investment?
A SIP spreads purchases over time, which averages the cost per unit and reduces the impact of market volatility through rupee-cost averaging. A lump sum investment puts the entire amount to work immediately, which can be better if markets are expected to rise strongly, but carries more timing risk. SIPs are generally recommended for salaried investors who invest monthly from income.
Can I use this calculator for investments in currencies other than rupees?
Yes. The SIP formula is currency-agnostic. Simply enter your monthly investment in any currency and the result will be in the same currency. The calculator is labelled in rupees because SIPs are most commonly associated with Indian mutual funds, but the underlying mathematics applies to any regular monthly investment with compound growth.

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