Plan your financial goals by calculating the future value of your SIP investments.
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Est. Returns
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This SIP calculator projects the future value of a monthly SIP: enter the monthly amount, an expected annual return and the number of years (plus an optional yearly step-up), and it compounds each instalment monthly at the annual rate ÷ 12, assuming you invest at the start of each month. The result is an estimate based on the return you enter, not a guaranteed amount.
A Systematic Investment Plan (SIP) is one of the most popular ways for individuals in India to invest in mutual funds over the long term. It lets you invest a fixed amount at regular intervals, typically monthly. Two ideas explain how a SIP works: rupee cost averaging and compounding. This guide explains what a SIP is, how it works, and how to use the mutual fund calculator to plan your financial goals.
Follow these steps:
A SIP is not an investment product itself; it is a method of investing in mutual funds. Instead of investing a large lump sum at once, you invest a smaller, fixed amount on a regular basis (usually monthly). This disciplined approach has two major advantages.
The market is volatile; it goes up and down. When you invest a fixed amount every month, you automatically buy more units of a mutual fund when the price (Net Asset Value or NAV) is low, and fewer units when the price is high. Over time, this averages out your purchase cost and removes the need to "time the market." It does not guarantee a profit or protect against a loss in a falling market.
In a growth option of a mutual fund, gains stay invested, so the returns you earn on your SIP also start earning their own returns. The longer you stay invested, the more powerful this effect becomes. A SIP returns calculator shows how, over 15-20 years at an assumed return of around 12% a year, the "Estimated Returns" component can become larger than the "Invested Amount" itself.
A standard SIP involves investing the same amount every month. A Step-up SIP is a strategy where you increase your monthly investment amount by a fixed percentage each year. It is useful because:
Our calculator's "Annual Step-up" field lets you see the difference an annual increase makes to your final value.
For a fixed monthly SIP, the calculator uses the future value formula for an investment made at the start of every month and compounded monthly:
M = P × [((1 + i)^n − 1) / i] × (1 + i)
Example: ₹5,000 a month for 10 years at 12% a year gives i = 0.01 and n = 120. The maturity value is about ₹11,61,695: ₹6,00,000 invested plus ₹5,61,695 in estimated returns.
With an annual step-up, the monthly amount rises by your step-up percentage at the start of each new year and the same monthly compounding is applied.
The calculator's mathematical formula is accurate. However, the result is a projection based on the Expected Return Rate you enter. Real-world mutual fund returns are not guaranteed and fluctuate from year to year, while the calculator assumes the same return every month. It also ignores taxes and exit loads, so enter a return net of fund expenses. Use it for estimation and planning, not as a guarantee of future returns.
For long-term investments in equity mutual funds, 10-12% a year is a commonly used planning assumption, but actual returns can be lower or higher. Trying a lower rate as well shows a more cautious outcome. Debt funds usually have lower expected returns than equity funds.
Yes, this online SIP tool is free to use, with no limits. It runs in your browser.
No. This tool only handles monthly investments and has no lumpsum field. For a one-time investment, use a compound interest calculator with your lumpsum as the principal.
A Systematic Investment Plan is a disciplined way to invest regularly over the long term. A SIP calculator helps you see how the monthly amount, expected return, time period and step-up change the projected value, so you can set a realistic goal. Mutual fund investments are subject to market risk, so treat the result as an estimate.