A SIP (Systematic Investment Plan) lets you invest a fixed amount in a mutual fund every month, usually through an automatic bank debit. Because you invest regularly, you buy more units when prices are low and fewer when prices are high. Over long periods, the growth on your earlier investments starts earning growth of its own. This is compounding, and it is why time matters more than the amount.
How to use the SIP calculator
- Enter your monthly investment.
- Enter the expected yearly return. This is an assumption, not a promise.
- Choose the time period in years.
- Optional: add a yearly step-up if you plan to raise your SIP every year, for example by 10% when your salary increases.
- Optional: set the expected inflation to see what the final amount is worth in today's money.
The calculator shows the total amount invested, the estimated gains, the estimated final value and its value in today's money. Open the year-wise breakdown to see the value at the end of each year.
SIP formula
FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i)- P = monthly investment
- i = monthly return = yearly return ÷ 12 ÷ 100
- n = number of months
The formula assumes you invest at the start of every month, like most fund-house calculators. With a step-up, the monthly amount rises every 12 months, so the calculator adds up the growth month by month.
Example
You invest ₹5,000 every month for 10 years and assume a 12% yearly return.
- Total invested = ₹5,000 × 120 = ₹6,00,000
- Estimated value = ₹11,61,695
- Estimated gains = ₹5,61,695
Now add a 10% yearly step-up (₹5,000 in year 1, ₹5,500 in year 2, and so on). You invest ₹9,56,245 in total and the estimated value becomes ₹16,87,163. See the step-up SIP calculator for more on this.
What your SIP is worth in today's money
Prices rise every year, so ₹11.6 lakh ten years from now will not buy what ₹11.6 lakh buys today. The calculator also shows the value in today's money. At 6% inflation, the ₹11,61,695 from the example above is worth about ₹6,48,685 in today's rupees. Set inflation to 0 if you only want the plain future value.
Have a goal amount in mind instead? The goal SIP calculator works backwards and tells you the monthly SIP you need.
Why starting early matters
₹5,000 a month at an assumed 12% yearly return:
| Time period | Total invested | Estimated value |
|---|---|---|
| 5 years | ₹3,00,000 | ₹4,12,432 |
| 10 years | ₹6,00,000 | ₹11,61,695 |
| 15 years | ₹9,00,000 | ₹25,22,880 |
| 20 years | ₹12,00,000 | ₹49,95,740 |
| 25 years | ₹15,00,000 | ₹94,88,175 |
| 30 years | ₹18,00,000 | ₹1,76,49,569 |
Going from 20 to 30 years adds only ₹6 lakh of investment, but the estimated value more than triples.
Things to keep in mind
- Returns are not guaranteed. Equity mutual funds rise and fall with the market. A fund can give much less than 12% in some years, or even negative returns.
- Try a cautious rate too. Run the calculator again with a lower return to see a conservative case.
- Taxes and inflation are not included. Gains from mutual funds can be taxable when you redeem, and rising prices reduce what the final amount can buy.
- Check the expense ratio. Direct plans usually have lower costs than regular plans, which leaves more of the return with you.
FAQ
Is the SIP return shown here guaranteed?
No. The result is an estimate based on the return you enter. Actual mutual fund returns depend on the market and can be higher or lower.
What return rate should I assume?
It depends on the type of fund. Many people use 10–12% for long-term equity funds and 6–7% for debt funds as planning assumptions. Past returns do not guarantee future results.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly investment by a fixed percentage every year. It lets your investments grow along with your income and can make a large difference to the final value.
Can I stop or pause a SIP?
Yes. Most mutual funds let you stop or pause a SIP at any time without a penalty. ELSS (tax-saving) funds lock in each instalment for 3 years, and some funds charge an exit load if you redeem very early.
SIP or lumpsum: which is better?
A SIP suits regular monthly income and spreads your entry over time. A lumpsum puts all the money to work at once. Compare both with our lumpsum calculator.