SIP Calculator

SIP is calculated as a future-value annuity-due (since each month’s investment is assumed to be made at the start of the month). Let i = annual rate ÷ 12 ÷ 100 (the monthly rate) and n = years × 12 (total number of monthly installments). Then:

FV = P × [ ((1 + i)ⁿ − 1) ÷ i ] × (1 + i), where P is your fixed monthly investment. Total Invested = P × n, and Wealth Gained = FV − Total Invested.

What SIP means: a Systematic Investment Plan is a disciplined way of investing a fixed amount into a mutual fund scheme every month, rather than investing a large sum all at once. Because you invest the same rupee amount regardless of whether the market is up or down, you automatically buy more units when prices are low and fewer units when prices are high — a concept known as rupee-cost averaging — which smooths out the impact of short-term market volatility on your average purchase price over time.

Important — this is a projection, not a promise: the return percentage you enter is an assumption based on historical averages or your own expectation. Mutual fund returns are market-linked and not guaranteed — actual returns can be higher or lower than what you assume here, and past performance is never a reliable indicator of future results. Use this calculator to plan and compare scenarios, not as a promised outcome.

Worked example: investing ₹10,000 every month at an assumed 12% annual return for 10 years gives i = 0.01 and n = 120 months. Plugging into the formula: FV ≈ ₹23.23 lakh. You would have invested a Total of ₹10,000 × 120 = ₹12 lakh, so the projected Wealth Gained is roughly ₹11.23 lakh — illustrating how compounding on a growing base can roughly double your invested amount over a decade at this assumed rate.

SIP vs. lumpsum investing: a lumpsum investment puts your entire amount into the market on day one, so its entire value compounds from the start — this tends to perform better in a rising market but exposes you to full timing risk. A SIP spreads your investment across many months, reducing timing risk and matching how most salaried investors actually earn and save, at the cost of not having your full corpus invested from day one.