SIP Calculator
Work out what a fixed monthly investment could grow to, showing the amount invested against the returns earned.
How it works
A SIP invests a fixed amount every month, so each instalment compounds for a different length of time. The first one has the full term to grow; the last has none. That is why the total is not simply the monthly amount times the return.
Because you buy at whatever the price is each month, you acquire more units when prices are low and fewer when they are high. This is rupee-cost or dollar-cost averaging — it smooths the entry price rather than improving the return.
The split between what you put in and what you earned is the figure worth watching. Early on, almost everything is your own money; over a long enough term, returns come to exceed contributions.
The formula
SIP maturity
FV = PMT × (((1 + i)^n − 1) ÷ i) × (1 + i)
i is the monthly rate, n the number of months.
Monthly rate
i = annual return ÷ 100 ÷ 12
Total invested
invested = PMT × n
Gain
gain = maturity value − invested
Worked examples
| Scenario | Working | Result |
|---|---|---|
| 5,000 a month at 12% for 10 years | 120 instalments | ≈ 1,161,000 from 600,000 invested |
| The same for 20 years | 240 instalments | Returns far exceed contributions |
| Skipping the first 5 years | Lost compounding time | Costs more than the payments missed |
When you'd use it
- Planning a monthly mutual fund investment
- Seeing what a small monthly amount becomes over a long term
- Comparing SIP against a lump sum
- Setting a monthly figure to reach a target
Common questions
Are SIP returns guaranteed?
No. The rate you type is an assumption. Market-linked investments fluctuate and can lose value, particularly over shorter periods. Treat the projection as one scenario among many, not an expected outcome.
Is a SIP better than investing a lump sum?
It depends on what markets do afterwards. A lump sum invested at the start has longer to compound and usually wins in a rising market; a SIP reduces the risk of committing everything at a peak. Most people use SIPs because they earn monthly, which is a practical reason rather than a mathematical one.
Does this account for fees or tax?
No. Fund expense ratios, exit loads and capital gains tax all reduce the real outcome. Subtract the expense ratio from your assumed return for a slightly more honest projection.