SIP Calculator
A systematic investment plan (SIP) invests a fixed amount at regular intervals, usually every month. This calculator estimates what those instalments could be worth at the end of your investment period if they earn a steady return.
Results
Estimated value
₹50,45,760
- Amount invested
- ₹18,00,000
- Estimated returns
- ₹32,45,760
Investing ₹10,000 a month for 15 years at 12% a year could grow to about ₹50,45,760, of which ₹32,45,760 would be returns.
Invested amount vs estimated returns
- Invested amount₹18,00,000 (35.7%)
- Estimated returns₹32,45,760 (64.3%)
Growth over time
- Invested amount
- Estimated returns
Growth by year (15 rows)
| Period | Invested | Returns | Total value |
|---|---|---|---|
| Year 1 | ₹1,20,000 | ₹8,093 | ₹1,28,093 |
| Year 2 | ₹2,40,000 | ₹32,432 | ₹2,72,432 |
| Year 3 | ₹3,60,000 | ₹75,076 | ₹4,35,076 |
| Year 4 | ₹4,80,000 | ₹1,38,348 | ₹6,18,348 |
| Year 5 | ₹6,00,000 | ₹2,24,864 | ₹8,24,864 |
| Year 6 | ₹7,20,000 | ₹3,37,570 | ₹10,57,570 |
| Year 7 | ₹8,40,000 | ₹4,79,790 | ₹13,19,790 |
| Year 8 | ₹9,60,000 | ₹6,55,266 | ₹16,15,266 |
| Year 9 | ₹10,80,000 | ₹8,68,215 | ₹19,48,215 |
| Year 10 | ₹12,00,000 | ₹11,23,391 | ₹23,23,391 |
| Year 11 | ₹13,20,000 | ₹14,26,148 | ₹27,46,148 |
| Year 12 | ₹14,40,000 | ₹17,82,522 | ₹32,22,522 |
| Year 13 | ₹15,60,000 | ₹21,99,311 | ₹37,59,311 |
| Year 14 | ₹16,80,000 | ₹26,84,180 | ₹43,64,180 |
| Year 15 | ₹18,00,000 | ₹32,45,760 | ₹50,45,760 |
Show the calculation steps
- Monthly rate i = 12% ÷ 12 = 1%.
- Number of monthly investments n = 15 years = 180.
- FV = P × ((1 + i)^n − 1) ÷ i × (1 + i) = ₹50,45,760.00.
- Amount invested = P × n = ₹10,000 × 180 = ₹18,00,000.
- Estimated returns = FV − amount invested = ₹50,45,760 − ₹18,00,000 = ₹32,45,760.
- Market-linked returns are not guaranteed. This projection assumes the same return every month.
What is a SIP?
A SIP lets you invest a small, fixed amount regularly instead of a large lump sum. It is widely used for mutual funds because it builds a habit of investing and spreads your purchases across different market levels.
Because each instalment is invested for a different length of time, the earliest ones have the longest to grow, which is why the returns rise so quickly in the later years.
How the estimate works
The calculator treats each monthly instalment as earning the same monthly return from the day it is invested until the end of the period, with instalments made at the start of each month. The formula sums all these growing instalments.
Real market returns move up and down. The output is a projection based on the single return you enter, so run it with a few different returns to see a range of outcomes.
Ways to improve the outcome
- Start early: the length of the investment period has the biggest effect.
- Increase the amount when your income rises, even by a small percentage.
- Stay invested through market dips instead of stopping your SIP.
Formula
FV = P × ((1 + i)^n − 1) ÷ i × (1 + i)
Amount invested = P × n
Estimated returns = FV − Amount invested
Where:
- FV
- = Future value of the SIP
- P
- = Amount invested each month
- i
- = Monthly rate of return (annual rate ÷ 12 ÷ 100)
- n
- = Number of monthly investments
Example calculation
₹10,000 a month at 12% for 15 years
Inputs
- Monthly Investment
- ₹10,000
- Expected Annual Return
- 12 %
- Investment Period
- 15 years
Result
- Estimated value
- ₹50,45,760
- Amount invested
- ₹18,00,000
- Estimated returns
- ₹32,45,760
Step-by-step
- Monthly rate i = 12% ÷ 12 = 1%.
- Number of monthly investments n = 15 years = 180.
- FV = P × ((1 + i)^n − 1) ÷ i × (1 + i) = ₹50,45,760.00.
- Amount invested = P × n = ₹10,000 × 180 = ₹18,00,000.
- Estimated returns = FV − amount invested = ₹50,45,760 − ₹18,00,000 = ₹32,45,760.
Important notes
- Returns on market-linked investments are not guaranteed and can be negative. The result is only an estimate.
- Taxes, fund expenses, exit loads and inflation are not included.
- This calculator assumes instalments at the start of each month. Investing at the end of each month gives a slightly lower value.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How is SIP return calculated?
FV = P × ((1 + i)^n − 1) ÷ i × (1 + i), where P is the monthly amount, i is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months. The estimated returns are the future value minus the total amount invested.
What return should I enter?
Use a conservative estimate rather than the best past result. Past performance does not guarantee future returns, so try several values to see a range of outcomes.
Is a SIP better than a lump sum?
Neither is always better. A lump sum has more time in the market if you have the money now, while a SIP suits regular income and reduces the risk of investing everything at a bad time.
Does the SIP calculator account for step-ups or inflation?
No. It assumes the same amount every month and a constant return. Inflation reduces what the future amount can buy, so consider it separately when planning a goal.
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