SIP Calculator
Calculate the future value of your monthly SIP investment, total invested amount and estimated returns.
Calculate SIP Returns
Total Invested Amount
Estimated Returns
Future Value
Quick Summary
SIP (Systematic Investment Plan) lets you invest a fixed amount every month into mutual funds or similar instruments.
This calculator estimates the future value of your investments based on a fixed monthly contribution, expected annual return and investment duration.
How to Use This Calculator
- Enter your planned monthly investment amount.
- Enter the expected annual return rate and investment duration in years.
- Click Calculate to see your projected maturity value.
What is SIP?
A Systematic Investment Plan (SIP) is an investment method where a fixed amount of money is invested at regular intervals, typically monthly, into mutual funds or similar instruments. SIPs benefit from the power of compounding and rupee cost averaging over time.
This calculator helps estimate the future value of a SIP investment based on the monthly contribution amount, the expected annual rate of return, and the total investment duration in years.
Formula
Future Value = P × [((1 + r)^n − 1) ÷ r] × (1 + r)
Where P = Monthly Investment Amount, r = Monthly Rate of Return (Annual Rate ÷ 12 ÷ 100), and n = Total Number of Months (Years × 12)
Total Invested Amount = P × n
Estimated Returns = Future Value − Total Invested Amount
Worked Example
Monthly Investment = ₹5,000
Expected Annual Return = 12%
Investment Duration = 10 Years (120 Months)
Monthly Rate = 12 ÷ 12 ÷ 100 = 0.01
Future Value ≈ ₹1,161,695
Total Invested Amount = ₹600,000
Estimated Returns ≈ ₹561,695
Benefits
- Estimate the future value of regular investments.
- Understand the power of compounding over time.
- Compare different investment durations and return rates.
- Plan long-term financial goals systematically.
- See total invested amount versus estimated gains.
Practical Use Cases
- Estimating how a small, regular monthly investment could grow over a few years of college.
- Comparing different monthly investment amounts to see which fits your budget and goals.
Common Mistakes to Avoid
- Entering a monthly return rate instead of the expected annual rate — SIP returns are almost always quoted annually.
- Treating the projected value as guaranteed — mutual fund returns fluctuate with the market and this is an estimate, not a promise.
- Comparing SIP returns directly to a fixed deposit's rate without accounting for the higher risk involved.
Frequently Asked Questions
The expected annual return rate is an estimate of how much your investment may grow per year, based on historical performance of similar investments. Actual returns can vary and are not guaranteed.
No. This calculator provides an estimate based on the inputs you provide. Actual investment returns depend on market performance and other factors, and may differ from the calculated value.
Longer investment durations generally allow more time for compounding to take effect, which can significantly increase the proportion of returns relative to the amount invested.