SIP Calculator
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month, turning small, regular contributions into a sizeable corpus over time. This SIP calculator projects that growth for you. Enter how much you invest each month, the return you expect, and how long you will stay invested, and it estimates your final corpus — split into the amount you put in and the returns compounding earns on top. SIPs suit salaried investors because they automate discipline and average out market ups and downs. The calculator makes the long-term magic of compounding tangible, showing how even a modest monthly SIP can grow substantially when given enough years.
Equity funds have historically returned 11–13% over the long term.
Total Value
₹23,23,391
Invested
₹12,00,000
Est. Returns
₹11,23,391
About the SIP Calculator
A SIP calculator estimates the maturity value of regular monthly investments compounded at an assumed annual rate. It treats each monthly contribution as earning returns from the date it is invested, so earlier instalments compound for longer than later ones.
Why it is useful
Most people underestimate how powerful time and compounding are. By showing the gap between what you invest and what you accumulate, a SIP calculator motivates you to start early and stay consistent. It also helps you reverse-engineer the monthly amount needed to reach a target corpus.
How the calculation works
The future value of a SIP is FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the monthly investment, i is the monthly rate (annual rate ÷ 12 ÷ 100), and n is the number of months. Each instalment grows for the remaining months, and the sum of all those growing instalments is your corpus.
Key inputs explained
- Monthly investment: The fixed amount you contribute every month.
- Expected return: The assumed annual return; equity funds have historically returned 11–13%.
- Time period: How many years you stay invested — longer is dramatically better.
Example calculation
Inputs
- Monthly investment
- ₹10,000
- Expected return
- 12% p.a.
- Period
- 15 years (180 months)
Calculation breakdown
- Monthly rate (i)
- 12 ÷ 12 ÷ 100 = 0.01
- Total invested
- ₹10,000 × 180 = ₹18,00,000
- FV formula
- P × ((1.01)^180 − 1) ÷ 0.01 × 1.01
You invest ₹18 lakh but end with about ₹50.5 lakh — roughly ₹32.5 lakh of that is returns. Most of the growth happens in the final years, which is why staying invested matters.
Benefits
- Builds wealth from small, automated monthly amounts.
- Averages your buy price across market highs and lows.
- Visualises the long-run power of compounding.
Limitations
- Assumes a constant return; real market returns fluctuate year to year.
- Does not deduct expense ratios, exit loads, or capital-gains tax.
- Past performance does not guarantee future returns.
Tips
- Start early — a few extra years can outweigh a larger monthly amount.
- Increase your SIP each year with a step-up to match income growth.
- Stay invested through downturns; that is when SIPs accumulate the most units.
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About this calculator
The SIP Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.