SIP Calculator
Calculate returns on your Systematic Investment Plan.
Investment Details
Year-wise Breakdown
| Year | Invested | Returns | Total Value | Growth |
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Calculate the estimated future value of your mutual fund investments using our free online SIP calculator. A Systematic Investment Plan (SIP) helps you build long-term wealth by investing a fixed amount every month.
What is a SIP?
A Systematic Investment Plan (SIP) is an investment method offered by mutual funds that allows you to invest a fixed amount of money at regular intervals (usually monthly) rather than making a single lump-sum investment.
How SIP Investing Works
When you invest via SIP, your fixed monthly contribution buys units of a mutual fund scheme on a specified date every month. When market prices are lower, your fixed amount buys more fund units. When market prices rise, your accumulated units grow in total value.
This regular disciplined investing approach helps average out purchase costs over time and allows your money to benefit from long-term compound growth.
SIP Calculation Formula
- FV = Future Value of Investment Corpus
- P = Monthly Investment Amount
- i = Monthly Rate of Return (Expected Annual Rate / 12 / 100)
- n = Total Number of Monthly Installments (Years × 12)
Invested Amount vs Capital Growth
Your final SIP corpus is made up of two distinct portions:
- Total Amount Invested: The sum of all monthly contributions made over the investment tenure.
- Estimated Returns: The wealth generated through compound growth on your regular contributions.
SIP Calculation Example
Scenario: Suppose you invest ₹5,000 per month in a mutual fund scheme for 10 years (120 months) with an expected annual return of 12.0%.
Inputs
- Monthly Contribution (P): ₹5,000
- Expected Annual Return: 12.0% p.a.
- Monthly Return Rate (i): 12 / (12 × 100) = 0.01
- Tenure (n): 10 years × 12 = 120 months
Calculation
- Formula: FV = 5,000 × [((1.01)^120 - 1) / 0.01] × 1.01
- Value of (1.01)^120 ≈ 3.300387
- Calculated Maturity Value ≈ ₹11,61,695
Result: Your total invested amount over 10 years is ₹6,00,000. Your estimated wealth gain is ₹5,61,695, bringing your estimated final portfolio value to ₹11,61,695.
Effect of Return Rate on Wealth Growth
The expected annual return rate impacts long-term wealth growth. On a ₹5,000 monthly SIP for 15 years (₹9,00,000 total invested):
- At 10.0% expected return, estimated maturity value is ₹20,89,647 (Gain = ₹11,89,647).
- At 12.0% expected return, estimated maturity value rises to ₹25,22,880 (Gain = ₹16,22,880).
Effect of Tenure on Compound Growth
Time is the most critical factor in compounding. On a ₹5,00,000 monthly SIP at 12% expected return:
- 10-Year Tenure: Total invested = ₹6,00,000; estimated maturity value = ₹11,61,695.
- 20-Year Tenure: Total invested = ₹12,00,000; estimated maturity value rises to ₹49,95,740.
Doubling the tenure from 10 to 20 years increases total investments by 2x, but grows the estimated corpus by over 4.3x.
How to Use a SIP Calculator
Four simple steps to calculate your estimated mutual fund SIP wealth:
- Set Monthly Investment: Input the amount you plan to invest every month.
- Input Expected Return Rate: Enter your assumed annual growth rate.
- Select Tenure: Choose your investment duration in years.
- Review Results: Instantly view total invested capital, estimated returns, and total projected wealth.
Things to Consider Before Starting a SIP
- Maintain Financial Consistency: Select a monthly investment amount that fits your regular income comfortably.
- Focus on Long-Term Goals: Mutual fund investments carry market risks; staying invested for longer periods helps smooth out market volatility.
- Review Periodically: Revisit your portfolio goals annually to ensure your monthly contributions align with your long-term plans.
Disclaimer
This SIP calculator provides estimated projections based on constant growth assumptions for educational purposes. Mutual fund investments are subject to market risks, and past performance is not a guarantee of future returns.