How is the SIP future value calculated?

It uses the future value of an annuity with monthly compounding. The monthly rate is your annual return divided by 12, and each instalment compounds for the months remaining until the end of the term.

Is the expected return guaranteed?

No. SIP returns depend on market performance. The figure is a projection based on the constant rate you enter and is not a promise of actual returns.

What return rate should I assume for a SIP?

For equity mutual funds many investors model 10–12% a year over the long term, while debt or hybrid funds are usually modelled lower at around 6–8%. Enter a conservative figure and compare it with an optimistic one to see the range.

What is the difference between invested amount and future value?

The invested amount is simply your monthly contribution multiplied by the number of months. The future value is that total plus the compounded growth, so the gap between them is your estimated gains.

Does the calculator account for inflation or taxes?

No. It shows the nominal projected value before inflation, fund expense ratios and capital-gains tax. Your real spending power and net return will be lower than the figure shown.

Can I use it for a lump-sum investment instead of monthly?

This tool is built for regular monthly contributions. For a one-off lump sum, use the future value or compound interest calculator, which compound a single principal instead of a stream of deposits.

Is my financial data sent anywhere?

No — every calculation runs entirely in your browser and nothing you type is uploaded.

SIP Calculator — Gera Tools

SIP calculator

A systematic investment plan (SIP) invests a fixed amount every month into a mutual fund or index fund. This calculator projects what that habit could grow to: enter your monthly contribution, an expected annual return and how many years you will invest, and it returns the projected future value, your total invested and the estimated gains. It is built for anyone planning long-term goals — retirement, a house deposit, a child’s education — who wants to see the effect of compounding before committing.

How it works

Each monthly instalment is treated as part of an annuity and compounded at a monthly rate. The calculator converts your annual return into a monthly rate i = annual% ÷ 12 ÷ 100, counts the periods n = years × 12, then applies the future-value-of-annuity formula:

FV = P × ((1 + i)^n − 1) ÷ i × (1 + i)

The (1 + i) factor gives every instalment a full period of growth. The total invested is simply P × n, and the estimated gains are FV − invested. If the rate is 0%, the future value is just the sum of contributions.

Example

Investing 500 a month for 10 years at an expected 12% annual return:

Periods n = 120, monthly rate i = 0.01
Future value ≈ 116,170
Total invested = 500 × 120 = 60,000
Estimated gains ≈ 56,170

So roughly half the final pot comes from compounding rather than your own deposits.

Monthly amount	Return	Years	Invested	Approx. future value
500	12%	10	60,000	116,000
500	12%	20	120,000	495,000
1,000	8%	15	180,000	346,000

All maths happens in your browser — no figures leave your device.