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.
Worked examples
Investing 500 a month for 10 years at an expected 12% annual return (illustrative):
- Periods
n = 120, monthly ratei = 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 |
What rate should you use?
The calculator does not assume any rate — that is intentional. Choosing a rate requires judgement:
- Equity mutual funds (long-term, 10+ years): Many investors use 10–12% as a planning assumption. Past index returns in markets like India’s Nifty 50 have historically been in this range over long periods, but past returns do not guarantee future results.
- Balanced or hybrid funds: 7–9% is a more conservative planning range.
- Debt or liquid funds: 5–7% is often used for short-term goals where capital preservation matters.
Run the calculator at two rates — an optimistic and a conservative one — to see how much the outcome changes. The gap shows you how much of your goal rests on return assumptions versus how much is under your control through contribution size.
The power of the start date
One insight the table above reveals: time is more powerful than return rate. Doubling the tenure from 10 to 20 years at the same 12% rate turns a 116,000 outcome into roughly 495,000 — a 4× jump from 2× the years. Starting even a small SIP early is usually more impactful than waiting to afford a larger one.
What the calculator does not include
This tool shows nominal projected value. It excludes inflation (which erodes real purchasing power), fund expense ratios (which reduce net return), and capital gains tax on redemption (which reduces what you actually keep). Your real, after-tax, after-fee outcome will be lower than the headline future value shown. Use this as a directional planning tool, not a guarantee.
All maths happens in your browser — no figures leave your device.