Free tool · Finance
SIP Calculator
Estimate future value of a monthly mutual fund SIP.
Future value
₹ 23,23,391
Invested
₹ 12,00,000
Wealth gain
₹ 11,23,391
Invested amount vs projected returns.
Frequently asked questions
What is SIP?+
SIP (Systematic Investment Plan) means investing a fixed amount every month in a mutual fund. It averages out market ups and downs and builds long-term wealth through compounding.
How is future value calculated?+
FV = P × ((1+i)^n − 1) / i × (1+i), where P is monthly amount, i is monthly return rate, and n is number of months. Assumes returns compound monthly.
Is the expected return guaranteed?+
No. Equity mutual funds don't guarantee returns. Historically, diversified Indian equity funds have delivered 10–14% over 10+ year periods, but past performance isn't a guarantee.
Should I do SIP or lump sum?+
SIP is ideal for salaried investors and volatile markets. Lump sum works when you have a large amount and markets are undervalued. Many investors combine both.
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Who should use SIP Calculator
- Business owners setting aside a fixed monthly amount outside the business
- Anyone comparing the effect of investing for 10 years versus 15
- People sizing a monthly amount against a specific future goal
How to use it, step by step
- Enter the monthly investment amount.
- Enter an expected annual return, and test a conservative figure alongside an optimistic one.
- Enter the duration in years.
- Compare invested amount, estimated returns and final value.
Future value of a monthly series
Each instalment compounds for a different length of time, so the standard future-value-of-an-annuity formula is used with a monthly rate. Because early instalments compound longest, starting sooner matters more than investing more later.
i = Annual return / 12 / 100 Future value = P x ((1 + i)^n - 1) / i x (1 + i) Invested = P x n; Estimated returns = Future value - Invested
Worked example: Rs 10,000 a month at 12%
- 10 years: invested Rs 12,00,000, estimated value about Rs 23,00,000
- 15 years: invested Rs 18,00,000, estimated value about Rs 50,00,000
- The extra five years added roughly Rs 27,00,000 for Rs 6,00,000 more invested
Compounding rewards duration far more than it rewards size. Five extra years did more than doubling the monthly amount would have done over the shorter period.
Common mistakes to avoid
- Treating the assumed return as guaranteed.
- Ignoring inflation — a future value should be judged in today's purchasing power.
- Excluding expense ratios, exit loads and taxes on gains.
- Stopping contributions during a market fall, which is when units are cheapest.
How to read the result
Use the output as a planning range, not a forecast. Run a pessimistic case at a much lower return and check whether the goal still holds; if it does not, adjust the amount or the timeline rather than the assumption.
Frequently asked questions
What return should I assume?
There is no correct answer. Model a conservative and an optimistic scenario and plan against the conservative one.
Are taxes included?
No. Capital gains tax and fund costs are not modelled and will reduce the realised amount.
Disclaimer: This is an arithmetic projection, not investment advice or a return guarantee. Market investments carry risk, including loss of capital. Consult a registered investment adviser for personal recommendations.