Finance
SIP Calculator
Project what a monthly systematic investment plan could grow to over time, and how much of it comes from returns rather than your own contributions.
Updated 24 Sep 2026
Investing 5,000.00 a month for 10 years at an assumed 12.00% annual return produces about 1,161,695.38. You contribute 600,000.00 and the remaining 561,695.38 comes from returns. Market returns are not guaranteed — this is a projection, not a forecast.
Enter your monthly investment, an assumed annual return and the number of years. The calculator projects the future value, separates what you contributed from what compounding added, and shows the multiple on your money.
What is the SIP Calculator?
A systematic investment plan is a fixed monthly contribution into a fund. Because each instalment is invested at a different price, you buy more units when prices are low and fewer when they are high — which smooths out entry timing without needing to predict anything.
This calculator projects growth using a constant assumed return. Real markets do not move in a straight line, so treat the output as a planning figure, not a promise.
How to use the SIP Calculator
- Enter the amount you plan to invest each month.
- Enter an expected annual return. For diversified equity funds, 10–12% is a common long-run planning assumption; use a lower figure for debt or hybrid funds.
- Enter how many years you will keep investing.
Formula
P = monthly investment
i = monthly rate = annual return ÷ 12 ÷ 100
n = number of monthly instalments
The trailing (1 + i) term treats each instalment as invested at the start of the month rather than the end. This is the annuity-due form, which matches how most SIPs actually work, and it produces a slightly higher figure than the ordinary-annuity version some calculators use.
How the calculation works
Each monthly instalment compounds for a different length of time. Your first contribution in a ten-year plan compounds for 120 months; your last compounds for one. The formula sums all of those individual growth paths in a single expression.
The effect is heavily weighted towards early contributions, which is why starting sooner matters far more than investing more later.
Worked example
Investing ₹5,000 a month for 10 years at an assumed 12% annual return:
- Monthly rate i = 12 ÷ 12 ÷ 100 = 0.01
- Instalments n = 120
- Total invested = ₹6,00,000
- Projected value = ₹11,61,695
Roughly ₹5,61,695 of that comes from returns rather than contributions — slightly more than you put in yourself.
Uses and benefits
- Set a realistic monthly figure for a goal with a known deadline.
- See how sensitive the outcome is to starting five years earlier.
- Compare the same contribution under conservative and optimistic return assumptions.
Frequently asked questions
There is no correct answer, only a defensible one. Long-run Indian equity index returns have historically fallen in the 10–13% range over multi-decade periods, but with severe drawdowns along the way. Many planners use 10–12% for equity funds and 6–8% for debt. Run the calculation at several rates rather than trusting one.
No. This is arithmetic on an assumption you supplied, not a forecast. Actual returns vary year to year and can be negative for extended periods. The projection also excludes expense ratios and taxes.
Most differences come from whether the instalment is treated as invested at the start or end of each month. This calculator uses the start-of-month (annuity-due) convention, which matches typical SIP mandates and gives a marginally higher figure.
References
Mutual fund returns are not guaranteed and past performance does not predict future results. This projection assumes a constant return, which no real fund delivers. It also ignores expense ratios, exit loads and taxation, all of which reduce what you actually receive.
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