SIP Calculator
Calculate the future value of your Systematic Investment Plan.
Invested Amount
₹6,00,000
Est. Returns
₹5,61,695
Total Value
₹11,61,695
How the SIP Calculator works
Reviewed by Dinesh Babu · Last updated July 2026
A SIP (Systematic Investment Plan) lets you invest a fixed amount in a mutual fund every month. This calculator estimates the maturity value of those regular investments based on an expected annual return, showing how compounding turns modest monthly contributions into a large corpus over time.
Enter your monthly investment, the investment period in years, and an expected rate of return. The calculator shows the total you invested, the estimated returns earned, and the final corpus, plus a chart of how it builds up year by year. The key insight it reveals is that most of your final wealth comes not from what you put in, but from returns compounding on earlier returns, which is why time in the market matters more than the amount.
Remember that the return you enter is an assumption, not a promise. SIPs invest in market-linked mutual funds, so the actual outcome will be higher or lower than the projection.
SIP maturity formula
FV = P × [ ((1 + i)ⁿ − 1) / i ] × (1 + i)
P = monthly investment, i = monthly rate (annual ÷ 12 ÷ 100), n = number of months.
Why SIP suits salaried investors
Because you invest the same rupee amount every month regardless of price, you automatically buy more mutual-fund units when markets are low and fewer when they are high. This is rupee-cost averaging, and it removes the impossible job of timing the market.
A SIP also converts investing into a habit rather than a decision you have to make each month. For someone with a steady salary, that automation is often worth more than any clever strategy.
What actually drives the final number
- Time: the biggest lever. Starting five years earlier can beat investing a much larger amount later.
- Return rate: a small change in assumed return compounds into a large difference over decades, so be realistic.
- Consistency: skipping instalments during market falls quietly destroys the averaging benefit that makes SIPs work.
₹10,000/month for 15 years at 12%
You invest ₹18 lakh in total (₹10,000 × 180 months) and end with roughly ₹50.4 lakh. About ₹32 lakh of that is estimated compounding gains, not your own money, showing how the returns eventually dwarf the contributions.
The cost of starting late
The same ₹10,000/month at 12% grows to about ₹1 crore over 20 years but only ₹50.4 lakh over 15 years. Five extra years roughly doubles the corpus, even though you invested only ₹6 lakh more. That gap is the price of delay.
Common mistakes to avoid
- Assuming an unrealistic return like 15 to 18 percent. Modelling equity at around 12 percent long-term keeps your plan honest.
- Stopping the SIP when markets crash, which is exactly when your fixed amount buys the most units cheaply.
- Treating the projected figure as guaranteed. It is an estimate that will vary with the market.
- Investing without a goal, so there is no anchor for how much or how long to invest.
- Ignoring expense ratios and fund quality, which quietly reduce real long-term returns.
Frequently asked questions
How are SIP returns calculated?+
Each monthly instalment is compounded until the end of the period, then all instalments are summed. This calculator uses the standard future-value-of-an-annuity formula shown above, assuming a constant monthly return.
Are SIP returns guaranteed?+
No. SIPs invest in mutual funds whose returns depend on the market. The expected return you enter is an assumption, not a promise, and actual returns will be higher or lower and can even be negative over short periods.
Is SIP better than a lumpsum investment?+
SIPs spread your investment over time and average out market ups and downs, which suits regular earners. A lumpsum can do better if invested before a market rise but carries more timing risk. Use our Lumpsum Calculator to compare the two side by side.
What is a good expected return to assume?+
For long-term equity mutual funds, modelling around 12 percent per year is a reasonable long-run assumption, while debt funds are lower. Using a conservative figure gives a more realistic plan and reduces the risk of under-saving.
Can I lose money in a SIP?+
Yes, in the short term, because markets fluctuate and your units can be worth less than you paid. Historically, longer holding periods of seven years or more have reduced the chance of loss, but there is no guarantee.
How much should I invest in a SIP?+
Work backwards from a goal rather than picking a round number. Decide the target amount and time frame, then use our Goal SIP Calculator to find the exact monthly figure, and increase it over time as your income grows.
Does increasing my SIP each year help much?+
Substantially. Even a 10 percent annual step-up can nearly double your final corpus over 20 years compared with a flat SIP, because the larger contributions land in the high-compounding later years. Our Step-up SIP Calculator shows the difference.
What happens if I stop my SIP early?+
Your invested units stay in the fund and keep growing or falling with the market, but you lose the future contributions and the compounding they would have generated. Pausing during a downturn is especially costly because you miss buying units cheaply.