📊 SIP Calculator
How It Works
Calculate returns on Systematic Investment Plans (SIP) for mutual funds and regular investments. Use SIP Calculator to explore how the main financial inputs change the payment, cost, return, or cash-flow result before making a decision.
The result is most useful when the inputs match the definitions used by this calculator. For this tool, the underlying method is: Future Value = P × [(1 + r)^n - 1] / r × (1 + r), where P = monthly investment, r = monthly rate, n = months. Compare the output with the worked example, then change one meaningful input at a time to see how the result responds.
What Is SIP?
A SIP, or Systematic Investment Plan, is a method of investing a fixed amount at regular intervals. A SIP calculation estimates how recurring contributions could grow under an assumed rate of return.
How to interpret the result: Compare the output with the worked example and with another scenario using the same definitions. For this calculator, the key relationship is Future Value = P × [(1 + r)^n - 1] / r × (1 + r), where P = monthly investment, r = monthly rate, n = months.
How to Calculate SIP
The page uses the method shown in the Formula section: Future Value = P × [(1 + r)^n - 1] / r × (1 + r), where P = monthly investment, r = monthly rate, n = months. Keep the inputs in matching units, then change one meaningful input at a time when testing scenarios.
Important limitation: The result is a projection, not a promised return. Actual performance, contribution dates, fees, taxes, and market conditions can change the outcome. Review the sip inputs and units before relying on the result.
How SIP projections work
A SIP projection estimates future value from recurring contributions, an assumed rate of return, contribution frequency, and time. The assumed return is a model input, not a guaranteed outcome.
SIP vs lump-sum investing
A SIP spreads contributions over time, while a lump sum invests a larger amount at once. The two approaches can produce different outcomes because money is invested for different lengths of time and market returns vary.
Step-up and inflation scenarios
Increasing contributions over time can change the projected corpus significantly. An inflation-adjusted view can also help distinguish a future nominal amount from its approximate purchasing power.
When to Use This Calculator
Use SIP Calculator to explore how the main financial inputs change the payment, cost, return, or cash-flow result before making a decision.
Practical tip: For this SIP Calculator, change one financial assumption at a time—such as the rate, amount, contribution, fee, or tenure shown in the inputs—so you can see which factor drives the result.
Formula
Future Value = P × [(1 + r)^n - 1] / r × (1 + r), where P = monthly investment, r = monthly rate, n = months
Example
Investing ₹5,000 monthly at 12% annual return for 10 years yields approximately ₹11,61,695. Use the calculator to test a second scenario and see how the result changes when one important assumption is adjusted.