SIP Calculator
Estimate returns on monthly SIP investments with a year-by-year growth chart.
For illustrative purposes only. Mutual fund investments are subject to market risk. Returns are not guaranteed. Consult a SEBI-registered investment advisor before investing.
What is SIP Calculator?
SIP Calculator (Systematic Investment Plan Calculator) shows how a fixed monthly investment grows over time, assuming a constant annual return. Enter your monthly SIP amount, the expected annual return rate, and the investment period, and the calculator shows your total invested amount, estimated gains, and final corpus.
A year-by-year bar chart visualises how your wealth compounds — the green portion shows the money you put in, while the amber portion shows the returns generated. This makes the power of compounding immediately visible.
All calculations use the standard SIP future value formula: FV = P × [(1+r)^n − 1] / r × (1+r), where r is the monthly return rate and n is the number of months.
Common Use Cases
- Planning how much to invest monthly to reach a financial goal
- Visualising the power of compounding over 10, 20, or 30 years
- Comparing short vs long investment horizons
- Estimating retirement corpus from monthly savings
- Teaching children or students about long-term investing
How to Use SIP Calculator
- Set your monthly SIP amount using the slider.
- Enter the expected annual return rate (historical equity mutual fund returns in India range from 10–15%).
- Select the investment period in years.
- The invested amount, estimated returns, and total corpus update instantly.
- Read the bar chart to see how your wealth builds year by year.
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FAQ
What is SIP and how does it work?
SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly — usually monthly — in a mutual fund. Each instalment buys units at the current NAV. Over time, you benefit from rupee cost averaging (buying more units when prices are low) and compounding returns.
What return rate should I use?
Historical long-term average returns for equity mutual funds in India have been approximately 12–15% per annum, though past returns do not guarantee future performance. Debt funds typically return 6–8%. Use a conservative estimate for planning to avoid overestimating your corpus.
Are mutual fund returns guaranteed?
No. Mutual fund returns, especially for equity funds, are subject to market risk and are not guaranteed. The return rate you enter is an assumption for planning purposes. Actual returns will vary based on market conditions.
What is the difference between SIP and lump sum investment?
A lump sum means investing all your money at once. SIP means investing smaller amounts regularly. SIP reduces timing risk through rupee cost averaging and is better suited for salaried investors. Lump sum can outperform SIP if markets are expected to rise consistently.
Does this calculator account for inflation?
No — the calculator shows nominal (not inflation-adjusted) returns. To estimate the real purchasing power of your corpus, subtract the expected inflation rate (typically 5–6% in India) from your expected return rate when doing long-term planning.