What is a SIP calculator?
A SIP (Systematic Investment Plan) calculator estimates how much your monthly mutual fund investments could grow to over time. SIP is a way of investing a fixed amount at regular intervals—usually monthly—not a separate product from mutual funds.
You enter your monthly contribution, expected annual return, and investment period. The tool shows total invested amount, estimated returns, and maturity value. Actual fund returns vary with markets, fees, and timing; treat the output as a planning estimate, not a promise.
How can a SIP return calculator help you?
Most people use a SIP calculator to answer one of three questions: how much to invest each month for a target corpus, what a current SIP might be worth at retirement, or how a small change in tenure or return rate shifts the final number.
- Fix a monthly SIP amount before you start a mandate.
- See total capital deployed versus estimated gains over the full tenure.
- Compare scenarios—extra ₹2,000 per month or five more years of investing—without redoing the math by hand.
How do SIP calculators work?
This calculator uses the standard SIP future-value formula for investments made at the start of each month (annuity due). The monthly rate is derived from the annual return using compound conversion—not by dividing the annual rate by 12.
M = P × ({[1 + i]^n – 1} / i) × (1 + i)
- M
- Maturity amount
- P
- Monthly investment
- n
- Number of monthly payments
- i
- Effective monthly return
Monthly return: i = (1 + annual return)^(1/12) − 1
Worked example
Invest ₹1,000 per month for 12 months at 12% annual return. The effective monthly rate is about 0.95% (not 1%), because returns compound. Using the formula above, the maturity value is roughly ₹12,766 in a year—about ₹766 above the ₹12,000 you put in.
Dividing 12% by 12 and using 1% per month would overstate returns. Compounding 0.95% for twelve months lands back on 12% annually; 1% monthly would imply more than 12% per year.
How to use this SIP calculator
Set your monthly investment in rupees, enter an expected annual return (p.a.), and choose the time period in years. Results update as you move the sliders or edit the number fields.
For a one-time lump sum instead of monthly SIPs, use the lumpsum calculator. If your SIP increases every year, try the step-up SIP calculator.
What this calculator does not include
Real mutual fund returns are net of expense ratio, possible exit load, and tax on gains. Market returns are not constant year to year. This tool assumes a steady annual return for the entire tenure—useful for planning, but not a substitute for scheme factsheets or professional advice.
Frequently asked questions
Is SIP the same as a mutual fund?
No. A mutual fund is the investment product; SIP is a method of investing in it at fixed intervals. You can also invest via a one-time lumpsum.
Why not divide the annual return by 12?
Returns compound. The correct monthly equivalent is (1 + annual rate)^(1/12) − 1. Simple division inflates long-term projections.
Are the results guaranteed?
No. Figures are illustrative estimates based on your inputs. Past or projected performance is not a guarantee of future results.