Estimate how much your monthly mutual fund SIP could grow to. Enter your monthly investment, an expected annual return and the number of years to see your maturity value, invested amount and estimated returns. A SIP (Systematic Investment Plan) lets you invest a fixed sum every month, so your money benefits from rupee-cost averaging and long-term compounding.
Estimated on the return rate you enter. Actual mutual fund returns are market-linked and not guaranteed.
How SIP returns are calculated
A SIP invests a fixed amount every month, and each instalment compounds for the remaining months until maturity. The calculator uses the standard future value of a recurring investment formula:
M = P × [ ((1 + i)n − 1) ÷ i ] × (1 + i)
Where:
- M — Maturity amount, the estimated value at the end of the period
- P — The amount you invest each month
- i — Monthly rate of return = annual return ÷ 12 ÷ 100
- n — Total number of monthly instalments = years × 12
The final (1 + i) term assumes each SIP is invested at the start of the month. If the expected return is 0%, the formula simplifies to M = P × n — you simply get back what you put in.
Worked example
Suppose you invest ₹5,000 every month for 10 years at an expected 12% annual return. Here is how the numbers work out:
- Monthly investment: P = ₹5,000
- Monthly rate: i = 12 ÷ 12 ÷ 100 = 0.01
- Number of months: n = 10 × 12 = 120
- Apply the formula: M = 5,000 × ((1.01120 − 1) ÷ 0.01) × 1.01
Result:
| Type | Details |
|---|---|
| Total invested | ₹6,00,000 |
| Estimated returns | ₹5,61,695 |
| Maturity value | ₹11,61,695 |
So a monthly SIP of ₹5,000 could grow to roughly ₹11.6 lakh in 10 years, of which about ₹5.6 lakh is estimated returns — the rest is your own invested capital.
FAQs about SIP calculator
What is a SIP calculator?
A SIP calculator is an online tool that estimates the future value of your mutual fund investments when you invest a fixed amount every month. You enter your monthly investment, an expected annual return and the investment duration, and it shows your total invested amount, estimated returns and maturity value.
How does a SIP calculator work?
It uses the future value of a series formula for regular investments. Each monthly instalment compounds for the remaining months, and the tool adds them all together. You only need three inputs — monthly amount, expected rate of return and tenure — and the calculator handles the compounding maths instantly.
Are the returns shown by a SIP calculator guaranteed?
No. Mutual fund returns are linked to market performance and are not fixed. The calculator uses the expected return rate you enter, so the maturity value is only an estimate to help you plan. Actual returns can be higher or lower than the figure shown.
What is a good monthly SIP amount to start with?
There is no single amount that suits everyone — many funds allow SIPs from as little as ₹500 per month. A common approach is to invest a share of your monthly income that you can sustain for the long term, and increase it as your income grows. Start with an amount you can comfortably continue for several years.
What rate of return should I use in the calculator?
For equity mutual funds, many investors model long-term returns of around 10–12% per year, while debt funds are usually lower. These are assumptions, not promises — use a conservative figure and check the fund’s own historical performance and category before deciding.
Can I increase my SIP amount later?
Yes. Many investors raise their SIP each year as their income rises; this is called a step-up or top-up SIP. Even small annual increases can meaningfully raise your maturity value because the extra amount also compounds over time. A step-up SIP calculator lets you model this.
Are SIP returns taxable?
Yes, gains from mutual fund SIPs are taxable, and the rate depends on the fund type and how long you stay invested. Equity and debt funds are taxed differently, and each SIP instalment has its own holding period. Check the latest income-tax rules or consult a tax adviser for your specific situation.
SIP or lumpsum — which gives better returns?
Neither is always better. A lumpsum can outperform when markets rise steadily after you invest, while a SIP spreads your entries and averages your cost through market ups and downs, which many investors prefer. Your choice depends on how much you can invest at once and your comfort with market timing.
Related calculators
- Lumpsum Calculator — Estimate returns on a one-time mutual fund investment.
- Step-up SIP Calculator — See how yearly increases in your SIP grow your corpus.
- SWP Calculator — Plan regular withdrawals from your invested corpus.
- Mutual Fund Calculator — Project the value of any mutual fund investment.
- CAGR Calculator — Find the annual growth rate between two values.
- Retirement Calculator — Work out the corpus you need for retirement.
| Disclaimer: The results shown are estimates based on the inputs and assumptions you provide. Mutual fund investments are subject to market risks; returns are not guaranteed and past performance does not indicate future results. This tool is for educational purposes only and is not investment advice. Please read all scheme-related documents carefully or consult a SEBI-registered investment adviser before investing. |