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SIP Calculator
Project the future value of a monthly Systematic Investment Plan.
Invested
₹12,00,000
Gains
₹37,95,740
Future Value
₹49,95,740
How it works
A SIP invests a fixed amount every month into a mutual fund. Because you buy more units when prices are low and fewer when high (rupee-cost averaging), your average cost smooths out over time. The calculator compounds each monthly instalment for the remaining months until the end date.
The formula
FV = P × [((1 + r)^n − 1) / r] × (1 + r)- FV
- Future value at maturity
- P
- Monthly investment amount
- r
- Monthly rate = annual rate ÷ 12 ÷ 100
- n
- Total number of months (years × 12)
Worked example
₹5,000/month for 20 years at an assumed 12% annual return → invested ₹12,00,000, projected value ~₹50 lakh. Roughly 76% of the corpus comes from compounding, not your deposits.
Pro tips
- Start early — a 25-year-old investing ₹5k will comfortably beat a 35-year-old investing ₹10k, for the same target age.
- Step-up your SIP by 10% each year as income grows; it can double the final corpus.
- 12% is a common equity assumption; use 8–10% for balanced funds and 6% for debt funds.
- Never stop SIPs during market crashes — those are the months buying the most units.
Common mistakes
- Treating past 3-year fund returns as guaranteed future returns.
- Ignoring expense ratio and exit load; a 1% higher fee eats ~20% of long-term returns.
- Redeeming a large SIP portfolio without checking capital-gains tax (LTCG ₹1.25L free per FY, 12.5% above that).
Go deeper
Concepts to explore
Rupee cost averagingExpense ratioXIRR vs CAGR
Results are illustrative and do not include taxes, fees, or slippage. This is educational content — not investment, tax, or legal advice.