How to use the SIP Calculator
- Enter how much you will invest every month.
- Enter the expected annual return. Equity funds have historically returned 10–14% over long periods, but returns are never guaranteed.
- Choose the investment period in years.
- Optionally add an annual step-up – the percentage by which you will increase your SIP each year.
Formula
FV = P × [(1 + i)ⁿ − 1] ÷ i × (1 + i)
- FV = future value of the investment
- P = monthly SIP amount
- i = monthly rate of return = annual return ÷ 12 ÷ 100
- n = number of monthly instalments
- With a step-up, the calculator grows the instalment every 12 months and compounds month by month.
Worked example: ₹10,000 a month for 10 years at 12%
Here P = ₹10,000, i = 12 ÷ 12 ÷ 100 = 0.01 and n = 120.
You invest ₹12,00,000 in total, and the estimated value grows to about ₹23,23,391 – a gain of roughly ₹11.2 lakh.
Add a 10% yearly step-up and the same plan reaches about ₹33.7 lakh, because each year’s larger instalments also compound.
Why starting early matters
Compounding rewards time more than amount. Someone who invests ₹5,000 a month for 25 years at 12% ends up with roughly ₹95 lakh, while investing ₹10,000 a month for only 15 years gives about ₹50 lakh – even though the second person invested more (₹18 lakh against ₹15 lakh). Starting a few years earlier can make a bigger difference than investing more later.
Things to keep in mind
This SIP calculator gives an estimate, not a promise:
- Mutual fund returns vary every year and can be negative in the short term.
- Expense ratios, exit loads and taxes reduce your actual returns.
- Use a conservative return (for example 10–12% for equity) when planning important goals.