📈 SIP Calculator
See how a monthly SIP could build up with the power of compounding.
How it works
A SIP invests the same amount every month, so the final value is just a stack of monthly deposits, each grown for a different length of time. This calculator assumes your instalment goes in at the start of each month, which is the way most SIPs are set up, and it shows in the formula:
FV = P x [((1 + i)n - 1) / i] x (1 + i), where P is the monthly amount, i is the yearly return divided by 12, and n is the number of months. That last (1 + i) is the start-of-month bonus — every instalment gets one extra month of growth compared with investing at month-end.
Because the amount is fixed, you automatically buy more fund units when markets are down and fewer when they are up — rupee-cost averaging. It smooths your entry price; it does not remove risk. The return here is a steady assumed rate, while a real equity fund swings hard from year to year, so read the result as a planning estimate, not a promised figure. Gains are simply the maturity value minus the total you paid in.
An example
Invest ₹10,000 a month for 15 years at an expected 12% a year. Out of your own pocket you pay in ₹18,00,000 — ₹18 lakh, spread over 180 instalments. The maturity value comes to ₹50,45,760, so the estimated gains are ₹32,45,760.
Look at that split for a second: nearly two-thirds of the final amount is gains, not money you deposited. The gains alone are about 1.8 times everything you paid in. That is the whole point of starting a SIP early — in the first few years the gains are a thin slice, but compounding keeps widening them, and the last years of a long SIP do most of the heavy lifting.
Common questions
Is a 12% return guaranteed in a SIP?
No. Equity mutual funds rise and fall with the market, and 12% is simply a long-term planning assumption people commonly use for equity SIPs in India. Some 15-year periods have delivered more, some less. Use the calculator at 10% as well and treat that as your cautious case.
Why does investing at the start of the month change the result?
Every instalment gets one extra month of compounding compared with an end-of-month investment — that is the (1 + i) factor at the end of the formula. Over 15 years the difference is modest but real. If your fund house debits your SIP mid-month, your actual result will sit somewhere between the two versions.
Are taxes and fund charges included?
No. A fund's expense ratio is already reflected in the returns it reports, but the return you personally get depends on the fund you choose. And when you sell, capital-gains tax applies on the profit — equity gains above the yearly exemption are taxed, so your in-hand amount will be a little lower than the maturity value shown.
Related calculators
This calculator gives estimates for learning. Rates, taxes and rules change, and your lender or the IRS has the final numbers — check big decisions against the real documents.