SIP Calculator
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What This Tool Does
Enter a monthly amount, a time period, and an expected rate of return, and this tool estimates what your investment could grow to. It's built for SIPs — a way of investing a fixed sum in mutual funds at regular intervals instead of all at once.
You can also use Age Calculator
How It's Calculated
The maturity value comes from a standard compound-growth formula:
M = P × (((1 + i)^n − 1) / i) × (1 + i)
- M — maturity amount
- P — amount invested each period
- i — periodic (usually monthly) rate of return
- n — number of investments made
The tricky part is i. You can't just divide the annual rate by 12 — that ignores compounding. Instead, convert it properly:
i = (1 + annual rate)^(1/12) − 1
Example: Investing ₹2,000/month for 2 years at an expected 10% annual return.
- Monthly rate: (1.10)^(1/12) − 1 ≈ 0.797%
- n = 24
- M = 2,000 × (((1.00797)^24 − 1) / 0.00797) × 1.00797 ≈ ₹53,000
Total invested: ₹48,000. Estimated gain: ~₹5,000.
Things to Keep in Mind
- Returns aren't fixed. Mutual fund returns fluctuate with the market. The rate you enter is an assumption, not a guarantee.
- No fees included. The result doesn't account for expense ratios or exit loads, which can lower actual returns.
- Step-ups aren't factored in. If you plan to increase your SIP amount over time, the basic version of this tool won't reflect that — the output assumes a flat monthly amount throughout.
SIP vs. Lump Sum
A SIP spreads your investment across regular intervals; a lump sum puts it all in at once. SIPs average out your purchase cost over time, which softens the impact of market swings — useful if you're investing from regular income rather than a large one-time amount. Neither is inherently better; it depends on how the money is coming in and your risk comfort.
Who Uses This
- Salaried investors planning monthly contributions from their income
- Anyone comparing SIP vs. lump sum before committing funds
- People setting a savings goal (like a down payment) and working backward to a monthly figure
- Investors testing how tenure or rate assumptions change the outcome
FAQs
Is the result guaranteed? No. It's an estimate based on the rate you enter. Actual mutual fund returns vary.
Can I change my SIP amount later? Most mutual funds allow you to modify, pause, or stop a SIP, though the exact process depends on the fund house.
Does this calculator include fees? No. Expense ratios and exit loads aren't factored into the maturity amount shown.
Is a longer tenure always better? Generally, longer tenures give compounding more time to work, but returns still depend on market performance over that period.
Can I use this for any investment amount? Yes — the formula scales to any monthly amount, tenure, or rate you enter.
Try It Above
Enter your monthly amount, tenure, and expected return to see an estimate. This is for planning purposes only and isn't investment advice.