Calculator
SIP Calculator
A Systematic Investment Plan (SIP) is a fixed monthly investment into a mutual fund. Because each instalment buys units at different prices and returns compound over time, even modest monthly amounts can grow substantially over long horizons. This calculator estimates the maturity value of your SIP, how much you actually invested, and the wealth gained — so you can set a realistic monthly amount for goals like a home, education, or retirement.
Amount invested every month.
Long-term equity funds have historically returned ~10–13%. Not guaranteed.
How long you keep investing.
Invested vs wealth gained over time
- Invested
- Gains
Assumes a constant annual return compounded monthly and investment at the start of each month. Real market returns are volatile and not guaranteed; this is an illustration, not a promise.
What your result means
- Most of the maturity value appears in the final years — that back-loaded curve is compounding, so the single biggest lever is simply staying invested longer.
- The figure assumes a steady return, but real markets zig-zag; judge a SIP over 7+ years, never on one bad year.
- A step-up SIP (raising the amount ~10% a year as your income grows) reaches the same goal with a much smaller starting amount.
How to use this calculator
- Enter the amount you can invest every month without straining your budget.
- Set a realistic expected return — 10–12% for diversified equity funds over the long term, lower for hybrid or debt funds.
- Choose how many years you will keep investing.
- Read the maturity value, then compare it against “total invested” to see how much is compounding.
- If the corpus falls short of your goal, increase the monthly amount or extend the period.
The formula
Maturity = M × [((1 + i)ⁿ − 1) ÷ i] × (1 + i), where M = monthly investment, i = monthly return (annual ÷ 12 ÷ 100), and n = number of months (years × 12). Wealth gained = Maturity − (M × n).
Worked example
Investing ₹10,000 a month for 15 years at an assumed 12% per year: i = 0.01/month, n = 180. The maturity value is about ₹50,45,000, against a total investment of ₹18,00,000 — so roughly ₹32,45,000 is wealth gained through compounding. Extending the same SIP to 25 years grows the corpus to about ₹1.9 crore, showing how time matters far more than the monthly amount.
When to use it
- Sizing a monthly SIP to reach a goal like a home down payment or retirement corpus.
- Seeing the long-term cost of delaying — compare starting now versus five years later.
- Comparing how the period (years) affects the corpus more than the monthly amount.
- Setting expectations before signing up for a SIP so you are not surprised by volatility.