What is a SIP?
A Systematic Investment Plan, or SIP, is a way of investing a fixed amount at regular intervals, usually monthly. It is a method of investing, not a product or scheme by itself.
Investments calculator
SIP Calculator India
Estimate the future value of a monthly SIP, the total invested, and the estimated gains, or work backwards from a target amount to the monthly SIP needed, with an optional annual step-up and a year-by-year projection.
Interactive calculator
Estimate your SIP growth or required monthly amount
Choose whether you know your monthly SIP or your target amount. Returns are an assumption only and are not guaranteed.
Year-by-year projection
Estimated invested amount, value, and gain at the end of each year, based on the assumed return.
| Year | Invested amount | Estimated value | Estimated gain |
|---|---|---|---|
| 1 | ₹60,000 | ₹63,832 | ₹3,832 |
| 2 | ₹1,20,000 | ₹1,35,325 | ₹15,325 |
| 3 | ₹1,80,000 | ₹2,15,396 | ₹35,396 |
| 4 | ₹2,40,000 | ₹3,05,076 | ₹65,076 |
| 5 | ₹3,00,000 | ₹4,05,518 | ₹1,05,518 |
| 6 | ₹3,60,000 | ₹5,18,013 | ₹1,58,013 |
| 7 | ₹4,20,000 | ₹6,44,007 | ₹2,24,007 |
| 8 | ₹4,80,000 | ₹7,85,120 | ₹3,05,120 |
| 9 | ₹5,40,000 | ₹9,43,167 | ₹4,03,167 |
| 10 | ₹6,00,000 | ₹11,20,179 | ₹5,20,179 |
What to do next
Continue your decision
Formula, example, assumptions, and FAQs — open any section for the detail.
Formula
Effective monthly return
r = (1 + annual return ÷ 100)^(1 ÷ 12) − 1The monthly rate is the compounded equivalent of the annual return, not the annual return divided by 12. For 12% per year, r is about 0.949% per month.
Future value of a monthly SIP
FV = P × (((1 + r)^n − 1) ÷ r) × (1 + r)P is the monthly SIP, r is the monthly rate, and n is the number of months. Contributions are treated as made at the start of each month. When r is 0, the future value equals the total invested.
Required SIP for a target
P = target ÷ ((((1 + r)^n − 1) ÷ r) × (1 + r))The future-value formula is rearranged to solve for the monthly SIP needed to reach a target amount over the same duration and assumed return.
Step-up SIP
Year y SIP = starting SIP × (1 + step-up ÷ 100)^(y − 1)When a step-up is used, the monthly SIP is raised once per completed year and the value is built month by month, so the increase is transparent rather than a single formula.
Worked example
Example for a ₹5,000 monthly SIP over 10 years
An investor puts ₹5,000 into a SIP every month for 10 years and assumes a 12% annual return, with no step-up.
Calculation:The effective monthly rate is about 0.949%. Over 120 months the total invested is ₹6,00,000, and the future value is about ₹11,20,000.
Result:The estimated future value is roughly ₹11,20,000, an estimated gain of about ₹5,20,000 on ₹6,00,000 invested. This is an estimate only; actual returns vary with the market.
Assumptions
- The expected return is a constant annual assumption, compounded to an effective monthly rate.
- Each SIP contribution is treated as made at the start of the month.
- Real market-linked returns are not constant and can be higher, lower, or negative in any period.
- A step-up, when entered, increases the monthly SIP once at the start of each new year.
- Inflation, taxes, exit load, expense ratio, and transaction costs are not included.
- The calculator does not use live fund data and does not suggest any specific investment.
Common mistakes
- Treating the expected return as guaranteed instead of an assumption.
- Dividing the annual return by 12 instead of using the compounded effective monthly rate.
- Ignoring inflation, so the future value looks larger in today’s spending terms than it is.
- Stopping a SIP early, which removes much of the later compounding.
- Assuming past returns will repeat in the future.
- Entering an unrealistically high annual return such as 30% or more for a long period.
- Confusing a SIP, which is only a way of investing regularly, with a mutual fund scheme itself.
Accuracy notes
The future value uses an annuity-due model built month by month, so the estimate is consistent with the displayed total invested and projection. Amounts are rounded to whole rupees for display. Results depend entirely on the assumed return and inputs, and do not account for inflation, taxes, fees, or real market variation.
Frequently asked questions
Is the expected return guaranteed?
No. The return you enter is only an assumption used for the estimate. Market-linked investments can deliver more, less, or negative returns in any period, so the future value is not assured.
Why is the monthly rate not the annual return divided by 12?
Returns compound. The calculator uses the effective monthly rate, (1 + annual ÷ 100)^(1 ÷ 12) − 1, which is slightly lower than annual ÷ 12 and reflects monthly compounding more accurately.
What does a step-up SIP do?
A step-up raises your monthly SIP by a fixed percentage each year, usually to match income growth. The calculator increases the contribution once per year and builds the value month by month.
How does the target mode work?
Enter the amount you want to reach and the duration, and the calculator estimates the monthly SIP needed at the assumed return. A longer duration lowers the required monthly amount for the same goal.
Does this calculator recommend any mutual fund?
No. It only performs a mathematical estimate from the values you enter. It does not use live fund data, does not rank or suggest funds, and is not investment advice.
This calculator provides a general estimate for planning and education only. It is not investment advice or a recommendation of any fund or scheme. Returns are market-linked, not guaranteed or assured, and actual outcomes can differ. Consider your own goals and consult a qualified, registered adviser before investing.Read the full disclaimer.