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SIP Calculator

Project returns on a monthly investment plan.

SIP calculator for systematic investment plans. Enter monthly amount, expected return and duration to see maturity value, total invested and wealth gained.

Written and maintained by Mohit PatelLast checked August 4, 2026How we build these
%

Long-run equity fund averages have run roughly 10–14%. Returns are not guaranteed.

15 years
%

Raise your instalment by this much each year, e.g. to match salary growth. Leave at 0 for a flat SIP.

Maturity value

₹5,045,760

after 15 years

Total invested₹1,800,000
Wealth gained₹3,245,760
Return on investment180.3%

Invested vs. returns

Your instalments stack up steadily; the returns compound on top of them and accelerate.

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  • Amount invested
  • Returns earned
View as table
Portfolio value by year, split into amount invested and returns earned
YearInvestedReturnsValue
1₹120,000₹8,093₹128,093
2₹240,000₹32,432₹272,432
3₹360,000₹75,076₹435,076
4₹480,000₹138,348₹618,348
5₹600,000₹224,864₹824,864
6₹720,000₹337,570₹1,057,570
7₹840,000₹479,790₹1,319,790
8₹960,000₹655,266₹1,615,266
9₹1,080,000₹868,215₹1,948,215
10₹1,200,000₹1,123,391₹2,323,391
11₹1,320,000₹1,426,148₹2,746,148
12₹1,440,000₹1,782,522₹3,222,522
13₹1,560,000₹2,199,311₹3,759,311
14₹1,680,000₹2,684,180₹4,364,180
15₹1,800,000₹3,245,760₹5,045,760

How the SIP Calculator works

A systematic investment plan puts a fixed amount into a fund every month regardless of price. Because each instalment compounds for a different length of time, the maturity value is not simply your total invested times a return; this calculator handles the month-by-month compounding correctly.

Also known as: systematic investment plan · monthly investment returns · mutual fund SIP returns

How a systematic investment plan compounds

A SIP invests a fixed amount at regular intervals, and each instalment compounds for its own remaining period. The first contribution has the full term to grow; the last has none.

The future value formula for a series of regular payments is P times one plus i to the power n minus one, divided by i, multiplied by one plus i, where P is the instalment, i the periodic rate and n the number of instalments.

The final term accounts for contributions made at the start of each period rather than the end. Whether a calculator uses it changes the result by roughly one period's growth, which is small over a year and noticeable over twenty.

Rupee cost averaging

Investing a fixed amount regularly buys more units when prices are low and fewer when they are high, which produces an average purchase price below the average of the prices paid.

The effect is real and it is frequently overstated. It reduces the risk of investing everything at a peak; it does not improve expected returns, and over a rising market a lump sum invested earlier usually beats the same total spread over time.

Its genuine benefit is behavioural. Regular automatic investment removes the decision about when to invest, which is the decision most people get wrong, and it keeps contributions going during the falls when stopping feels most sensible.

The return assumption

A SIP projection is entirely determined by the assumed rate of return, and that assumption is doing more work than any other input.

Indian equity markets have delivered long-run returns in the region of 12% nominal historically, which is the figure most SIP calculators default to. Whether the next twenty years resemble the last is unknowable.

Running the projection at several rates is more honest than one. At 8%, 10% and 12%, a £500 monthly contribution over twenty years gives roughly £294,000, £383,000 and £500,000. That spread is the actual uncertainty, and a single figure conceals it.

Step-up contributions

Increasing the instalment annually, in line with income growth, changes the outcome substantially and is rarely modelled.

A 10% annual increase on a £500 monthly contribution over twenty years contributes far more in total and produces a materially larger final figure than a flat contribution, because the increases still have years to compound.

It is also more realistic. Nobody's income stays flat for twenty years, and a plan that assumes a constant contribution is either under-using later earning capacity or overstating what is affordable now.

What sits between the projection and the outcome

Expense ratios reduce returns every year and compound against the investor. The difference between a 0.2% index fund and a 1.5% actively managed one is over 1% a year, which over twenty years is a large share of the final amount.

Exit loads, applied to redemptions within a defined period, and taxes on gains both reduce what is actually received. Tax treatment varies enormously by jurisdiction and by holding period.

And the behaviour of the investor. The gap between fund returns and investor returns, caused by buying after rises and selling after falls, is well documented and frequently exceeds the fee difference. A plan that is followed at 8% beats one that is abandoned at 12%.

Where to go next

The SIP question rarely arrives on its own. These are the ones that usually come with it:

Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.

Frequently asked questions

How is SIP maturity value calculated?

M = A × ({[1 + i]^n − 1} ÷ i) × (1 + i), where A is the monthly instalment, i is the monthly rate (annual ÷ 12 ÷ 100), and n is the number of instalments. The trailing (1 + i) accounts for investing at the start of each period.

What return rate should I assume?

Historical long-run equity fund returns have run roughly 10-14% annually in India and 8-10% in developed markets, before fees. Debt funds are lower. Any single year can be sharply negative, so treat the projection as an average, not a promise.

Is SIP better than investing a lump sum?

SIP spreads out your entry price, which reduces the risk of investing everything right before a downturn. Mathematically a lump sum invested early usually wins in a rising market, but SIP is easier to sustain and removes the need to time anything.

What is a step-up SIP?

A step-up (or top-up) SIP raises your monthly contribution by a set percentage each year, typically matching salary growth. Even a 10% annual step-up can lift the final corpus by 40-60% over 20 years compared with a flat instalment.

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