SIP Calculator
Calculate potential future wealth, total investment, and compounding returns from regular monthly SIP investments.
Project future investment value, total capital contributed, and compounded wealth gains.
Estimated Future Value (after 10 years)
Year-by-Year SIP Growth Projection
Cumulative annual breakdown of capital invested, wealth gain from compounding, and estimated corpus.
| Year | Monthly Investment | Amount Invested | Estimated Returns | Total Value |
|---|---|---|---|---|
| Year 1 | ₹10,000.00 | ₹1,20,000.00 | +₹8,093.28 | ₹1,28,093.28 |
| Year 2 | ₹10,000.00 | ₹2,40,000.00 | +₹32,432.00 | ₹2,72,432.00 |
| Year 3 | ₹10,000.00 | ₹3,60,000.00 | +₹75,076.47 | ₹4,35,076.47 |
| Year 4 | ₹10,000.00 | ₹4,80,000.00 | +₹1,38,348.34 | ₹6,18,348.34 |
| Year 5 | ₹10,000.00 | ₹6,00,000.00 | +₹2,24,863.67 | ₹8,24,863.67 |
| Year 6 | ₹10,000.00 | ₹7,20,000.00 | +₹3,37,570.31 | ₹10,57,570.31 |
| Year 7 | ₹10,000.00 | ₹8,40,000.00 | +₹4,79,789.97 | ₹13,19,789.97 |
| Year 8 | ₹10,000.00 | ₹9,60,000.00 | +₹6,55,265.65 | ₹16,15,265.65 |
| Year 9 | ₹10,000.00 | ₹10,80,000.00 | +₹8,68,215.05 | ₹19,48,215.05 |
| Year 10 | ₹10,000.00 | ₹12,00,000.00 | +₹11,23,390.76 | ₹23,23,390.76 |
How SIP Returns Are Calculated
Mathematical compounding formulas and wealth projection methods for monthly SIP investments.
How SIP Returns Are Calculated
P is your monthly installment, r is the periodic monthly return rate (Annual Return Rate ÷ 12 ÷ 100), and n is the total number of monthly contributions (Years × 12). Monthly SIP contributions are assumed to be made at the beginning of each month, with the multiplying factor (1 + r) accounting for each installment compounding from its deposit date. For zero expected return, FV = P × n.
When to use: Use to plan long-term financial goals, retirement funds, education corpus, and wealth accumulation via periodic disciplined investing.
Practical Calculation Examples
Real-world scenarios illustrating step-by-step numbers, inputs, and verified outputs.
Example 1: ₹10,000/Month at 12% Return for 10 Years
Standard long-term equity SIP compounding over a decade with beginning-of-month deposits.
Example 2: ₹5,000/Month at 10% Return for 5 Years
Medium-term conservative growth portfolio with periodic beginning-of-month savings.
Example 3: ₹5,00,000 Milestone at 0% Return for 5 Years
Capital preservation baseline without compounding interest.
Example 4: Long-Term Mutual Fund SIP (₹5,000/Month @ 12% for 15 Years)
Illustrative wealth accumulation scenario over a 15-year horizon with beginning-of-month contributions at an assumed 12% annual return. Not an investment guarantee or financial advice.
Frequently Asked Questions
Common questions regarding formulas, methodologies, and calculation conventions.
What is a SIP calculator?
A SIP calculator is a financial tool that estimates the future maturity value, total amount invested, and compounded wealth gain for systematic monthly mutual fund investments based on an assumed annual rate of return.
How does a SIP calculator work?
A SIP calculator works by applying the monthly annuity compound interest formula. It calculates the compound growth of each monthly installment over its respective investment duration, accumulating both total principal contributions and compounded wealth gains.
How is SIP return calculated?
SIP returns are calculated using the compound interest annuity due formula: FV = P × [((1 + r)^n − 1) ÷ r] × (1 + r), where P is the fixed monthly deposit, r is the monthly rate of return (Annual Rate ÷ 1200), and n is the total number of monthly payments (Years × 12).
What formula does a SIP calculator use?
The calculator uses the standard future value formula for an annuity due: FV = P × [((1 + r)^n − 1) ÷ r] × (1 + r), assuming contributions occur at the start of each monthly compounding period.
How do I use a SIP calculator?
Enter your monthly investment amount (e.g. ₹5,000), your expected annual rate of return (e.g. 12%), and your investment duration in years. The calculator immediately displays your total invested capital, estimated returns, total maturity value, and annual milestone breakdown.
Does SIP guarantee returns?
No. Mutual fund and equity SIP investments are subject to market risks. The return rate entered in the calculator is an assumed average rate for projection purposes, and actual market outcomes can fluctuate.
What happens if the expected return is 0%?
At 0% annual return, no compounding or interest is earned. Your future value equals exactly the total amount invested across all monthly payments (P × n), with zero wealth gain.
Is SIP the same as a recurring deposit?
No. A Recurring Deposit (RD) offers a fixed, guaranteed interest rate backed by a bank. A mutual fund SIP invests in market instruments (equities or debt) where returns are market-linked rather than fixed.
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