About the SIP calculator
A systematic investment plan (SIP) invests a fixed amount in a mutual fund at a regular interval, usually every month. Each instalment buys units at that day’s net asset value (NAV), so you buy more units when prices are low and fewer when they are high.
The SIP calculator shows what those instalments could be worth after a number of years if they earned a steady annual return. It separates the money you put in from the growth, so you can see how much of the final value comes from compounding.
How the SIP calculator works
FV = P × [(1 + i)^n − 1] ÷ i × (1 + i)
- FV
- Estimated value at the end
- P
- Monthly instalment
- i
- Annual return ÷ 12 ÷ 100
- n
- Number of monthly instalments
Each instalment is treated as invested at the start of its month, which is how Indian fund platforms and most SIP calculators work, and the expected annual return is spread evenly over twelve months.
Real funds do not grow at a steady rate. Their NAV moves with the market every day, so treat the result as one scenario at the return you entered, not a forecast.
Worked example
- Monthly investment
- ₹2,000
- Annual rate
- 10%
- Time period
- 5 years
Example inputs
- Estimated value
- ₹1,56,164.76
- Total contributed
- ₹1,20,000
- Growth / interest
- ₹36,164.76
Calculated result
Why use a SIP calculator?
- See how the instalment, the period and the return each change the result.
- Compare a shorter SIP with a longer one to see how compounding builds over time.
- Work backwards to a sensible monthly amount for a goal, then check it with the savings goal calculator.
SIP calculator FAQs
What is the full form of SIP?
SIP stands for systematic investment plan: investing a fixed amount in a mutual fund at regular intervals, usually monthly, instead of all at once.
Are SIP returns guaranteed?
No. A SIP is a way of investing in a mutual fund, and the fund’s value rises and falls with the securities it holds. The calculator assumes a steady return only to show how compounding works.
Can I change the SIP amount or date later?
Most fund houses and platforms let you pause, stop or modify a SIP, and many offer a top-up option to raise the amount each year. Some changes are made by stopping the old SIP and starting a new one, so check your platform’s rules.
How are SIP returns taxed?
Each instalment is a separate purchase of units. When you redeem, gains are taxed as capital gains according to the fund’s type and how long each instalment was held. ELSS funds can also qualify for a deduction under the old tax regime. Rules change, so check the current Income-tax rules.
Is a SIP useful for salaried people?
A monthly SIP fits a monthly salary: the instalment can be debited soon after pay day, which builds a regular habit. Whether a particular fund suits you depends on your goals and risk, which the calculator does not judge.
Why does my fund statement show a different return?
Statements usually report XIRR, which uses the exact date and NAV of every instalment. The calculator uses one steady assumed return, so the two will differ.