How the SIP Calculator Works
This SIP calculator projects the future value of your monthly investments by compounding each installment at your expected annual rate of return, month over month, for the entire investment period.
Enter your monthly investment amount, the return rate you expect (equity mutual funds have historically delivered 10–14% annually over the long term, though this is not guaranteed), and how many years you plan to stay invested.
You can also add an optional annual step-up percentage — a common strategy where you increase your SIP amount every year, typically in line with your income growth, to build a larger corpus faster.
Formula Used
The calculator uses the standard future value of an annuity formula for a series of monthly investments, compounded monthly:
FV = P × [ ((1+i)^n − 1) / i ] × (1+i)- FVFuture value of your investment
- PMonthly investment amount
- iExpected monthly rate of return (annual rate ÷ 12)
- nTotal number of monthly installments
Example Calculation
Suppose you invest a fixed amount every month in an equity mutual fund for 10 years, expecting a 12% annual return.
- Monthly Investment₹10,000
- Expected Return Rate12% p.a.
- Investment Period10 years
- ResultTotal Value ≈ ₹23.23 Lakh (Invested: ₹12 Lakh, Returns: ₹11.23 Lakh)
Important Assumptions
- Returns are assumed to be compounded monthly at a constant rate through the entire tenure — actual mutual fund returns fluctuate and are never fixed.
- The SIP installment is assumed to be invested at the start of the month (annuity due).
- This calculator does not account for expense ratios, exit loads, or taxation on capital gains.
- Step-up SIP increases apply once every 12 months from the start date.