Finance
Plan your systematic investment program with monthly contributions and projected returns.
Future Value
₹23,23,391
Based on ₹10,000 monthly investment at 12% annual return over 10 years.
A SIP calculator is a financial planning tool that projects the future value of regular, equal investments (usually monthly) in mutual funds. Unlike lump-sum investing, SIP spreads your investment across market cycles, reducing timing risk and allowing you to benefit from rupee-cost averaging. The calculator compounds your contributions monthly and applies a chosen annual return rate to show how much capital you'll accumulate.
Enter three inputs: monthly investment amount, time period in months, and expected annual return rate. The calculator applies monthly compounding using the future value formula for annuities: it divides the annual return rate by 12 to get the monthly rate, then compounds each month's investment separately as if invested on the first day of that month. The result shows your total principal invested, the wealth gained from returns, and the final value—all before tax and inflation adjustments.
FV = P × [((1 + r)^n - 1) / r] × (1 + r), where P = monthly payment, r = monthly interest rate (annual ÷ 12), n = number of monthsFV is your final amount. P is your fixed monthly investment. The ratio (1 + r)^n − 1) / r accounts for compounding each payment over its remaining months. The final × (1 + r) adjusts because most SIPs invest at the start of each month, not the end.
| Input | Result | Notes |
|---|---|---|
| ₹10,000/month for 10 years (120 months) at 12% annual return | Principal: ₹12,00,000 | Returns: ₹3,87,000 | Total: ₹15,87,000 | Realistic middle-ground return for diversified equity mutual funds over a decade |
| ₹5,000/month for 20 years (240 months) at 10% annual return | Principal: ₹12,00,000 | Returns: ₹13,63,000 | Total: ₹25,63,000 | Shows power of long-term compounding; returns exceed principal invested |
| ₹20,000/month for 5 years (60 months) at 8% annual return | Principal: ₹12,00,000 | Returns: ₹2,16,000 | Total: ₹14,16,000 | Shorter horizon; lower return reflects higher debt/balanced fund exposure |
SIP spreads your investment over months or years in equal amounts, buying more units when prices fall and fewer when prices rise—this is rupee-cost averaging. Lump-sum invests all money at once. SIP is less risky for beginners and works well in volatile markets; lump-sum can outperform in bull markets but carries timing risk.
Yes. Most mutual fund schemes allow you to increase, decrease, or pause your SIP with a simple request to your fund house. Calculate each stage separately (e.g., ₹5k for 3 years, then ₹10k for 2 years) and add the final values together.
Use 10–12% for large-cap/diversified equity funds, 8–10% for balanced funds, and 6% for debt funds. Check your chosen fund's 5-year or 10-year CAGR as a guide, but remember past returns do not guarantee future performance.
No. This tool shows gross returns. You'll owe 20% long-term capital gains tax (LTCG) on profits if you hold equity funds >1 year. Debt funds are taxed at your income tax slab. Deduct the tax manually from the 'returns' figure to find your actual take-home.
The calculator assumes a steady return rate, but real markets fluctuate. During downturns, your SIP buys more units at lower prices, which accelerates gains in recovery. This is why long-term SIPs (7+ years) typically weather crashes and come out ahead.
Yes, with adjustments. For bank recurring deposits (RDs), use the fixed interest rate your bank offers (typically 5–7%). For fixed deposits, set 'months' to your FD tenure and 'return rate' to the FD rate; ignore the monthly payment field and multiply the result by how many FDs you buy.