SIP Calculator
Calculate SIP returns
About SIP Calculator
SIP Calculator is a free online tool that calculates the expected maturity value and total returns from a Systematic Investment Plan (SIP) in mutual funds. Enter your monthly SIP amount, expected annual return rate, and investment period — the tool shows the total amount invested, expected returns, and final corpus.
A Systematic Investment Plan (SIP) is a disciplined method of investing a fixed amount in a mutual fund at regular intervals — typically monthly. SIP is one of the most popular investment vehicles in India because it makes equity investing accessible with small amounts (as low as ₹500/month), removes the need to time the market, and harnesses the power of rupee cost averaging and compounding.
Rupee cost averaging is the key advantage of SIP over lump-sum investing. When markets fall, your fixed monthly amount buys more units; when markets rise, it buys fewer. Over time, this averaging reduces the impact of market volatility and lowers the average cost per unit. It removes the psychological burden of deciding "is now a good time to invest?" — with SIP, every time is the right time.
The SIP calculator uses the compound interest formula adapted for periodic investments: M = P × {[(1 + i)^n − 1] / i} × (1 + i), where M is the maturity value, P is the monthly SIP amount, i is the monthly interest rate (annual rate ÷ 12), and n is the number of payments. Expected return rates commonly used for equity mutual funds range from 10–15% per annum based on historical Indian equity market returns, though past returns do not guarantee future performance.
The power of long-term SIP is remarkable. A ₹5,000/month SIP for 20 years at 12% annual return produces a corpus of approximately ₹49.96 lakh on a total investment of just ₹12 lakh — returns of nearly ₹38 lakh. Extending to 30 years at the same rate produces ₹1.76 crore on ₹18 lakh invested.
How to Use SIP Calculator
- 1Enter your monthly SIP investment amount
- 2Enter the expected annual return rate (10–15% for equity funds)
- 3Enter the investment duration in years
- 4View the total invested amount, expected returns, and maturity value
- 5Adjust the monthly amount or duration to reach your financial goal
Frequently Asked Questions
Historically, diversified Indian equity mutual funds have delivered 10–15% CAGR over long periods (10+ years). Large-cap funds tend toward the lower end (10–12%); mid and small-cap funds toward the higher end (12–15%), with higher volatility. Past returns do not guarantee future performance.
SIP is better for regular investors who do not have a large lump sum and want to avoid timing risk. Lump-sum investing can outperform SIP if done at market lows, but consistently timing the market is notoriously difficult. SIP is the more practical and psychologically sustainable strategy for most investors.
Yes. Most mutual funds allow you to pause, reduce, increase, or stop SIP at any time without penalty. There is no lock-in period for SIP in open-ended mutual funds (except ELSS funds, which have a 3-year lock-in).
Missing one SIP instalment does not cancel your SIP — your existing investments remain and continue to grow. Most AMCs send a reminder and allow you to resume. Consistent monthly investment, however, maximises the compounding effect.
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