SIP Calculator
Estimate the future value of your mutual fund investments based on expected returns.
Systematic Investment Plan (SIP) Returns
A SIP is a fixed monthly investment into a mutual fund, not a separate product. You pick an amount and date; the fund house buys units at that day's NAV. Over years, rupee cost averaging smooths out market swings because you buy more units when prices fall and fewer when they rise.
How to use this calculator
Enter the monthly amount you can invest without skipping months. SIPs work best when the mandate runs through both bull and bear phases. Stopping during a downturn often locks in losses you could have averaged down.
Set expected return as a range, not a promise. Many planners use 10% to 12% CAGR for diversified equity funds over 10+ years, but run 8% as a stress case if you need the money within five years.
Watch tenure closely. Extra years usually matter more than a slightly higher monthly amount because compounding needs time. A ₹5,000 SIP for 20 years often beats ₹8,000 for 12 years at the same return assumption.
Direct plans charge lower expense ratios than regular plans because no distributor commission is embedded. Over 15 years that gap can mean a noticeable difference in corpus on the same SIP amount.
SIP maturity formula (with monthly compounding)
M = P × ({[1 + i]^n − 1} / i) × (1 + i) Where: P = monthly SIP amount n = number of monthly instalments i = monthly rate of return Do not divide the annual return by 12 directly. Convert first: Monthly rate i = (1 + annual return)^(1/12) − 1 Example: ₹3,000 per month for 10 years at 12% annual return. Monthly i ≈ 0.948% (not 1%). Estimated maturity ≈ ₹6.9 lakh on ₹3.6 lakh invested. Actual fund returns vary. Exit load and expense ratio are not included in this estimate.
Frequently Asked Questions
Is SIP the same as a mutual fund?
No. A mutual fund is the investment scheme. SIP is just the method of investing a fixed sum on a regular schedule, usually monthly. You can also invest via lumpsum in the same fund.
Why not simply divide annual return by 12?
Returns compound monthly in SIP math. Dividing 12% by 12 gives 1% per month, which overstates the corpus because 1% compounded for 12 months exceeds 12% annually. Use the (1+r)^(1/12)−1 conversion instead.
What return should I assume for equity SIP?
For 7+ year goals in large-cap or flexi-cap funds, 10% to 12% CAGR is a common planning range. Shorter goals should use a lower assumption or debt funds instead.
Should I stop SIP when markets fall?
Market dips are when SIPs buy more units per rupee. Pausing after a crash removes the main benefit of disciplined investing. Keep an emergency fund so you do not need to stop the mandate.
What if my SIP instalment bounces?
The mutual fund account stays open, but your bank may charge a mandate failure fee. Three consecutive failures can cancel the SIP at some banks.
Direct vs regular plan for SIP?
Direct plans have lower expense ratios. Over long tenures the saved fees stay invested and compound. You can start or switch SIPs in direct plans through the AMC website or platforms like MF Central.
Which SIP date is best?
Long-term studies show little difference between dates. Pick a day soon after salary credit so the debit succeeds before discretionary spending.
Does SIP guarantee profit?
No. SIPs reduce timing risk through averaging but do not remove market risk. Debt fund SIPs have lower volatility but still carry credit and rate risk.
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