Investment Calculator

SIP Calculator

Estimate how monthly investing can grow over time with compounding returns.

Published by Calculator All-in-OneMethod: recurring investment projectionMethods and limitations

What this calculator does

The SIP Calculator estimates the future value of a monthly investment made through a Systematic Investment Plan. SIPs are commonly used for mutual fund investing because they let investors contribute a fixed amount every month.

The tool reports three figures: the amount you will actually deposit (monthly amount × months), the estimated growth on top of it, and the projected maturity value. Separating deposits from growth shows how much of the final corpus is your own money versus compounding.

When to use it

Use it for long-term goals such as education, a home down payment, retirement, travel, or wealth building. It helps test whether a monthly investment is enough for a target and how duration affects returns.

Use it to size a goal: work backwards from a target amount and test what monthly contribution reaches it in your timeframe. Mutual fund returns are market-linked and not guaranteed, so the fixed annual return you enter is a modelling assumption, not a promise. This page is educational and is not investment advice.

Formula used

Future value = M × (((1 + r)^n − 1) / r) × (1 + r). Here M is the monthly contribution, r is the entered nominal annual percentage divided by 1,200, and n is the whole number of months. At a zero return, value equals M × n.

Contributions occur at the beginning of each month. End-of-month contributions would omit the final (1 + r) factor and produce a lower value at positive rates. A nominal annual rate divided by 12 is not the same as an effective annual return; all SIP tools here use the nominal convention.

Understanding each input

Monthly investment is the fixed amount contributed each month, with no missed payments.
Expected annual return is your nominal modelling assumption, not an observed or promised fund return. Try several assumptions, including zero. This tool accepts non-negative rates only and cannot model losses or volatility.
Time period in years converts to whole monthly contributions, up to 1,200 months.

Investor.gov: investment returns, risk and compound growth.

Example calculation

If you invest 5,000 monthly for 10 years at 12 percent annual return, projected value is about 1,161,695, invested amount is 600,000, and estimated return is about 561,695.

Notice the split in the example: of the ~1,161,695 maturity value, 600,000 is your own deposits and ~561,695 is growth — nearly half the corpus. Run the same inputs at 5 years and the growth share drops sharply; that asymmetry is the whole argument for starting early.

Benefits

Estimate maturity value
Compare return assumptions
Separate invested amount and gains
Plan goals monthly
Understand compounding

Its most honest use is expectation-setting: modelling the same monthly amount at 8, 10, and 12 percent shows the realistic range of outcomes, which protects you from planning a goal around the single best-case number a fund advertisement highlights.

Reading the result

Invested amount is your own contributions; estimated returns are the difference between projected value and contributions. The result is one mathematical scenario, not the centre of a predicted range. Actual outcomes may be substantially lower, and investments can lose value. The currency selector changes labels only, not exchange rates.

Assumptions and limitations

The projection assumes a constant return every month, no missed instalments, no exit load, no expense-ratio drag beyond the return you entered, and no taxes. Actual mutual fund NAVs fluctuate, so real outcomes will differ from any smooth curve — sometimes materially. Capital-gains tax on redemption reduces the spendable amount.

Informational estimate only — not investment advice. Mutual fund investments are subject to market risks; read all scheme documents carefully.

Common mistakes

Entering a fund's best recent year (for example 30 percent) as the expected return for a 15-year plan.
Ignoring inflation — a 1.1 million corpus 10 years from now buys less than it does today.
Comparing the projected value against a fixed deposit without adjusting for risk and tax treatment.
Stopping the SIP during market dips, which breaks the assumption the whole model rests on.

FAQs

Does SIP guarantee returns?

No. SIP returns depend on market performance and are not guaranteed.

What return rate should I enter?

Use a realistic annual expected return based on asset type and risk.

Can I use this for RD?

It is designed for SIP-style compounding. RD rules may differ.

Why does duration matter?

Longer duration gives compounding more time to work.

Is this investment advice?

No. It is an educational estimate. Consult a financial advisor before investing.

Understand the return assumption

The SIP projection assumes regular contributions and a constant return rate. Real investment returns vary with markets, fees, taxes, fund choices, and contribution timing, so the page presents planning scenarios, not financial advice or a guarantee.

Separate contributions from assumed growth

Start with a case that contains no market gain

Enter a monthly contribution of 1,000, one year, and a zero annual return. Twelve contributions total 12,000, and the ending value is 12,000. This is a useful check because it removes compounding from the calculation. If you intended to invest 12,000 every month rather than over the whole year, the contribution input must change; the time field does not make that distinction for you.

At a positive assumed return, this calculator treats each deposit as occurring at the beginning of its month. A tool using month-end deposits can show a smaller result even with the same contribution, annual rate, and duration. Compare that timing assumption before treating a discrepancy as a mistake. The site's monthly rate is the nominal annual percentage divided by twelve, not an independently specified effective monthly return.

Use scenarios rather than a single promised outcome

Save a zero-return baseline beside several clearly labelled growth assumptions. The comparison shows how the model reacts to a changed rate; it does not forecast the probability of achieving any particular value. A smooth annual assumption hides the timing and variability of actual gains and losses. The tool has no future price data, so adding more decimal places to the assumed rate does not make a projection more reliable.

If a goal has a known future cost, record that cost separately. A nominal ending balance cannot automatically be compared with today's purchasing power. Inflation, fees, taxes, and interrupted contributions may affect the amount available for that goal. This page does not choose an investment product or determine your tax treatment.

Keep the contribution schedule realistic

The regular SIP form assumes a constant monthly amount. Increasing it each year belongs in the step-up calculator, where the future contribution requirement is visible. If you stop payments for several months, a constant-deposit projection no longer describes your schedule. Recalculate using assumptions that match the question you are asking, and distinguish a hypothetical illustration from an actual account statement.

Reference: SEBI illustrative compound-interest calculator. Examples above use this calculator’s assumptions.