Investment Calculator

SIP Calculator

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

Published by Calculator All-in-OneLast reviewed: 12 August 2026Formula checked: recurring investment projectionTesting and editorial standards

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 x (((1 + r)^n - 1) / r) x (1 + r), where M is monthly investment, r is monthly return, and n is total months.

The formula compounds each monthly contribution for the months it stays invested, which is why early instalments contribute far more to the final value than late ones. Doubling the duration of a SIP usually more than doubles the maturity value — time in the market is the dominant variable in this equation, not small changes in the monthly amount.

Understanding each input

Monthly investment — the fixed amount debited every month. The model assumes you never skip an instalment.
Expected annual return — a percentage assumption. Long-term equity index averages are often quoted around 10–13 percent, but any single decade can be far above or below that. Try a pessimistic and an optimistic value.
Time period in years — how long you keep investing. The formula converts this to months and compounds monthly.

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

Look at the ratio of estimated returns to invested amount. If growth is a small slice, either the duration is short or the return assumption is conservative — both worth knowing before you rely on the number. Treat the maturity value as the centre of a range: real results a few percentage points either side are normal.

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.

AdSense review note

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. See the editorial standards and site disclaimer for the review process and safety limits.