SIP Calculator
Future value of a monthly systematic investment plan with inflation-adjusted (real) corpus and yearly growth chart.
Inputs
Formula
- i = annual return / 12 / 100 ; n = years × 12
- FV = A × [((1 + i)ⁿ − 1) / i] × (1 + i) (investment at start of month)
- Invested = A × n
- Gain = FV − Invested
- Real value = FV / (1 + inflation)^years
A SIP is an annuity-due: each instalment compounds for the months remaining after it is invested, so the first instalment works the longest. The bracketed term is the future value of an ordinary annuity, and the extra (1 + i) shifts it to start-of-period contributions, which is how AMCs process SIPs. Because contributions are spread across market levels, the realised return is a rupee-cost-averaged XIRR rather than a point-to-point return.
Step-by-step calculation
Monthly return
12 / 12 / 100
0.010000
Instalments
15 × 12
180
Annuity factor
((1+i)^180 − 1) / i
499.580
Future value (annuity-due)
A × factor × (1 + i)
₹7,568,640
Amount invested
15,000 × 180
₹2,700,000
Real value
FV / (1 + 6%)^15
₹3,158,129
Assumptions
- Returns are assumed constant; real markets deliver the same average through very different paths.
- Contribution is made at the start of each month and units are allotted the same day.
- Expense ratio is already netted out of the return you enter.
- Exit load and capital-gains tax are not deducted.
Tips
- Time in market dominates: the final third of the tenure typically creates over half the corpus.
- Step up the SIP with your salary — see the Step-up SIP calculator.
- Use the real (inflation-adjusted) figure when planning goals decades away.
Warnings
- Equity returns are not guaranteed; use 10–12% for long-horizon equity, not past bull-market numbers.
- Stopping a SIP during a drawdown destroys most of the averaging benefit.
Standards & references
- SEBI mutual fund disclosure norms
- Future value of annuity-due
Frequently asked questions
Why does SIP FV differ from my AMC statement?
AMC statements use actual NAV history (XIRR). This calculator assumes a constant compounding rate, which is a planning estimate, not a backtest.
Should I use 12% or 15%?
For a diversified Indian equity fund, 10–12% is a defensible long-run planning assumption after expenses. Higher figures build fragile plans.
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