SIP Calculator

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Future value of a monthly systematic investment plan with inflation-adjusted (real) corpus and yearly growth chart.

Inputs

Currency

Monthly investment

Expected return (% p.a.)

Investment period (years)

Inflation (for real value) (% p.a.)

How to use this calculator: SIP Calculator

Future value of a monthly systematic investment plan with inflation-adjusted (real) corpus and yearly growth chart. The example below is calculated by this page's real engine from the displayed inputs.

1Enter the amount you plan to invest every month. Start with an amount that you can invest consistently without affecting essential expenses.
2Enter an estimated annual return percentage. Mutual-fund returns are not guaranteed, so use a realistic long-term assumption rather than a promised return.
3Choose how many years you intend to continue the SIP. Longer investment periods allow more time for compounding.
4Review the total amount invested and the estimated future value. The difference represents projected growth, not a guaranteed profit.

Input guide and example values

Use values from the same measurement basis and time period. Conditional fields appear only when the related option is selected.

Input	Example value	Why it matters
Currency	₹ Indian Rupee (INR)	Select the option that matches the real installation or scenario.
Monthly investment	15000	Measured or known monthly investment used by the calculation engine.
Expected return	12 % p.a.	Measured or known expected return used by the calculation engine.
Investment period	15 years	Measured or known investment period used by the calculation engine.
Inflation (for real value)	6 % p.a.	Measured or known inflation (for real value) used by the calculation engine.

Formula, derivation and worked example

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.

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

Substitution steps

1. Monthly return
12 / 12 / 100
= 0.010000
2. Instalments
15 × 12
= 180
3. Annuity factor
((1+i)^180 − 1) / i
= 499.580
4. Future value (annuity-due)
A × factor × (1 + i)
= ₹7,568,640
5. Amount invested
15,000 × 180
= ₹2,700,000
6. Real value
FV / (1 + 6%)^15
= ₹3,158,129

Computed example results

Maturity value: ₹7,568,640
Total invested: ₹2,700,000
Wealth gained: ₹4,868,640; 180% over cost
Inflation-adjusted value: ₹3,158,129; In today's money at 6% inflation
Effective growth multiple: 2.80×
Approx. annualised return on cost: 7.11%

Understanding the result

Read the main result together with supporting checks, assumptions, limits and intermediate values.

For a manual check, repeat the first equation, confirm the units and change one input at a time.

Common mistakes when using SIP Calculator

Do not mix units for Expected return (% p.a.), Investment period (years), Inflation (for real value) (% p.a.). A unit mismatch changes the input magnitude even when the typed number looks reasonable.
Do not leave Currency on the default choice unless that choice matches the real scenario; the selected option can change the calculation path or factor.
Do not replace the displayed i = annual return / 12 / 100 ; n = years × 12 relationship with a different convention without also changing the underlying assumptions; compare like-for-like methods when checking the result.
Do not treat Maturity value = ₹7,568,640 from the worked example as a universal answer. It belongs to the displayed example inputs and must be recalculated for the actual case.

Next logical calculator

Continue with Lumpsum Calculator

Useful next check because both tools use Currency and Expected return, while Lumpsum Calculator answers a different part of the same workflow.

Open Lumpsum Calculator

Standards, source trail and limitations

References show the method used. Check the current local edition, amendments and project specification before a regulated decision.

SEBI mutual fund disclosure norms
Future value of annuity-due

What is a SIP?

A Systematic Investment Plan, or SIP, is a method of investing a fixed amount regularly into a mutual fund. It can help investors build discipline and spread investments across different market levels.

Instead of investing one large amount at once, investors contribute monthly or at another regular interval. This approach is commonly called rupee-cost averaging.

Why investment duration matters

Compounding becomes more meaningful when investments stay invested for longer periods. The earliest SIP instalments get the most time to grow.

A SIP should be selected based on your risk capacity, goals, emergency fund and investment horizon, not only on historical return percentages.

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

Engineering notes

Use an expected return rate for planning only; it is not a promise of future performance.
Review fund risk, expense ratio, investment goal and exit-load rules before investing.
Keep an emergency fund and suitable insurance before committing money to long-term market investments.

Formulas explained

M = P × ((1 + r)^n − 1) / r × (1 + r)

This formula estimates the future value of regular monthly investments made at the beginning of each investment period.

M: Estimated maturity value
P: Monthly SIP investment amount
r: Monthly estimated return rate
n: Total number of monthly investments

Actual mutual-fund returns vary with market performance. This calculation is an illustration, not investment advice or a guaranteed return.

SIP is not guaranteed

SIP is an investment method, not a return guarantee. Mutual-fund values can rise or fall, and returns depend on market conditions and the selected fund.

Step-up SIP option

If income rises each year, increasing the SIP amount gradually may help you invest more toward long-term goals without a large immediate commitment.

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

How much should I invest in SIP every month?

Choose an amount that fits your monthly budget after essentials, emergency savings and insurance. The right SIP amount depends on your goal, timeline and risk capacity.

Are SIP returns guaranteed?

No. Mutual-fund returns depend on market performance. The calculator gives an estimated maturity value using your selected expected return rate.

Can I increase my SIP amount later?

Many investment platforms allow a step-up SIP or a new SIP with a higher amount. Check the rules of your fund platform or distributor.

What inputs does the SIP Calculator use?

It uses Currency, Monthly investment, Expected return, Investment period, and Inflation (for real value). Follow the unit printed for each field and choose any selectable option to match the real scenario.

What does the SIP Calculator calculate?

It calculates Maturity value, Total invested, Wealth gained, Inflation-adjusted value, Effective growth multiple, and Approx. annualised return on cost. With the displayed default inputs, Maturity value is ₹7,568,640.

Which formula does the SIP Calculator use?

The primary relationship is i = annual return / 12 / 100 ; n = years × 12. The page also shows substituted values and calculation steps so the result can be checked independently.

How can I verify a SIP Calculator result?

First verify the units for Currency, Monthly investment, and Expected return. Then compare the substituted formula steps with Maturity value and its displayed precision.

What are the limitations of the SIP Calculator?

SIP Calculator: This is an estimate, not a lender offer. Verify fees, taxes, rate changes, eligibility and repayment terms in the official product documents.

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