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SIP Calculator

Calculate the future value of your Systematic Investment Plan (SIP) in mutual funds.

₹5,000
12%
10 yrs

Maturity Value

₹11,61,695

in 10 years @ 12% p.a.

Total Invested

₹6,00,000

Est. Returns

₹5,61,695

Growth Over Time

How SIP Returns Are Calculated

SIP Formula (Compound Interest)

M = P × { [(1 + r)ⁿ − 1] / r } × (1 + r)
  • M = Maturity value
  • P = Monthly SIP amount
  • r = Monthly interest rate = Annual rate ÷ 12 ÷ 100
  • n = Number of months (years × 12)

SIP works on the principle of compounding — each month's investment earns returns, and those returns earn further returns over time. This compounding effect accelerates wealth creation significantly in the later years of your investment.

📈 Power of compounding

A ₹5,000/month SIP at 12% for 10 years gives ₹11.6 L invested but ₹11.5 L in returns — nearly doubling your money. At 20 years, returns are 3× the amount invested.

⏱ Time matters most

Starting 5 years earlier can double your final corpus. A ₹5,000/month SIP for 25 years at 12% gives ₹94 L — vs ₹49 L for just 20 years. Start early, stay invested.

Frequently Asked Questions

What is SIP?
SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in a mutual fund scheme, typically monthly.
Is SIP better than lumpsum?
SIP benefits from rupee-cost averaging — you buy more units when markets are low and fewer when high. It reduces timing risk compared to a lumpsum investment.
What is a good SIP return rate to assume?
Historically, Indian equity mutual funds have delivered 12-15% CAGR over long periods. For conservative estimates, use 10-12%.
Can I increase my SIP amount?
Yes, most mutual funds offer a Step-Up SIP option where you can increase your SIP amount by a fixed percentage each year.

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