How to use the SIP Calculator
- Enter your monthly SIP amount.
- Enter an expected yearly return. Try a conservative and an optimistic rate to see the range.
- Enter the number of years, and a yearly step-up if you plan to raise your SIP as your income grows.
Formula
FV = P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i)
- P:
- monthly investment
- i:
- expected annual return ÷ 12 ÷ 100
- n:
- number of monthly instalments
How SIP returns are calculated
Each monthly instalment is invested and grows for the months that remain. Early instalments have the longest time to compound, which is why starting early matters more than investing a large amount later.
Important
Why a step-up helps
Raising your SIP by, say, 10% every year keeps your savings in line with salary increases. Over long periods, a modest step-up can make a large difference to the final value.
Worked example
₹5,000 a month for 10 years at 12% a year
- i = 12 ÷ 12 ÷ 100 = 0.01; n = 120
- Invested = 5,000 × 120 = ₹6,00,000
- FV = 5,000 × [(1.01¹²⁰ − 1) ÷ 0.01] × 1.01
Estimated value ≈ ₹11,61,695 (gains ≈ ₹5,61,695)
Important notes
- Taxes, exit loads and fund expense ratios are not included.
Frequently asked questions
What return should I assume for a SIP?
There's no single right number. Use a range that reflects the kind of fund and your time horizon, and plan with the lower end so you're not caught short.
Is SIP better than a lump sum?
A SIP spreads your investment over time, which reduces the risk of investing everything at a market peak and builds a saving habit. A lump sum invested early can grow more if markets rise steadily. Many people use both.
Does this calculator give financial advice?
No. It projects a scenario from the numbers you enter. For advice on what to invest in, speak to a SEBI-registered investment adviser.