SIP Calculator
Estimate the future value of monthly SIP investments with compound growth.
About SIP Calculator
The SIP Calculator projects the future value of a Systematic Investment Plan. Enter your monthly contribution, expected annual return and investment duration to see the projected corpus, the total you will have invested and the estimated gains under monthly compounding.
Adjusting the monthly amount or the number of years makes the effect of compounding tangible: small increases in tenure or contribution often change the final corpus more than people expect. The invested-total versus estimated-gain split separates what you put in from growth assumed by the model.
Treat the output as a planning scenario, not a forecast of any specific mutual fund or index. Real market returns vary month to month, expense ratios and taxes reduce net proceeds, and a smooth assumed annual rate cannot show drawdowns, missed SIPs or lumpsum top-ups.
How SIP Calculator works in practice
- 1Enter the monthly SIP amount you plan to invest.
- 2Enter the expected annual return as a percentage.
- 3Set the investment duration in years.
- 4Read the projected corpus, total invested and estimated gains as they update.
- 5Change one input at a time (amount, rate or years) to compare alternative plans side by side.
Jobs this tool is built for
- Estimate how a fixed monthly contribution might grow toward an education or retirement goal.
- Compare the effect of investing for 10 years versus 15 years at the same contribution.
- Test conservative and optimistic return assumptions before setting a savings target.
- Separate total contributions from projected growth when reviewing an investment plan with family or an advisor.
What you can do here
- Future-value projection with monthly compounding
- Total invested vs estimated gains breakdown
- Instant recalculation on every input change
- Works with any currency unit you enter
- Simple three-input model suitable for quick goal sketches
Limits and honest caveats
- Projections are pre-tax and assume a constant annualised return — actual market returns fluctuate and are not guaranteed.
- Fund expense ratios, exit loads, transaction costs and taxes on gains are not deducted from the displayed corpus.
- The calculator models a flat monthly SIP; it does not simulate step-ups, pauses, lumpsums or changing asset allocations.
How the result is produced
The projection is the future value of a monthly annuity. It assumes every instalment is invested and the annual rate you typed is earned evenly, month after month.
- 1.Turn the annual percent into a monthly rate: i = (annual percent / 100) / 12.
- 2.Count instalments: n = years × 12.
- 3.Future value = P × [((1+i)ⁿ − 1) / i] × (1+i). P is the monthly amount.
- 4.Total invested is P × n. Estimated gain is future value minus that total. Expenses and tax are not subtracted.
Worked example: ₹5,000 a month at 12% for 10 years
i = 0.01 and n = 120. The formula gives a corpus of about ₹11.62 lakh. You would have paid in ₹6 lakh, so the model attributes about ₹5.62 lakh to growth. A fund that averages 12% with a bumpy path, or that charges an expense ratio, will not land on that figure.
Common questions about SIP Calculator
What return should I assume?
Historical Indian equity mutual funds have often averaged roughly 10–14% annually over long periods; many conservative planners use around 10% for goal sketches. Match the rate to the risk of the asset class you actually intend to hold.
Can I model a step-up SIP?
Not directly — the calculator assumes a constant monthly amount. Approximate a step-up by running separate scenarios for each contribution level and combining the results manually.
Are taxes and fund expenses included?
No. The displayed corpus is a mathematical projection before expenses and tax. Expense ratios, transaction costs and capital-gains tax will reduce realisable proceeds.
Does monthly compounding mean returns arrive evenly?
No. Monthly compounding is a modelling convenience. Market prices move irregularly, and each SIP instalment buys units at a different NAV.
Is the projected corpus guaranteed?
No. It is an illustration based on the rate you enter. Markets can deliver lower or negative returns over some periods, especially over short horizons.
This page was written by the ToolSink team to explain how SIP Calculator works on this site — it is not syndicated, scraped, or spun from another publisher. How we write tool guides · Site updates · About ToolSink.
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