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SIP Calculator

Estimate your mutual fund SIP returns, future value, and total wealth gained over any investment period.

SIP Investment Details

About This Calculator

A SIP (Systematic Investment Plan) lets you invest a fixed amount every month in mutual funds. The power of compounding grows your wealth exponentially over time. This calculator uses the standard future value of recurring investment formula.

How to Use This Calculator

  1. 1Enter your monthly SIP contribution
  2. 2Enter the expected annual return rate (12% is a common equity fund estimate)
  3. 3Enter your investment duration in years
  4. 4Click Calculate to see projected future wealth

Formula Used

Future Value = M × [(1+r)^n − 1] / r × (1+r) where r = monthly rate, n = months

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FAQ

Frequently Asked Questions

Common questions about the sip calculator answered.

Are SIP returns guaranteed?+
No. SIP returns depend on mutual fund performance and market conditions. The return rate in this calculator is an estimate for projection only. Actual returns can be higher or lower. Equity funds carry market risk while debt funds are comparatively more stable.
What is a realistic SIP return rate?+
Historically, Indian large-cap equity mutual funds have delivered 10 to 14 percent annual CAGR over 10-year or longer periods. Mid-cap funds have returned 12 to 18 percent with higher volatility. For conservative projections, 10 to 12 percent is commonly used by financial planners.
What is the minimum SIP amount?+
Most Indian mutual funds allow SIP investments from Rs 500 per month. Some platforms offer micro-SIPs from Rs 100 per month. Higher monthly amounts naturally build more wealth over time through the power of compounding.
Can I pause or stop my SIP?+
Yes. Most mutual fund SIPs allow you to pause contributions for up to three months or stop without penalty. You can also increase or decrease your monthly amount. Units already accumulated continue to grow while invested.
How does compounding work in SIP?+
Each monthly SIP contribution immediately starts earning returns. Over time, returns also earn returns, creating exponential compounding growth. For example, Rs 5,000 per month at 12 percent returns grows to approximately Rs 49.96 lakh in 20 years from only Rs 12 lakh invested.

Power of Long-Term SIP Investing

Investing Rs 5,000 monthly at 12 percent annual returns for 20 years generates a corpus of nearly Rs 50 lakh from just Rs 12 lakh invested. The remaining Rs 38 lakh is pure compounding return. Starting 5 years earlier can nearly double this corpus. This illustrates why starting SIP investments early is the single most powerful wealth-creation action.

  • Start early to maximise the compounding benefit
  • Increase SIP amount annually as income grows
  • Stay invested through market downturns for best results
  • Diversify across large-cap, mid-cap and hybrid funds

SIP vs Fixed Deposit Returns

Fixed deposits offer guaranteed returns of 6 to 8.5 percent with full capital protection. SIPs target 10 to 14 percent returns through equity exposure with market risk. Over 15 to 20 years, the SIP corpus typically far exceeds an equivalent FD corpus due to the higher compounding rate. For long-term goals, SIP is generally more beneficial despite short-term volatility.

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