SIP Calculator
Calculate returns on your SIP (Systematic Investment Plan) instantly. See total value, estimated returns, and wealth ratio. Free online SIP calculator for mutual funds.
What is a SIP calculator?
A SIP calculator estimates how much your monthly mutual fund investment will grow over time at an assumed rate of return. It shows you the total amount invested, the estimated returns, and the final corpus — so you can plan your financial goals with clarity.
The power of compounding in SIPs
The biggest advantage of a long-term SIP is compounding — your returns earn returns. A ₹5,000/month SIP at 12% for 10 years yields ~₹11.6 lakh on a ₹6 lakh investment. The same SIP for 20 years yields ~₹49.9 lakh — nearly 8x the invested amount. The longer you stay invested, the more compounding does the work.
SIP vs lump sum
SIP spreads your investment across market cycles through rupee cost averaging — you buy more units when markets are low and fewer when they are high. Lump sum investing can outperform SIP in a consistently rising market, but SIP reduces timing risk and suits salaried investors who invest from monthly income.
Frequently asked questions
- What is a SIP?
- SIP (Systematic Investment Plan) is a way to invest a fixed amount in a mutual fund every month. Instead of investing a lump sum, you invest regularly — which averages out your purchase cost over time (rupee cost averaging) and benefits from the power of compounding.
- How is SIP return calculated?
- The formula is FV = P × {[(1 + r)ⁿ – 1] / r} × (1 + r), where P is the monthly investment, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of months. This assumes a constant return rate, which is a simplification — actual mutual fund returns vary.
- What return rate should I use?
- Historical long-term average returns: large-cap equity mutual funds ~10–12% p.a., mid/small-cap ~12–15% p.a., debt funds ~6–8% p.a. Use 12% as a conservative estimate for diversified equity funds over a 10+ year horizon. These are not guaranteed.
- What is wealth ratio?
- Wealth ratio = total value ÷ amount invested. A wealth ratio of 3x means your investment tripled. The higher and the longer the investment period, the higher the wealth ratio due to compounding.
- Does this account for inflation?
- No. This calculator shows nominal returns. To get real (inflation-adjusted) returns, subtract the inflation rate from the expected return rate. For example, if you expect 12% returns and inflation is 6%, use 6% as your effective return rate.