Advertisement
₹500₹10 Cr
%
1%30%
Yrs
1 Yr40 Yrs
Total value ₹0
  • Invested amount₹0
  • Est. returns₹0
  • Total value₹0

Year-by-year growth

Invested Returns

Want to actually understand what you're investing in?

Our courses walk you through reading a fund, not just projecting one.

Explore courses →

This calculator gives an estimate based on a constant assumed rate of return. It is for planning purposes only and is not investment advice or a guarantee of actual mutual fund performance.

What is a SIP calculator, and how does it work?

A SIP calculator is a planning tool, not a prediction engine. It takes three inputs how much you invest, how often (in this case, monthly), and for how long along with an assumed annual rate of return, and projects what your investment could be worth by the end of that period. It doesn't know what any specific mutual fund will actually return; it simply does the compounding maths so you don't have to.

Under the hood, a Systematic Investment Plan behaves like a growing annuity: every monthly instalment gets a different amount of time to compound, because money you put in during month one has far longer to grow than money you put in during the final month. The calculator adds up the compounded value of every single instalment to arrive at the total maturity value.

SIP vs lumpsum: what's actually different?

Both are simply modes of getting money into the same underlying investment. A SIP spreads your capital across many purchase dates, which averages out the price you pay over time and removes the pressure of trying to time the market useful when you're investing out of monthly income. A lumpsum investment puts your entire amount to work on a single day, so it starts compounding sooner, but its outcome depends more heavily on where the market happens to be on that one day.

FactorSIPLumpsum
Best suited forRegular income, salaried investorsA large sum already on hand bonus, maturity payout
Market timing riskAveraged out over timeConcentrated on the entry date
Discipline requiredOngoing, automaticOne decision, then it's invested
Compounding startsGradually, instalment by instalmentImmediately, on the full amount

How the maths behind this calculator works

For SIP, the calculator uses the standard future value of a growing annuity formula: each month's instalment compounds at the monthly equivalent of your expected annual rate, for however many months remain until the end of your chosen period, and all of those compounded instalments are added together. For lumpsum, it's simpler your one-time amount compounds annually at your expected rate for the full time period, following the standard compound interest formula.

In both cases, "estimated returns" shown in the chart is just the difference between the projected total value and the amount you actually put in it's the portion attributable to compounding, not a separate guaranteed figure.

How to get the most useful estimate

Use a rate of return that matches the type of fund you're actually considering, not an optimistic guess equity, hybrid and debt funds have very different long-term averages. Run the numbers at more than one rate (say a conservative and an optimistic case) so you can see the range of outcomes rather than anchoring on a single number. And treat the time period honestly: SIP outcomes are shaped far more by how long you stay invested than by fine-tuning the monthly amount.

FAQs

Common questions about this calculator

What is a SIP calculator?

A free online tool that estimates the future value of a Systematic Investment Plan. Enter your monthly investment amount, an expected annual rate of return and the investment period, and it projects your invested amount, estimated returns and total maturity value.

What is the difference between SIP and lumpsum investing?

In a SIP, you invest a fixed amount at regular intervals, usually monthly, which spreads your purchase price across market ups and downs. In a lumpsum investment, you invest the full amount in one go, so your entire capital starts compounding immediately but is more exposed to the market level on the day you invest.

How is SIP return calculated?

SIP returns are calculated using the future value of a growing annuity formula, which compounds each monthly instalment for the remaining months in the investment period at the assumed monthly rate of return, then sums them up.

Is the SIP calculator result guaranteed?

No. The calculator only projects an estimate based on the constant annual return rate you enter. Actual mutual fund returns vary with market performance and are never guaranteed or fixed.

What is a good expected rate of return to use?

Many investors use a long-term average of 10-12% per year for equity mutual funds as a starting assumption, but this is only a planning estimate. Adjust the rate based on the fund category and your own research.

Can I use this calculator for lumpsum investments too?

Yes. Switch to the Lumpsum tab, enter your one-time investment amount, expected annual return and time period, and the calculator will project the future value using annual compounding.

Does a higher SIP amount always mean higher returns?

A higher monthly SIP amount does increase your total invested capital and, in turn, your final corpus at the same rate of return. But the rate of return and how long you stay invested usually matter more to long-term growth than the size of any single instalment.

Chat with us