SIP Calculator
Calculate your Systematic Investment Plan (SIP) returns. See how much wealth you can build by investing a fixed amount regularly in mutual funds.
Estimated Future Value
How SIP Works
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (usually monthly) in mutual funds. SIP benefits from rupee cost averaging and the power of compounding over time.
P = Monthly investment, r = Monthly rate, n = Months
Example
₹10,000/month at 12% for 20 years:
Total Invested: ₹24,00,000
Estimated Value: ≈ ₹99,91,479
Wealth Gain: ≈ ₹75,91,479
Important
SIP returns depend on market performance. The expected return rate is an assumption — actual returns may be higher or lower. Past performance does not guarantee future results.
Worked example: ₹5,000/month SIP over different durations
Assuming a 12% annual return (a commonly used long-term equity mutual fund assumption — not a guarantee):
| Duration | Total Invested | Estimated Value | Wealth Gained |
|---|---|---|---|
| 5 years | ₹3,00,000 | ₹4,12,432 | ₹1,12,432 |
| 10 years | ₹6,00,000 | ₹11,61,695 | ₹5,61,695 |
| 15 years | ₹9,00,000 | ₹25,22,880 | ₹16,22,880 |
| 20 years | ₹12,00,000 | ₹49,95,795 | ₹37,95,795 |
The gap between total invested and estimated value widens dramatically after year 10 — this is compounding, and it is the entire mathematical case for starting a SIP early rather than a larger amount later.
SIP vs. lump sum — which wins?
Neither wins universally. SIP averages your purchase price across market ups and downs (rupee-cost averaging), which reduces timing risk — useful when investing from regular income. A lump sum invested at a market low can outperform a SIP of the same total amount, but requires correctly timing that low, which is unreliable even for professionals. For most individual investors investing from salary, SIP is the more disciplined and lower-risk default; a lump sum makes more sense for a windfall you do not want to time yourself.
Common SIP mistakes
- Stopping SIPs during a market downturn. This is exactly when rupee-cost averaging buys more units per rupee — stopping defeats the strategy’s core benefit.
- Assuming a fixed return rate. The 12% used above (and by most SIP calculators) is an illustrative assumption based on long-term historical equity averages, not a guaranteed or predicted return.
- Ignoring the expense ratio. A fund with a 2% expense ratio vs. a 0.5% one compounds to a meaningfully different final value over 15–20 years.
- Not increasing SIP amount with income. A step-up SIP that rises with your salary compounds significantly more than a flat amount held constant for 20 years.