SIP Calculator
Calculate your Systematic Investment Plan returns. See how small monthly investments can grow into massive wealth over time.
Calculate Your SIP Returns
Investment Breakdown
Year-wise Growth
How the SIP Calculator Works
What Is a SIP and How Does It Work?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount into a mutual fund at regular intervals — usually monthly. Instead of trying to time the market with a single large investment, you invest small amounts consistently, letting the power of compounding and rupee-cost averaging work in your favour.
The magic of SIP is that it removes emotion from investing. When markets fall, your fixed monthly amount buys more units at lower prices. When markets rise, you buy fewer units but your existing units gain value. Over a full market cycle, this averaging produces a lower average cost per unit than a lump sum invested on any single day.
For salaried investors in particular, SIP is a natural fit — your income arrives monthly, so your investments do too. Even ₹500/month, invested consistently for 20–30 years, grows into a substantial corpus.
The SIP Formula (Explained in Plain English)
The SIP future value formula is: FV = M × [((1+i)^n − 1) / i] × (1+i), where M is the monthly investment, i is the monthly rate of return (annual rate ÷ 12 ÷ 100), and n is the total number of monthly instalments.
The formula has three parts. The term ((1+i)^n − 1) / i accumulates the compounding effect of each monthly instalment over the remaining period. The × (1+i) adjusts for the fact that SIP instalments are typically made at the start of each month. The result is the total corpus you'll accumulate at the end of the tenure.
What makes this powerful is that small differences in rate or duration produce large differences in outcome. A 10-year SIP at 12% produces roughly half the corpus of a 15-year SIP at the same rate — because compounding needs time to accelerate.
Why Time Matters More Than Amount
For a fixed target corpus, the required monthly SIP falls dramatically as the investment horizon lengthens. If you want ₹1 crore at age 60, starting a SIP at age 25 requires roughly ₹1,000/month at 12% returns. Starting at 35 requires ₹3,000/month. Starting at 45 requires ₹11,000/month. Starting at 55 requires ₹60,000/month.
The lesson is clear: the earlier you start, the less you need to invest every month. Every year of delay makes the required contribution grow by 40–80% — compounding is a ruthless judge of procrastination.
Step-by-Step Worked Example
Let's walk through a practical scenario: You invest ₹10,000/month at 12% expected annual return for 20 years.
- 1Convert the annual rate to a monthly rate: 12 ÷ 12 ÷ 100 = 0.01 (1% per month).
- 2Calculate the total number of instalments: 20 years × 12 = 240 months.
- 3Compute (1 + i)^n = (1.01)^240 = 10.8926.
- 4Numerator: 10.8926 − 1 = 9.8926.
- 5Divide by i: 9.8926 ÷ 0.01 = 989.26.
- 6Multiply by (1 + i): 989.26 × 1.01 = 999.15.
- 7Multiply by monthly investment: ₹10,000 × 999.15 = ₹99,91,500.
- 8Total invested = ₹10,000 × 240 = ₹24,00,000.
- 9Returns = ₹99,91,500 − ₹24,00,000 = ₹75,91,500.
Result
Total amount invested: ₹24,00,000
Estimated returns: ₹75,91,500
Final corpus: ₹99,91,500 (~₹1 crore)
Return multiple: 4.16x your invested amount
Key Benefits & Use Cases
When to Use This Tool
- ✓Building a retirement corpus over 20–30 years — SIPs are the most efficient way to accumulate for long-term goals.
- ✓Saving for a child's higher education 15+ years away, where equity compounding delivers inflation-beating returns.
- ✓Creating a habit of monthly investing for beginners who find lump-sum investing intimidating.
- ✓Riding out market volatility — SIPs let you invest without worrying about market timing.
- ✓Automating wealth creation so investments happen before you spend the money elsewhere.
Why It Matters
- →Rupee-cost averaging means you automatically buy more units when prices are low.
- →Removes the need to time the market — you invest consistently regardless of market levels.
- →Matches salaried cash flow (income arrives monthly, so does your SIP).
- →Compounding accelerates dramatically in the final third of the investment period.
- →Start with as little as ₹500/month — no barrier to entry.
Who Should Use This Calculator
- ★Salaried professionals with regular monthly income and no large lump sum to invest.
- ★First-time investors who want to build wealth without market-timing stress.
- ★Anyone investing for goals 10+ years away — retirement, education, home purchase.
- ★Experienced investors who want to add systematic exposure alongside existing lump-sum positions.
Visual Charts
Beautiful pie charts and bar graphs to visualize your investment growth.
Instant Results
Get real-time calculations as you adjust your investment parameters.
Accurate Formula
Uses the standard SIP formula used by all major financial institutions.
How to Use
Enter Monthly Amount
Set how much you want to invest every month via SIP.
Set Expected Return
Choose your expected annual return rate (12% is a good average).
Choose Duration
Select how many years you want to stay invested.
See Results
Instantly see your total wealth, returns, and beautiful charts.
The Formula
M × ({[1 + i]^n – 1} / i) × (1 + i)Frequently Asked Questions
What is a SIP?
SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds. It helps in rupee cost averaging and building wealth over time through the power of compounding.
What is a good monthly SIP amount?
It depends on your income and goals. A common rule is to invest at least 20% of your income. Even ₹500/month can grow to over ₹50 lakhs over 30 years at 12% returns — the discipline matters more than the amount.
What return rate should I expect?
Equity mutual funds have historically given 12–15% returns over long periods. For conservative estimates, use 10–12%. For debt funds, use 6–8%. The rate you choose in this calculator should reflect the fund category you're investing in.
Is SIP better than lumpsum?
SIP is better for most people because it averages out market volatility and doesn't require a large upfront amount. Lumpsum can be better in trending bull markets or when you receive a windfall. Most investors should use SIP for regular income and lumpsum for one-time windfalls.
Can I change my SIP amount later?
Yes. Most mutual fund companies allow you to increase, decrease, or stop your SIP anytime. Many investors use a step-up SIP where they increase the monthly amount by 10% each year to match salary growth.
What happens if I stop my SIP midway?
You can stop your SIP at any time, and the units you've already accumulated remain invested and continue to earn returns. However, stopping breaks the compounding cycle — even a few years of pause can significantly reduce the final corpus.
Should I continue SIP during market crashes?
Absolutely. Market crashes are when SIP works best — your fixed monthly amount buys more units at lower prices. Investors who stopped SIPs during the 2008 and 2020 crashes missed generational buying opportunities.
How do I start a SIP?
Choose a mutual fund platform (Zerodha Coin, Groww, Kuvera for direct plans), complete KYC, select a fund (a Nifty 50 index fund is a great start), and set up a monthly SIP. The whole process takes about 15 minutes.
Reviewed by AutoWealthLab Editorial Team
This calculator and its accompanying guide are maintained by the AutoWealthLab editorial team. Every formula is verified against standard financial references, and results are cross-checked with independent calculators before publishing. Our tools are updated whenever tax rules, interest rate benchmarks, or regulatory formulas change.
Last reviewed: October 2026 · Methodology: Standard amortization and compound interest models · Learn more about our testing process