How to use the SIP calculator
- Enter how much you'll invest every month.
- Enter the yearly return you expect, and how many years you'll keep investing.
- Optionally, add a yearly step-up to raise the instalment each year.
- Read the maturity value, how much of it you invested, and the estimated returns, then check the year-by-year table.
The SIP formula
FV = P × ((1 + i)n − 1) ÷ i × (1 + i)
- P is the monthly investment.
- i is the monthly return: the expected yearly return ÷ 12 ÷ 100.
- n is the number of monthly instalments.
Each instalment grows for the months left until the end, and the formula adds them all up. The calculator assumes every instalment is invested at the start of its month (that's the extra× (1 + i)) and that the return is the same every month, as most fund houses' SIP calculators do. With a step-up, the instalment is raised at the start of each year and the calculator adds up each month's instalment the same way.
Worked example
₹10,000 a month for 10 years at an expected 12% a year:
- i = 12 ÷ 12 ÷ 100 = 0.01, and n = 120.
- FV = 10,000 × (1.01120 − 1) ÷ 0.01 × 1.01 ≈ ₹23,23,391.
- You invest ₹12,00,000, so the estimated returns are ₹11,23,391.
With a 10% yearly step-up, the same start grows to about ₹33,74,326, from ₹19,12,491 invested.
What ₹10,000 a month could grow to
| Return | 5 years | 10 years | 15 years | 20 years | 25 years |
|---|---|---|---|---|---|
| Invested | ₹6,00,000 | ₹12,00,000 | ₹18,00,000 | ₹24,00,000 | ₹30,00,000 |
| 8% a year | ₹7,39,667 | ₹18,41,657 | ₹34,83,451 | ₹59,29,472 | ₹95,73,666 |
| 10% a year | ₹7,80,824 | ₹20,65,520 | ₹41,79,243 | ₹76,56,969 | ₹1,33,78,903 |
| 12% a year | ₹8,24,864 | ₹23,23,391 | ₹50,45,760 | ₹99,91,479 | ₹1,89,76,351 |
Returns aren't guaranteed
Real funds don't earn the same return every year: markets rise and fall, and the order of good and bad years changes the result. Use the calculator to compare amounts, periods and step-ups, not as a promise of what you'll get. The figures are before tax on gains and before any exit load. For a fixed rate, such as a recurring or fixed deposit, thecompound interest calculator fits better.
Common uses
- Planning for a goal. Find the monthly SIP that could grow to a target, such as a house down payment or a child's education, by trying amounts and periods.
- Seeing the effect of a step-up. Compare a flat SIP with one that rises 5% or 10% a year to see how much more raising your instalment with your salary could add up to.
- Starting early versus late. Run the same monthly amount over 10 and 20 years to see how much of the final value comes from compounding rather than from what you put in.