SIP Calculator

A SIP (Systematic Investment Plan) is a way to invest a fixed amount in mutual funds every month. Because you buy units regularly at whatever the fund's price is, you naturally buy fewer units when prices are high and more when they are low — this "rupee cost averaging" smooths out market ups and downs.

How the calculation works

Each monthly contribution earns returns until the end of the period, and those returns compound. The future value of a series of equal monthly payments is:

FV = P × [((1 + r)ⁿ − 1) / r] × (1 + r)

• P — your monthly investment
• r — monthly return = expected annual return ÷ 12 ÷ 100
• n — number of months

If you enable a step-up, your monthly contribution increases by that percentage each year — a common strategy that lets small starting amounts grow into large savings as your income grows.

Worked example

Invest ₹10,000 every month for 10 years expecting 12% annual returns:

• r = 0.01, n = 120
• FV = 10,000 × [(1.01¹²⁰ − 1) / 0.01] × 1.01 ≈ ₹23,23,391

You invest ₹12,00,000 in total and earn roughly ₹11,23,391 in returns. With a 10% yearly step-up, the maturity value roughly doubles compared to a flat SIP over the same period.

Important caveat

SIPs invest in the market, so returns are not guaranteed. The 12% default is an expectation, not a promise. Equity funds can fall short of (or beat) that figure depending on the market — this calculator helps you plan, but past performance never guarantees future results.