SIP Calculator
A Systematic Investment Plan (SIP) invests a fixed amount every month, so you buy more units when prices are low and fewer when they are high — averaging your cost over time. This calculator projects the future value of those monthly contributions, splits the corpus into what you invested versus what compounding earned, and works in any currency.
- Invested
- Returns
- Total invested
- $600,000.00
- Estimated returns
- $561,695.38
- Maturity value
- $1,161,695.38
You put in 600,000 across 120 monthly instalments and end with 1161695 — that is 1.94× what you contributed. Returns make up 48% of the final corpus.
Ways to optimize
Real what-if scenarios calculated from your numbers.
Scenarios use the exact same math as the calculator — no estimates.
Returns must exceed 7% inflation to grow real wealth over time
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What this calculator tells you
Breaks the SIP corpus into invested capital versus compounded returns and reports the growth multiple, while flagging that the smooth projection is an average — not a guaranteed path — and that the annuity-due model adds a month of growth most generic tools skip.
Frequently asked questions
Is the expected return guaranteed?+
No. The return you enter is an assumption based on historical averages for an asset class. Actual returns vary year to year and can be negative in any given period. Treat the result as an estimate of the average outcome, not a promise.
Why is the maturity value so much larger than what I invested?+
Because of compounding. Early instalments stay invested for years and earn returns on their returns. The longer your horizon, the larger the share of the corpus that comes from growth rather than your own contributions.
What is the difference between a SIP and a lumpsum investment?+
A SIP spreads your money across many months, averaging your entry price and reducing timing risk. A lumpsum invests everything at once, so it benefits from a longer compounding window if markets rise but is fully exposed to the price on the day you invest.
Can I use this calculator for any currency?+
Yes. The annuity formula is the same everywhere — only the currency symbol changes. Use the switcher at the top of the page.
Is SIP safe? Can I lose money in a SIP?+
SIP is a method of investing, not an investment itself — the safety depends on the underlying fund. Equity mutual fund SIPs can lose value in the short term; however, SEBI-regulated mutual funds in India are not allowed to promise guaranteed returns. Historically, diversified equity SIPs held for 7+ years have had a very low probability of negative returns, but past performance is not a guarantee.
SIP vs FD — which is better for long-term wealth?+
Fixed deposits offer guaranteed but taxable returns (typically 6–7.5% in 2025), while equity SIP returns are market-linked and historically higher over 10+ years but volatile. Interest on FDs is taxed as income; equity mutual fund gains above ₹1.25 lakh per year attract 12.5% long-term capital gains tax. For goals beyond 7 years, SIPs in diversified equity funds have generally outpaced FDs after inflation.
Can I pause or stop a SIP mid-way?+
Yes. Most Indian AMCs (asset management companies) allow you to pause a SIP for 1–3 months or cancel it entirely without any exit penalty, though exit loads may apply if you redeem units within a specified period (usually 1 year for equity funds). The units already purchased stay invested until you choose to redeem them.
How is the return on a SIP taxed in India?+
For equity mutual funds, gains on units held more than 12 months are taxed at 12.5% (LTCG) above an annual exemption of ₹1.25 lakh; gains on units held 12 months or less are taxed at 20% (STCG) as of FY 2024-25 rates. Each SIP instalment is treated as a separate purchase with its own holding period, so partial redemptions have mixed tax treatment depending on which units are sold (FIFO basis applies).
How it works
Each monthly instalment is a small lump sum that compounds for the remaining months in your horizon. The first instalment compounds the longest, the last barely at all, so the calculator treats the SIP as an annuity and sums the future value of every payment in one closed-form formula. Because most plans deduct at the start of the period, the standard SIP model is an annuity-due — each payment earns one extra month of growth versus an ordinary annuity.
The expected return is an assumption, not a guarantee. Equity markets are volatile year to year; the smooth curve this tool draws is the average outcome, and your real journey will be bumpier. Switch the currency at the top to view the projection in your own.
M = P · [((1 + i)^n − 1) / i] · (1 + i), where P = monthly investment, i = monthly return = annual rate ÷ 12 (as a decimal), and n = number of months = years × 12. The trailing (1 + i) treats each instalment as paid at the start of the month (annuity-due), which matches how most SIPs deduct. Estimated returns = M − (P × n).
Worked example
Invest 5,000 every month at an expected 12% annual return for 10 years. That is 120 instalments using a monthly rate of 1% (12% ÷ 12). The future value works out to about 1,161,695, of which you contributed 600,000 and compounding added roughly 561,695. In other words, returns make up nearly half the final corpus, and your money grows to about 1.94× what you put in.
Edge cases & caveats
A 0% expected return collapses the maths to simple totalling — you just get back your contributions. Very short horizons (under a year or two) leave little time to compound, so the corpus is dominated by invested capital and is highly exposed to short-term market swings. This tool assumes a fixed monthly amount and a constant return; a step-up SIP that raises the contribution each year, or one facing a real-world sequence of good and bad years, will land on a different number. It also ignores expense ratios, exit loads, and taxes, which trim the realised return.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-22