SIP Calculator
Updated · By the CalculatorDash editorial team · How we check our maths
Quick answer
SIP maturity value = P × ((1 + i)^n − 1) ÷ i × (1 + i), where P is the monthly amount, i the monthly return and n the number of months. ₹10,000 a month for 15 years at an expected 12% a year grows to about ₹50.5 lakh, of which ₹18 lakh is your own money.
How this calculator works
A systematic investment plan (SIP) invests a fixed amount every month, usually in a mutual fund. Because each instalment compounds for a different length of time, the maturity value is the future value of a series of payments rather than a single lump sum.
This calculator uses the formula most Indian fund houses and platforms use for illustration, which assumes each instalment is invested at the start of the month. Real returns vary year to year, so treat the result as a planning estimate, not a forecast.
The formula
- Monthly return (i)
- expected annual return ÷ 12 ÷ 100
- Maturity value
- P × ((1 + i)^n − 1) ÷ i × (1 + i)
- Gains
- maturity value − P × n
Worked example
Investing ₹10,000 a month for 15 years (180 months) at an assumed 12% a year: i = 0.01, so the value is 10,000 × (1.01^180 − 1) ÷ 0.01 × 1.01 ≈ ₹50.46 lakh. You invest ₹18 lakh, so estimated gains are about ₹32.5 lakh.
Tips
- 01Starting five years earlier often matters more than investing a larger amount later.
- 02Increase your SIP each year with your salary (a step-up SIP) to keep pace with inflation.
- 03Use conservative return assumptions for planning: 10–12% for equity funds and lower for debt funds.
Frequently asked questions
How is SIP return calculated?
Most calculators use M = P × ((1 + i)^n − 1) ÷ i × (1 + i), where P is the monthly instalment, i is the monthly rate of return and n is the number of instalments.
What return should I assume for an SIP?
Past equity mutual fund returns have often been in the 10–15% range over long periods, but there is no guarantee. Many planners use 10–12% for equity and 6–8% for debt funds.
Is SIP better than a lump sum?
An SIP spreads purchases over time and builds a habit. A lump sum can earn more if markets rise steadily, but carries more timing risk.
Are SIP gains taxed?
Yes. Gains on equity mutual funds are subject to capital gains tax in India depending on how long the units are held. Check the current rules or ask a tax adviser.