A SIP (Systematic Investment Plan) calculator helps mutual fund investors in India and beyond forecast the maturity value of regular monthly investments with compound growth. It's the go-to tool for anyone investing in equity or debt funds through monthly SIPs.
How to Use This Calculator
- Enter your monthly investment amount (e.g., ₹5,000).
- Enter the expected annual return rate (e.g., 12% for equity mutual funds historically).
- Enter the investment duration in years.
- Click Calculate to see estimated maturity value and total invested.
What This Calculator Measures
- Monthly SIP amount — The fixed amount invested every month.
- Expected return rate — The assumed annual rate of return on the fund.
- Investment horizon — Total number of years you plan to invest.
- Maturity value — The estimated total corpus at the end of the investment period.
Formula or Logic
SIP uses the compound interest formula for regular periodic payments:
M = P × {[(1 + r)^n − 1] ÷ r} × (1 + r)
Where: M = Maturity value, P = Monthly investment, r = Monthly rate (annual rate ÷ 12), n = Number of months.
Example Calculations
Example 1: ₹5,000/month for 10 years at 12% annual return → Maturity value ≈ ₹11.6 lakhs. Total invested = ₹6 lakhs. Gains = ₹5.6 lakhs.
Example 2: ₹10,000/month for 20 years at 12% → Maturity value ≈ ₹99.9 lakhs. Total invested = ₹24 lakhs. Gains = ₹75.9 lakhs.
Understanding Your Results
The power of compounding means the longer your investment horizon, the greater the proportion of your corpus that comes from market gains rather than contributions. Starting 5 years earlier can double your final corpus.
Common Mistakes to Avoid
- Assuming a fixed return rate — actual mutual fund returns vary year to year.
- Not accounting for expense ratios, which reduce effective returns by 0.5–2% annually.
- Stopping SIP investments during market downturns — this eliminates the rupee-cost averaging benefit.
- Confusing SIP returns with fixed deposit returns; SIP returns are not guaranteed.