How is SIP calculated?

SIP returns are calculated using the compound interest formula for regular investments: M = P × ( (1 + i)^n - 1 ) / i × (1 + i), where P is the monthly investment amount, i is the monthly interest rate, and n is the total number of months.

Are SIP returns guaranteed?

No, SIP returns in Mutual Funds are subject to market risks and are not guaranteed. The calculator provides an estimate based on the expected annual return rate you enter.

What is the power of compounding in SIP?

The power of compounding means you earn interest not only on your principal investment but also on the accumulated interest from previous periods. Over long periods, this creates a snowball effect on your wealth.

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SIP Calculator

SIP Return Calculator

Estimate the future value of your Mutual Fund Systematic Investment Plan (SIP) and visualize your wealth creation journey.

Monthly Investment Amount (₹)

Expected Annual Return Rate (%)

Historical equity mutual fund returns average around 10-15%.

Time Period (Years)

Maturity Summary

Total Invested Amount ₹0.00

Estimated Returns ₹0.00

Total Wealth Generated ₹0.00

Year-by-Year Wealth Accumulation

End of Year	Amount Invested	Estimated Returns	Total Wealth

About Our SIP Calculator

Systematic Investment Plan (SIP) is an investment route offered by Mutual Funds wherein one can invest a fixed amount at regular intervals. Our free SIP calculator helps you estimate the wealth you can accumulate over a given time frame using the power of compounding. Since it runs completely on your browser, it is fast and secure.

The Magic of Compounding

Albert Einstein famously called compound interest the "eighth wonder of the world". In an SIP, the returns you earn on your initial investment begin to earn returns themselves in the following periods. Over 10, 15, or 20 years, this causes a snowball effect, accelerating your wealth creation exponentially. Our Year-by-Year table visually demonstrates this explosion of growth in the later years of your investment.

SIP Calculation Formula

The mathematical formula used by mutual funds to calculate the future value of an SIP is:


                M = P × [((1 + i)ⁿ - 1) / i] × (1 + i)

M = Maturity amount (Future Value)
P = Monthly SIP amount
i = Monthly interest rate (Expected Annual Return / 12 / 100)
n = Number of months (Years × 12)

Frequently Asked Questions

No, Mutual Fund SIPs invest in market-linked instruments (like stocks and bonds). Therefore, the returns are not guaranteed. The calculator uses a projected annual rate to give you an estimated future value.

SIP is highly recommended for regular salaried individuals because it inculcates financial discipline and provides the benefit of "Rupee Cost Averaging". This means you buy more units when the market is low, balancing your overall purchase cost.

Yes, most Mutual Fund platforms allow a "Step-Up SIP" where you can increase your monthly investment amount every year in line with your salary increments.