SIP Calculator — Systematic Investment Plan Returns

A Systematic Investment Plan (SIP) is the disciplined practice of investing a fixed amount every month into a mutual fund or index fund. Use the calculator below to project how much wealth your SIP could generate over time — adjust the monthly amount, expected return, and duration with the sliders.

SIP Calculator

Estimate the maturity value of your monthly Systematic Investment Plan in seconds.

$
Return rate12.00%
Duration10

Your SIP at maturity

Maturity Value–
Total Invested–
Wealth Gained–
InvestedReturns

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What is a SIP and Why Does It Work?

SIPs work because of two compounding forces: rupee/dollar-cost averaging (you buy more units when markets dip and fewer when they rally) and compounding (your returns earn returns of their own). Over 10–20 year horizons, these effects often dwarf the impact of market timing — which is precisely why SIPs are the default wealth-building tool for working professionals.

The calculator above uses the standard SIP future-value formula, the same one used by AMCs, Vanguard, Fidelity, and brokerage platforms worldwide.

The SIP Formula

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

Where P is your monthly investment, r is the monthly rate of return (annual rate ÷ 12), and n is the number of monthly instalments (years × 12). The formula assumes contributions at the start of each month.

Worked Example

Example: If you invest $500/month for 20 years at an expected annual return of 12%, your total invested is $120,000 — but the maturity value compounds to approximately $499,574. That is roughly $379,574 in pure compounding gains, more than 3× what you actually put in.

How to Use This Calculator

  1. Enter the amount you can comfortably invest each month.
  2. Slide the expected annual return — historically, broad equity indices have returned 10–13% over long horizons.
  3. Choose your investment duration (longer is dramatically better — see the chart).
  4. The maturity value, total invested, and wealth gained update instantly.

Common Mistakes Investors Make

  • Stopping during market crashes. The whole point of SIPs is to buy cheap units in downturns.
  • Choosing too low an expected return. Inflation alone is 4–6% — you need your money to grow faster than that.
  • Not stepping up the SIP. Increasing your SIP by 10% every year (a step-up SIP) can double your final corpus.
  • Mixing goals. Different goals (retirement, child’s education, house) need separate SIPs with different durations.

Frequently Asked Questions

Is the SIP calculator’s result guaranteed?▾
No — it’s a projection. The calculator assumes a constant annual return, but real markets fluctuate. Use it to set realistic expectations and to compare scenarios, not as a guarantee.
What return rate should I assume?▾
For broad equity index SIPs over 15+ years, 10–13% (after expense ratios) is reasonable. For balanced/hybrid funds, 8–10%. For debt funds, 6–7%. Always be conservative with your assumptions.
Should I do SIP in lumpsum funds I already have?▾
If you have a lumpsum, a hybrid approach often works best: invest a portion lumpsum and SIP the rest over 12–24 months. Use our Lumpsum Calculator and SIP Calculator together to compare.
Is SIP better than lumpsum?▾
Mathematically, in a steadily rising market, lumpsum wins. In volatile or sideways markets, SIPs win because of cost-averaging. For most working professionals with monthly cash flow, SIP is the practical choice.
Can I increase my SIP later?▾
Yes — and you should. Most platforms allow ‘step-up SIPs’ that automatically increase your contribution by a set percentage each year. Even a 10% annual step-up dramatically increases your final corpus.

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