How to use the SIP Calculator
- 1
Enter the amount you plan to invest every month.
- 2
Set an assumed yearly return. Try a lower rate as well to see a cautious case.
- 3
Choose how many years you plan to stay invested.
- 4
Read the invested amount, estimated returns and total value, and check the yearly chart.
The formula
FV = P × [((1 + r)^n − 1) ÷ r] × (1 + r)P is the monthly SIP, r is the monthly rate (annual return ÷ 12 ÷ 100) and n is the number of months. The final (1 + r) is there because each instalment is assumed to be paid at the start of the month.
Worked example
Say you invest ₹5,000 at the start of every month for 10 years and assume 12% a year. You put in ₹6 lakh in total, and the illustrated value comes to about ₹11.62 lakh, of which roughly ₹5.62 lakh is estimated growth.
Tips
- Pick a SIP date a few days after your salary is credited so the debit never bounces.
- Raise your SIP when your income rises, even by a small amount each year.
- Run the numbers at a lower assumed return too, because actual returns vary from year to year.
Frequently asked questions
How much SIP do I need for ₹1 crore?
At an assumed 12% a year, a SIP of about ₹19,800 a month for 15 years, or about ₹10,000 a month for 20 years, may reach ₹1 crore. These are illustrations only. Actual returns vary, so a longer time frame gives you more room.
Are the results of the SIP calculator guaranteed?
No, the results are an illustration based on the rate you enter. Mutual fund returns are market-linked and change every year. The calculator assumes a steady rate, which real markets never deliver, so use it to plan amounts, not to predict a figure.
What return should I assume in a SIP calculator?
Use a conservative rate that matches the fund category you are considering. Equity funds have historically been more volatile than debt funds, so many investors test a range, for example a cautious, a middle and a hopeful rate, and plan around the cautious one.
Why does the SIP calculator show more growth in later years?
Growth builds on earlier growth, so the gap between invested amount and value widens with time. In the early years most of the value is your own money. Staying invested longer gives compounding more months to work, which is why starting early matters more than starting big.