SIP Calculator
Calculate the future value of monthly SIP investments.
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The SIP Calculator projects what a fixed monthly investment could grow to if it earns a steady annual return for a set number of years. It shows the future value, the total you put in and the difference between the two. People use it to size a monthly mutual fund SIP for goals such as a child's education, a house down payment or retirement, and to see how strongly the number of years drives the outcome.
Inputs, and the formula behind them
Enter the Monthly investment in rupees, the Expected return (% p.a.) and the number of Years, then press Calculate. The calculator divides the annual rate by 12 to get a monthly rate, multiplies the years by 12 and rounds to whole months to get the number of instalments (1.3 years becomes 16), and applies the future value formula for payments made at the start of each month:
FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i)
Here P is the monthly amount, i the monthly rate and n the number of months. The final × (1 + i) assumes each instalment is invested at the beginning of its month, so it earns one more month of growth than an end-of-month payment would.
Worked example
₹5,000 a month at 12% for 10 years:
- i = 12 ÷ 12 ÷ 100 = 0.01, and n = 10 × 12 = 120.
- (1.01)^120 = 3.3004, so ((1.01)^120 − 1) ÷ 0.01 = 230.04.
- 230.04 × 1.01 × 5,000 = ₹11,61,695.38 future value.
- Total invested: 5,000 × 120 = ₹6,00,000. Wealth gained: ₹5,61,695.38.
Monthly rate versus annual return
Dividing 12% by 12 gives 1% a month, and 1% compounded for 12 months is 12.68% a year, not 12%. So if you expect a fund to grow at 12% a year (its CAGR), the matching monthly rate is (1.12)^(1/12) − 1 = 0.9489%, which corresponds to entering about 11.39% here. With that input, ₹5,000 a month for 10 years comes to ₹11,20,407.79, about ₹41,288 less than the 12% result. Over 20 years the gap widens to ₹3,94,326 (₹49,95,739.60 against ₹46,01,413.23). Neither figure is wrong, as they answer slightly different questions, but the lower one is the more cautious plan.
Years matter more than the amount
| Years (₹5,000 a month, 12%) | Invested | Future value |
|---|---|---|
| 10 | ₹6,00,000 | ₹11,61,695.38 |
| 15 | ₹9,00,000 | ₹25,22,880.00 |
| 20 | ₹12,00,000 | ₹49,95,739.60 |
| 25 | ₹15,00,000 | ₹94,88,175.46 |
Between year 15 and year 20 the corpus grows by ₹24.73 lakh, almost as much as everything built in the first 15 years, although only ₹3 lakh of new money goes in. Doubling the SIP to ₹10,000 for 10 years gives ₹23,23,390.76, less than half of what ₹5,000 achieves over 20 years. Starting a few years earlier usually beats investing more later.
Picking a return rate, and what inflation does
The calculator holds the rate constant, while real funds rise and fall from year to year. Rather than trusting one number, run the same SIP at a cautious, a middle and a hopeful rate. ₹5,000 a month for 20 years gives ₹29,64,736.09 at 8%, ₹38,28,484.55 at 10% and ₹49,95,739.60 at 12%. Plan around the lower figures and treat the top one as a bonus. Debt and hybrid funds generally call for lower assumptions than equity funds.
The future value is also counted in future rupees. At 6% average inflation over 20 years, ₹49.96 lakh would buy roughly what ₹15.6 lakh buys at today's prices (49,95,739.60 ÷ 1.06^20). The inflation calculator helps you convert a goal into future rupees before you choose the SIP amount.
Tax when you redeem
Every SIP instalment buys units on its own date, and each lot has its own holding period; units are treated as sold in the order they were bought. For equity-oriented mutual funds, under the Income-tax Act, 2025:
- Units held for 12 months or less: short-term capital gains taxed at 20% (section 196, which replaced section 111A).
- Units held for more than 12 months: long-term capital gains taxed at 12.5% on gains above ₹1,25,000 in a year (section 198, which replaced section 112A).
- Health and education cess of 4% is added to the tax.
So if you redeem the whole corpus the day a 10-year SIP ends, the gains on the last 12 instalments are still short-term. Spreading redemptions across tax years lets you use the ₹1.25 lakh exemption more than once. Debt and other non-equity funds follow different rules, so check the scheme's tax category. The calculator shows pre-tax values only.
What the projection leaves out
The result is a projection for planning, not investment advice, and mutual fund investments are subject to market risks. It assumes no missed instalments, no yearly step-up, the same return every month and no exit load. A fund's expense ratio is already reflected in its NAV, so use a return assumption that is net of costs. To project a one-time investment instead of a monthly one, use the lumpsum calculator.