SIP Calculator

Estimate Your SIP Returns

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Monthly Investment

Investment Duration (Years)

Expected Annual Return (%)

Annual Inflation Rate (%)

Show inflation-adjusted real value

What Is a SIP?

A Systematic Investment Plan (SIP) is a way to invest a fixed amount regularly, usually monthly, into a mutual fund. Because you invest on a schedule instead of all at once, you buy fewer units when prices are high and more when prices are low, which smooths your average purchase cost over time. SIPs are one of the most popular ways to build long-term wealth because they are simple, disciplined, and work well with regular income.

How the SIP Calculator Works

An SIP calculator uses a standard annuity-due formula to project how a fixed monthly investment grows over time. Every month you invest the same amount, and each installment earns returns from the moment it is invested, so later installments have less time to compound than earlier ones. The calculator compounds your returns monthly at a rate derived from your expected annual return, then sums the future value of all installments to give your maturity value, total invested, and total wealth gained. This is the same math used by mutual fund houses, banks, and every reputable SIP return calculator.

The Formula

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

Where P is the monthly investment, i is the monthly return rate (derived from your annual return by compounding, not simple division), and n is the number of monthly installments. The leading (1 + i) factor reflects that installments are invested at the start of each month. In Goal-Based mode the calculator solves this same equation backwards for P, telling you the monthly SIP required to reach a target corpus. Step-Up mode applies a growing-annuity calculation where the monthly amount rises each year, and Lumpsum mode adds the compounded value of a one-time investment.

Why AI Cannot Replace This Tool

Large language models routinely make mistakes on SIP calculations. Compound exponentials over long time horizons are hard for them to evaluate reliably, and they frequently divide the annual return by 12 instead of converting it with the correct compound rate, mix up annuity-due and ordinary annuity timing, or return different numbers for the same inputs across conversations. This tool applies deterministic JavaScript math with no approximation and no variation: the same inputs always produce the same bit-exact result. It also runs entirely in your browser, so your financial details never leave your device.

Frequently Asked Questions

What is a SIP?

How accurate is this SIP calculator?

It uses the standard future value of annuity-due formula that fund houses and banks use, compounding monthly returns from your expected annual rate. The result is an estimate based on the inputs you provide; actual returns depend on market performance and will differ from any projection.

What rate of return should I use?

A common assumption is 10% to 12% per year for long-term equity funds, and 6% to 8% for hybrid or debt funds. The calculator only reflects the rate you enter, so you can test different assumptions and compare the outcomes.

Why does the calculator convert my annual return to a monthly rate?

Because you invest every month, each installment must earn a monthly return. The correct monthly rate is not simply the annual rate divided by 12. It is derived so that compounding twelve months of that rate equals your annual return. Using the naive division overstates your results.

Does the calculator factor in inflation?

Only if you switch on the inflation toggle. When enabled, it shows the maturity value expressed in today's purchasing power, discounted by the inflation rate you set. This gives a more honest picture of what your corpus will actually be worth when you reach your goal.

Can I use this for goal planning?

Yes. Switch to Goal-Based mode, enter the amount you want to accumulate and the time horizon, and the calculator works backwards to tell you the monthly SIP required to reach that target at your assumed return.

What is a step-up SIP?

A step-up SIP increases your monthly investment by a fixed percentage every year, typically aligned with salary growth. Because your contributions grow along with your income, a step-up SIP builds a larger corpus than a flat SIP over the same period.

What is the difference between SIP and a lumpsum investment?

A lumpsum is a one-time investment of a large amount. A SIP spreads small, regular investments over time. The SIP + Lumpsum mode lets you model both together, which is how many investors build portfolios in practice.

Is my financial data private?

Yes. All calculations happen locally in your browser. Nothing is uploaded, stored, or transmitted, so you can check your own figures without sharing them with anyone.

Disclaimer

This calculator provides estimates for educational and planning purposes only and is not financial advice. Mutual fund investments are subject to market risks; returns are not guaranteed and may vary. Please consult a qualified financial advisor before making investment decisions.