How to use the SIP Calculator
- Enter the amount you will invest every month.
- Enter the expected annual return and the number of years.
- Optionally add a yearly step-up, then press Calculate SIP.
SIP Calculator formula
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i)
P = monthly SIP, i = annual return ÷ 12 ÷ 100, n = number of months. The extra (1 + i) is because SIP instalments are invested at the start of each month.
Worked example
₹5,000 every month for 10 years at 12% expected return: i = 0.01, n = 120.
FV = 5,000 × [(1.01120 − 1) ÷ 0.01] × 1.01 ≈ ₹11,61,695. You invest ₹6,00,000, so estimated gains are about ₹5,61,695.
Things to keep in mind
- Mutual fund returns change every year. The calculator assumes one steady rate, so treat the result as an estimate.
- Starting early matters more than the amount — compounding has more years to work.
- A step-up SIP (raising the SIP with your salary) can grow the final corpus a lot.
Frequently asked questions
What is a SIP calculator?
It is a tool that estimates the future value of regular monthly investments in a mutual fund, based on an expected rate of return and time period.
How is SIP return calculated?
The calculator uses the future value of an annuity-due formula: FV = P × [((1+i)^n − 1)/i] × (1+i), where i is the monthly return and n is the number of months.
Is the SIP return guaranteed?
No. Mutual fund returns depend on market performance. The calculator shows an estimate based on the return you enter.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly investment by a fixed percentage every year, usually in line with salary growth.
What is the minimum SIP amount?
Many mutual funds allow SIPs from ₹100 to ₹500 per month. Check the fund's scheme document.
Are SIP returns taxable?
Yes. Gains on equity funds and debt funds are taxed as capital gains when you redeem. Tax rules can change, so check the current rules before redeeming.