How is SIP return calculated?
For a fixed monthly SIP, each instalment compounds at the monthly rate until the end of the period, then all instalments are added: FV = P x [((1+i)^n - 1)/i] x (1+i). Enter the monthly amount, expected return and years in FixDoks's SIP Calculator to see the future value, gains and a year-by-year table.
SIP Calculator at a glance
| Inputs | Monthly amount or lump sum, expected return, years, optional step-up |
|---|---|
| Output | Future value, amount invested, gains |
| Processing | In your browser; your files are not uploaded |
| Price | Free |
| Works on | Chrome, Edge, Safari and Firefox on Windows, Mac, Android and iPhone |
How to use SIP Calculator
- Choose SIP for a monthly investment or Lump sum for a one-time amount.
- Enter the amount, the expected yearly return and the number of years.
- Optional: add an annual step-up to raise your SIP by a fixed percentage each year.
- Read the estimated value, total invested and gains, plus the year-by-year table.
What does a SIP calculator tell you?
A systematic investment plan (SIP) invests a fixed amount in a mutual fund every month. Because each instalment earns returns for a different length of time, working out the final value by hand is tedious. This calculator does it month by month, so you can see how the amount, the return and, above all, the time you stay invested change the result.
What is the SIP formula?
For a fixed monthly SIP with instalments at the start of each month:
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i)
- P is the monthly SIP amount.
- i is the monthly rate of return, which is the expected yearly return ÷ 12 ÷ 100.
- n is the number of monthly instalments.
Worked example
₹5,000 a month for 10 years at an expected 12% a year:
- i = 12 ÷ 12 ÷ 100 = 0.01, and n = 120
- (1.01)120 = about 3.3004
- FV = 5,000 × (2.3004 ÷ 0.01) × 1.01 = about ₹11,61,695
You invest ₹6,00,000, so the estimated gain is about ₹5.6 lakh. Keep the same SIP for 20 years instead and the estimate rises to roughly ₹49.9 lakh on ₹12 lakh invested. That jump is compounding at work: the later years add far more than the early ones.
Step-up SIP
Most people earn more over time, so raising the SIP every year is a simple way to reach a goal sooner. With a step-up of 10%, a ₹5,000 SIP becomes ₹5,500 in year two, ₹6,050 in year three and so on. The calculator applies the step-up at the start of each new year.
Lump sum
For a one-time investment the tool uses FV = P × (1 + r)t, where r is the yearly return and t is years. It is useful for comparing a bonus invested at once against the same money spread over a SIP.
What return should I assume?
Mutual fund returns are not guaranteed and change every year. Many planners use conservative figures such as 10 to 12% for diversified equity funds over long periods and 6 to 8% for debt funds, but past returns do not predict future ones. Try a few rates to see a range rather than a single number. The estimate ignores expense ratios already reflected in NAV, exit loads and tax on gains.
A SIP can be paused, stopped or increased at any time with most fund houses, and you can hold several SIPs for different goals such as a home deposit, a child's education or retirement.
Results are estimates for planning. Your bank, fund house or the tax department may round differently or apply extra charges, so check the final figure with them.