SIP Calculator
A Systematic Investment Plan (SIP) turns a small monthly habit into serious wealth. This calculator shows you exactly where that habit leads: enter your monthly amount, pick a realistic return, choose your horizon, and watch compounding do the heavy lifting.
Try this: ₹10,000 a month at 12% for 20 years grows to roughly ₹1 crore — of which you invested only ₹24 lakh. The other ₹76 lakh is pure compounding. Numbers like that are why starting early beats investing more later.
Four steps, thirty seconds.
Enter your monthly SIP amount. Start with what you can sustain every single month — even ₹1,000 counts. Consistency beats size.
Set an expected annual return. 10–12% is a common planning assumption for equity funds over long periods; use 6–8% if you're being conservative.
Choose your time horizon. SIPs need time — 7+ years lets compounding and market cycles do their work.
Read the results and experiment. Nudge the return down by 2% or add 5 years. Notice how time changes the outcome more than the monthly amount does.
The formula: FV = M × [((1+r)n − 1) / r] × (1+r), where M is the monthly investment, r is the monthly return (annual ÷ 12), and n is the number of months.
Worked example: ₹5,000/month for 10 years at 12% p.a. — r = 0.01, n = 120. The formula gives ₹11.62 lakh on ₹6 lakh invested. You can reproduce this on AMFI's official SIP calculator.
Formula source: standard future-value-of-annuity mathematics, as implemented by AMFI's investor-education calculators.
For equity mutual funds, 10–12% annualised is the conventional long-term planning assumption in India; conservative planners use 8–10%. Debt funds sit around 6–8%. Pick a number below your hopes, not above them.
No. Mutual-fund returns vary with markets — the calculator shows what a constant return would produce. Real SIPs zigzag; over 7–10+ years the zigzags have historically smoothed out, but nothing is promised.
Falls are when SIPs buy the most units for your money — pausing defeats the purpose. Only pause if your cash flow genuinely forces it.
Equity-fund gains held over a year: 12.5% LTCG above ₹1.25 lakh per financial year. Shorter holdings: 20% STCG. Debt funds are taxed at your slab rate.
A SIP that rises every year (say 10%) with your salary. Try our Step-Up SIP Calculator — it usually beats a flat SIP by a wide margin.
Disclaimer: Educational illustration only — not financial advice. Mutual fund investments are subject to market risks; read all scheme documents carefully. Returns assumed constant; actual returns will vary.