How to use the SIP Calculator
- 1
Choose SIP for a monthly investment or Lumpsum for a one-time amount.
- 2
Set the amount, the expected yearly return and the time period in years.
- 3
For a SIP, add an annual step-up if you plan to raise the instalment every year.
- 4
Check the estimated value, the donut split between your money and the gains, and the year-wise growth table.
How the SIP maturity value is calculated
The calculator uses the formula most Indian fund houses use on their own websites: FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i). P is your monthly SIP, i is the expected annual return divided by 12 and then by 100, and n is the number of months. The final (1 + i) is there because a SIP instalment is invested at the start of each month, so every instalment earns one extra month of growth.
Here is the standard example. Put ₹5,000 a month for 10 years at an assumed 12% a year. The monthly rate i is 0.01 and n is 120. (1.01)^120 is about 3.3004, so the bracket works out to 230.04. Multiply by ₹5,000 and by 1.01 and you get about ₹11,61,695.
You would have invested ₹6,00,000 of your own money, and the remaining ₹5,61,695 is estimated growth. In the first year that growth is only about ₹4,047. Most of the gain shows up in the later years, which is the part people tend to underestimate.
Starting early beats investing more later
Compounding needs time more than it needs a large amount. Look at the same ₹5,000 a month at 12% over different periods:
| Period | You invest | Estimated value | Estimated gains |
|---|---|---|---|
| 10 years | ₹6,00,000 | ₹11,61,695 | ₹5,61,695 |
| 20 years | ₹12,00,000 | ₹49,95,740 | ₹37,95,740 |
| 30 years | ₹18,00,000 | ₹1,76,49,569 | ₹1,58,49,569 |
Doubling the period from 10 to 20 years makes the final value more than four times bigger. Put another way, someone who starts ₹5,000 a month at 25 and continues until 60 could end up with about ₹3.25 crore at 12%. A person who starts at 35 with double the amount, ₹10,000 a month, reaches only about ₹1.90 crore by 60 despite investing ₹30 lakh, compared with ₹21 lakh for the early starter.
Why a step-up SIP is worth considering
A flat SIP stays the same for years while your salary usually does not. A step-up SIP raises the instalment by a fixed percentage once a year. Set the step-up slider to 10% and the calculator raises your SIP every 12 months and computes the value month by month.
With ₹5,000 a month, a 10% yearly step-up, 12% return and 10 years, you invest about ₹9.56 lakh in total and the estimated value is about ₹16.87 lakh, against ₹11.62 lakh for a flat SIP. In the tenth year your SIP would be ₹11,790 a month. Many fund houses let you set this up as a top-up facility when you register the SIP, so you do not have to remember to increase it.
SIP or lumpsum: reading the comparison honestly
Switch to the Lumpsum tab and enter ₹6 lakh for 10 years at 12%. It grows to about ₹18.64 lakh, much more than the ₹11.62 lakh from a SIP that also adds up to ₹6 lakh. That does not mean lumpsum is the better choice. With a lumpsum, the whole amount is invested from day one, while SIP money goes in gradually over 10 years, so of course it has less time to grow.
The real question is what you have. If you earn monthly and invest from salary, a SIP is the practical option, and buying every month averages out your purchase price when markets swing. If you already hold a large sum, a lumpsum puts it to work at once, but you take the risk of investing just before a fall. Some investors park the sum in a liquid fund and move it into equity through a systematic transfer plan over 6 to 12 months as a middle path.
Choosing an expected return without fooling yourself
The return you enter makes a large difference. The same ₹5,000 monthly SIP for 10 years comes to about ₹9.21 lakh at 8%, ₹11.62 lakh at 12% and ₹13.93 lakh at 15%. Equity funds have delivered double-digit returns over some long periods in India, but there have also been years with losses, and past performance is not a promise. A cautious approach is to plan with a lower figure and treat anything above it as a bonus. Debt and hybrid funds usually call for a lower assumption than equity funds.
Also think in today's rupees. If inflation averages 6%, ₹11.62 lakh in 10 years buys roughly what ₹6.5 lakh buys today. That is still a solid gain over ₹6 lakh invested, just less dramatic than the headline number.
Limits of this estimate
Every figure here assumes the same return every single year, which never happens in real markets. Mutual fund investments are subject to market risk, and returns are not guaranteed. The calculator also ignores the fund's expense ratio (already reflected in a fund's NAV), exit loads, and tax on your gains when you redeem. Use it to set goals and compare scenarios, not as a forecast, and speak to a SEBI-registered adviser if you are unsure which fund suits you.
Frequently asked questions
How much will ₹5,000 per month SIP give in 10 years?
At an assumed 12% a year, a ₹5,000 monthly SIP for 10 years could grow to about ₹11.62 lakh, of which ₹6 lakh is your own money. At 10% it would be closer to ₹10.3 lakh. The actual value depends on how the fund performs.
Which formula does this SIP calculator use?
It uses FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), with i as the monthly rate and n as the number of months, which is the method most AMC calculators use. With step-up switched on, it calculates month by month instead.
Are SIP returns guaranteed?
No. A SIP is just a way of investing regularly in a mutual fund, and the fund's value moves with the market. The returns shown here are estimates based on the rate you enter.
What return should I assume for an equity SIP?
Many people use 10% to 12% for long-term equity planning, but nothing makes that certain. Try a lower rate too, such as 8%, to see whether your goal still works if markets disappoint.
Can I stop or pause a SIP?
Yes. Most open-ended mutual funds let you pause or cancel a SIP without a penalty, and the money already invested stays in the fund. Exit loads may apply if you redeem units within a short period, so check the scheme details.
How is lumpsum return calculated here?
Lumpsum uses compound growth once a year: value = amount × (1 + rate ÷ 100)^years. ₹1 lakh at 12% for 10 years becomes about ₹3.11 lakh.
Last updated on November 9, 2026