Ten-year SIP
- Input
- ₹5,000/month at 12% for 10 years
- Output
- ₹11,61,695 · invested ₹6,00,000
Growth of ₹5,61,695 — almost as much as was invested. The final two years alone add more than the first five.
SIP Calculator
A SIP calculator projects what a monthly mutual fund instalment grows to over time. The detail that separates a correct calculator from an approximate one is the timing convention: a SIP debits at the start of the month, so each instalment earns that month's growth. Treating it as an end-of-month payment understates the result by about 1%, which over long horizons is a substantial sum.
Runs entirely in your browser — your figures are never uploaded.
How is SIP return calculated?
SIP maturity is calculated as M = P × ((1+i)^n − 1) ÷ i × (1+i), where P is the monthly instalment, i the monthly return and n the number of instalments. ₹5,000 a month for 10 years at 12% grows to ₹11,61,695 against ₹6,00,000 invested.
This is a projection tool, not investment advice. Mutual fund investments are subject to market risk; returns are not guaranteed and can be negative.
₹
%
years
%
Raise the contribution each year as income grows
%
Maturity value
₹11,61,695
after 10 years
- Total invested
- ₹6,00,000
- Growth
- ₹5,61,695
- Worth in today's money
- ₹6,48,685
after 6% inflation
- Invested — 52%
- Growth — 48%
The maths
SIP Calculator formula
Formula
M = P × ((1 + i)^n − 1) / i × (1 + i)
- M
- Maturity amount
- P
- Monthly instalment
- i
- Monthly rate — annual return ÷ 12 ÷ 100
- n
- Number of instalments
Worked example
₹5,000 a month for 10 years at an assumed 12% a year
Inputs
- Instalment (P)
- ₹5,000
- Annual return
- 12%
- Monthly rate (i)
- 0.12 ÷ 12 = 0.01
- Instalments (n)
- 120
Working
- (1 + 0.01)^120 = 3.30039
- (3.30039 − 1) ÷ 0.01 = 230.039
- 230.039 × 5,000 = ₹11,50,193
- × (1 + 0.01) for start-of-month investing = ₹11,61,695
₹11,61,695 against ₹6,00,000 invested — a gain of ₹5,61,695.
How to
How to use the SIP Calculator
- 1
Enter your monthly instalment
Put in the amount debited each month. Most funds accept from ₹500, and the projection scales linearly with this figure.
- 2
Set an expected return
Enter the annual return you want to assume. Equity funds are commonly modelled at 10–12%, but this is an assumption, not a promise.
- 3
Choose the period
Set how many years you will invest. SIP outcomes are dominated by time — the last few years contribute far more than the first.
- 4
Compare against inflation
Check the inflation-adjusted figure to see what the maturity amount is worth in today's money before treating it as a goal.
Examples
SIP Calculator examples
Twenty-year SIP
- Input
- ₹5,000/month at 12% for 20 years
- Output
- ₹49,95,740 · invested ₹12,00,000
Doubling the period more than quadruples the outcome. This is the compounding effect that makes starting early matter more than investing more.
Step-up SIP
- Input
- ₹5,000/month, +10% a year, 12% for 10 years
- Output
- ₹17,68,000 approximately
Raising the instalment 10% each year as income grows lifts the result by more than half, without a painful jump at any single point.
Why use it
What the SIP Calculator gives you
The right timing convention
Uses annuity-due, matching a start-of-month debit. Ordinary-annuity calculators understate a ten-year SIP by roughly ₹11,500 on a ₹5,000 instalment.
Step-up modelling
Shows what raising the instalment annually achieves, which is usually more effective than trying to time the market.
Real purchasing power
The inflation-adjusted figure prevents a large nominal number from creating a false sense of sufficiency.
Nothing leaves the browser
Your investment amounts are never transmitted or logged.
Good to know
SIP Calculator limitations
- Assumes a constant return every month. Real markets are volatile, and the order of good and bad years changes the outcome even at the same average.
- Ignores exit load, expense ratio and taxes, all of which reduce the realised amount.
- Past performance does not indicate future returns; the rate entered is an assumption, not a forecast.
- Assumes every instalment is paid on time. A missed debit changes both the amount invested and the units bought.
Summary
SIP Calculator in short
- M = P × ((1+i)^n − 1) / i × (1+i) for a start-of-month SIP.
- ₹5,000 a month at 12% for 10 years reaches ₹11,61,695.
- Doubling the period roughly quadruples the outcome.
- A 10% annual step-up lifts a ten-year result by more than half.
- Returns are assumptions; markets do not deliver a constant rate.
FAQ
SIP Calculator questions
What is the SIP maturity formula?
M = P × ((1 + i)^n − 1) / i × (1 + i), where P is the monthly instalment, i the monthly rate and n the instalment count. The final (1 + i) reflects that a SIP debits at the start of the month.
Why does my bank's SIP figure differ slightly?
Usually the timing convention. Treating instalments as end-of-month payments understates the result by one month of growth — about ₹11,500 on a ten-year ₹5,000 SIP at 12%. Fund houses use the start-of-month convention.
What return should I assume?
There is no correct figure. Indian equity funds are commonly modelled at 10–12% over long periods and debt funds at 6–7%, but these are historical averages over decades and any individual period can differ sharply.
What is a step-up SIP?
An arrangement where the instalment rises by a set percentage each year, usually tracking income growth. Raising ₹5,000 by 10% annually over ten years produces roughly half as much again as a flat instalment.
Is a SIP better than investing a lump sum?
They answer different questions. A lump sum invested at the start of a rising period wins arithmetically; a SIP spreads entry price and removes the need to time the market. A SIP suits money that arrives monthly.
How long should I run a SIP?
Long enough for compounding to dominate contributions, which typically takes seven to ten years in equity. Short horizons expose the investment to market cycles without time to recover from a poor stretch.
How are SIP gains taxed in India?
Each instalment is treated as a separate purchase with its own holding period. Equity gains held over a year fall under long-term capital gains rules; shorter holdings are taxed at the short-term rate. Confirm current rates with a tax adviser.
What happens if I stop a SIP midway?
The units already bought stay invested and continue to grow, but no further instalments are added. Stopping during a downturn locks in the lower average and forfeits the units the remaining instalments would have bought cheaply.
Is my investment amount recorded?
No. The projection runs in your browser as arithmetic. Nothing about your instalment, horizon or assumed return is transmitted or stored anywhere.
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