SIP Calculator: A Systematic Investment Plan (SIP) Calculator helps you estimate the future value of your mutual fund investments based on:
✅ Monthly SIP Amount
✅ Expected Return Rate (%)
✅ Investment Tenure (Years)

SIPs allow you to invest small, regular amounts in mutual funds, benefiting from rupee cost averaging and compounding.

How SIP Returns are Calculated

SIP Formula (Future Value of Annuity):

FV=P×(1+r)n−1r×(1+r)

  • FV = Future Value of Investment

  • P = Monthly SIP Amount

  • r = Monthly Return Rate (Annual Return ÷ 12)

  • n = Total Number of SIPs (Months)

Example Calculation:

  • Monthly SIP (P): ₹10,000

  • Expected Annual Return (r): 12%

  • Tenure (n): 10 years (120 months)

Step 1: Convert annual return to monthly return

r=12%12=0.01 (1% per month)

Step 2: Apply SIP formula

FV=10,000×(1+0.01)120−10.01×(1+0.01)≈∗∗₹23.23Lakhs∗∗

Total Invested: ₹12 Lakhs | Estimated Returns: ₹11.23 Lakhs

Benefits of Using a SIP Calculator

✅ Goal Planning – Calculate SIP needed for targets (e.g., ₹1 Cr corpus)
✅ Compare Scenarios – Adjust amounts/tenure for optimal returns
✅ Visualize Compounding – See how small SIPs grow over time
✅ Tax Efficiency – Track ELSS (80C) or equity fund investments

SIP vs Lumpsum Investment

Factor SIP Lumpsum
Risk Lower (Rupee cost averaging) Higher (Market timing risk)
Flexibility Start with ₹500/month Requires large capital
Best For Salaried individuals Those with surplus funds

Top SIP Performance Examples (Historical Returns)

Fund Type Avg. Returns (5Y) SIP of ₹10K/Month (5Y)
Large Cap Funds 12-14% ₹8-9 Lakhs
Flexi Cap Funds 14-16% ₹9-10 Lakhs
Small Cap Funds 18-20% ₹11-12 Lakhs

Past performance ≠ future returns

FAQs on SIP Calculator

1. What is the minimum SIP amount?

  • ₹500/month (varies by fund).

2. Can I stop SIP anytime?

  • Yes, but long-term (5+ years) gives best compounding.

3. Are SIP returns guaranteed?

  • No, market-linked (unlike FD/RD).

4. How to choose SIP funds?

  • Check 5Y returns, expense ratio, and fund manager history.

5. Is SIP tax-free?

  • Equity SIPs: Tax-free after 1 year (LTCG tax ₹1L+)

  • Debt SIPs: Taxed as per income slab

Try Our Free SIP Calculator

Plan your wealth creation with our SIP Calculator:
📌 Calculate retirement/education corpus
📌 Compare different return scenarios
📌 Optimize tax-saving (ELSS) investments

Calculate Now & Start Investing!

Key Takeaways

  • ₹10K/month at 12% = ₹23L in 10 years

  • Start early for compounding magic

  • Equity SIPs beat inflation long-term