Guide
About the SIP Calculator
What is an SIP?
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. SIPs use the power of rupee-cost averaging — you buy more units when prices fall and fewer when prices rise — and the magic of compounding to build wealth steadily over the long term. Indian investors increasingly prefer SIPs because they are flexible, automated and beat the urge to time the market.
How is SIP future value calculated?
The standard SIP formula is: FV = P × ((1 + i)^n − 1)/i × (1 + i), where P is your monthly investment, i is the monthly return rate (annual return / 12 / 100), and n is the number of months. The (1 + i) factor at the end assumes investments are made at the start of each month. Our SIP calculator India uses this exact formula so your projected corpus matches what mutual fund houses publish.
Example
If you invest ₹10,000 per month in an equity mutual fund for 20 years at an assumed 12% annual return, your total invested amount is ₹24 lakh. The SIP corpus grows to roughly ₹99.9 lakh — that is ₹75.9 lakh of pure compounded gains. Increasing the SIP to ₹15,000/month with the same parameters lifts the corpus past ₹1.5 crore. 2026 is a great year to start: even small monthly amounts compound dramatically over 15–25 years.
How to choose the right SIP amount
Use the 50-30-20 rule: 50% of income for needs, 30% for wants, 20% for savings — and route a meaningful share of that 20% into SIPs. For long-term goals like retirement or your child's education, equity SIPs (12–14% expected) are typically used. For 3–5 year goals, hybrid or short-duration debt funds (7–9%) are safer. Use this calculator alongside our EMI calculator to see how SIPs offset the cost of long-term loans.