How to use the SIP Calculator
- Choose Monthly SIP or Lump sum.
- Enter the monthly amount (or the one-time amount), the expected yearly return and the number of years.
- For a SIP, optionally add an annual step-up to raise the installment every 12 months.
- See the amount invested, estimated returns and maturity value, and download the yearly table as CSV.
Features
- Monthly SIP and one-time lump-sum modes
- Optional annual step-up (top-up) percentage
- Amount invested, estimated returns and value multiple
- Donut and yearly stacked growth chart
- Year-by-year table with CSV export
What is a SIP?
A systematic investment plan (SIP) invests a fixed amount in a mutual fund at regular intervals, usually every month. Because the same amount buys more units when prices are low and fewer when prices are high, your average cost per unit evens out over time, an effect known as rupee-cost or dollar-cost averaging. A SIP also builds a habit: the money is invested automatically before you have a chance to spend it.
How the SIP value is calculated
The calculator uses the formula found in most SIP calculators, with each installment invested at the start of the month:
FV = P × ((1 + i)n − 1) ÷ i × (1 + i)
Here P is the monthly installment, i the expected yearly return ÷ 12 ÷ 100 and n the number of months. For a lump sum the growth is yearly: FV = P × (1 + r)t.
Example
Investing 5,000 a month for 10 years at an expected 12% a year gives i = 0.01 and n = 120. The maturity value is about 1,161,695, of which 600,000 is your own money and about 561,695 is estimated returns. Keep going for 20 years and the estimate grows to about 4,995,740 on 1,200,000 invested, because the second decade compounds a much larger balance.
Step-up SIPs
A step-up (or top-up) SIP raises the installment by a fixed percentage each year, often in line with pay rises. Starting at 5,000 a month and stepping up by 10% a year for 10 years, you invest about 956,245 and the estimate reaches about 1,687,163 at 12%. That is over 525,000 more than the flat SIP for an extra 356,245 of contributions.
SIP or lump sum?
| Approach | Suits | Main risk |
|---|---|---|
| Monthly SIP | Regular income and building wealth gradually | Lower growth if you pause or stop the installments |
| Lump sum | A bonus, inheritance or maturing deposit | Investing everything just before a market fall |
Because markets have tended to rise over long periods, investing a lump sum at once has often done better than spreading it out, but a SIP reduces the risk and regret of bad timing. Many investors combine the two by moving a lump sum into equity gradually over several months.
Things to keep in mind
- Returns are not guaranteed. Equity funds can fall in some years. Use a cautious rate and try a few to see a range.
- Costs and taxes reduce returns. Exit loads and capital-gains tax are not included here.
- Inflation matters. Check what the maturity value is worth in today’s money with the Inflation Calculator.
- Start from the goal. For retirement targets, try the Retirement Calculator.
Mutual fund investments are subject to market risk. These results are estimates for information only and are not financial advice.
Frequently asked questions
How is the SIP return calculated?
This calculator uses FV = P × ((1 + i)^n − 1) ÷ i × (1 + i), with P the monthly amount, i the yearly return ÷ 12 and n the number of months, assuming each installment is invested at the start of the month.
What return should I assume?
There is no fixed answer: it depends on the type of fund and on markets. Use a conservative figure, and try a lower and a higher rate to see a range of outcomes instead of relying on one number.
What is a step-up SIP?
A step-up SIP increases the monthly installment by a set percentage every year, for example 10%. It lets your investing grow with your income and can raise the final value considerably.
Is the maturity amount guaranteed?
No. Mutual fund returns vary with markets. The figure here assumes a constant yearly return, which real investments never deliver exactly.
Does this include tax or fund charges?
No. Fund expenses, exit loads and capital-gains tax are not modeled, so use a return figure that is already net of costs or subtract them yourself.