About the SIP Calculator
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. This calculator projects the future value of your SIP based on your monthly contribution, expected annual return and investment period.
How it works
- It uses the standard SIP future value formula: FV = P × [((1 + i)^n − 1) / i] × (1 + i), where P is your monthly investment, i is the monthly rate of return, and n is the total number of months.
- The extra (1 + i) factor accounts for each instalment earning a full month of return, consistent with SIPs invested at the start of each month.
Assumptions and behaviour
- Assumes the same SIP amount every month for the full period, with no step-up.
- Assumes a constant annual rate of return — real mutual fund returns fluctuate year to year and are never guaranteed.
- Equity mutual funds have historically delivered long-term returns in the region of 12% annually, but this varies significantly by fund, category and market cycle.
Limitations
- Doesn't model a step-up SIP (increasing your monthly amount each year) — for that, use a dedicated step-up SIP calculator.
- Doesn't account for expense ratios, exit loads, or capital gains tax on withdrawal.
- Past or assumed returns don't guarantee future performance — mutual fund investments are subject to market risk.
Privacy
The calculation runs entirely in your browser. Nothing is uploaded or stored.
Get FreeMyTask as an app