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Smart Finance Suite

SIP Calculator — Mutual Fund Investment Returns & Wealth Gain

Enter your monthly SIP amount, expected annual return, and tenure to project the maturity corpus using the standard SIP future-value formula.

Quick Formula: A Systematic Investment Plan (SIP) compounds monthly using the formula: FV = P × [((1 + r)^n - 1) / r] × (1 + r), where P is monthly deposit, r is monthly rate (annual % ÷ 12), and n is total months. For example, investing ₹5,000/month for 10 years at 12% returns yields ₹11,61,695 on an investment of ₹6,00,000 (a wealth gain of ₹5,61,695).

1. Investment Variables

The Power of Compound Interest

Mutual Fund SIPs compound returns monthly. Investing a small amount regularly allows your accrued gains to purchase more units, which then compound further over long time periods.

Common Questions & Calculator Insights

How does a Systematic Investment Plan (SIP) work?

A SIP allows you to invest a fixed sum of money regularly (usually monthly) in a mutual fund scheme. Instead of trying to time the market, you buy fund units at different prices. Over time, this averages out the cost of acquisition (rupee cost averaging) and maximizes compound interest returns.

What is the difference between a SIP and a lumpsum investment?

A SIP is a recurring monthly investment that is ideal for salaried individuals to build wealth gradually. A lumpsum investment is a one-time deposit of a larger sum of money. SIPs mitigate short-term market volatility through rupee cost averaging, whereas lumpsum investments are highly dependent on entry timing.

Can I change my SIP amount after starting it?

Yes, most mutual fund platforms and AMCs allow you to modify your SIP monthly contribution amount, pause your SIP, or stop it entirely without any penalties. You can also opt for a Step-Up SIP to automatically increase the deposit amount annually.

Are mutual fund SIP returns guaranteed in India?

No, mutual fund investments are subject to market risks, and returns are not guaranteed. Historically, equity mutual fund SIPs held for over 5–10 years in India have yielded average returns between 12% and 15% per annum.

Where can I verify the source data for this calculator?

You can verify the values against the official notifications listed in our data sources section at the bottom of the page.

Rates sourced from official government portals — see data sources & verification dates

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth Last verified: 2026-06-30

💡 What Does This Calculator Do?

This tool shows how your money grows when you invest a fixed amount every month in a mutual fund. It calculates the total future value of your monthly investments including the power of compounding returns. You will know exactly how much wealth your disciplined monthly savings can build over any time period.

📋 How to Use It

  1. 1
    Monthly SIP Amount: Type the fixed amount you want to invest every month in your mutual fund.
  2. 2
    Expected Annual Return: Type the yearly growth percentage you expect. Equity mutual funds in India typically return 10%–14% over long periods.
  3. 3
    Time Period: Type the number of years you plan to keep investing regularly.

🧬 The Logic Explained Simply

  • The Concept: Every month you invest a small amount, and that amount earns returns. Next month, you invest again, and now both amounts earn returns. This keeps repeating — each instalment compounds for a different duration. The first payment compounds for the entire period, the last for just one month. Together they create a snowball of wealth.
  • The Formula:

FV = P × [((1 + r)^n - 1) / r] × (1 + r)

Where P is monthly investment, r is monthly rate (annual rate ÷ 12), and n is total months.

💡 Real-World Calculation Breakdown

For example, if you invest ₹10,000 every month for 15 years at an expected annual return of 12%. Your total investment is ₹18,00,000 (₹10,000 × 180 months). The compounding engine turns this into a future value of ₹50,45,760. You gain ₹32,45,760 purely from compounding returns — almost double what you actually put in.

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