SIP Calculator
A Systematic Investment Plan (SIP) invests a fixed amount every month. This estimates the maturity value using the standard future-value-of-an-annuity formula, assuming the return rate holds steady every month, which real markets never do exactly.
FV = P × [((1+r)n - 1) / r] × (1+r), where P is the monthly amount, r is the monthly return rate, and n is the number of months.
How to use this calculator
Enter the amount you plan to invest every month, an assumed annual return rate, and how many years you'll keep investing. The calculator applies the formula below and shows the invested amount, estimated returns, and total maturity value.
What this doesn't account for
This assumes the return rate is exactly constant every single month, which no real market does. It doesn't subtract a fund's expense ratio, doesn't model a step-up SIP (increasing the monthly amount over time), and doesn't account for capital gains tax on withdrawal.
Frequently asked questions
What is a SIP?
A Systematic Investment Plan invests a fixed amount at a fixed interval, usually monthly, into a mutual fund scheme, regardless of the unit price on that date.
How is a SIP different from a lumpsum investment?
A SIP spreads purchases across many dates, buying more units when prices are low and fewer when prices are high, rather than committing the full amount at a single price point the way a lumpsum investment does.
Does this calculator account for expense ratio?
No. It computes growth at the return rate you enter. A mutual fund's actual expense ratio reduces its NAV growth, so real returns are typically lower than this estimate unless your assumed rate already reflects post-expense returns.
What return rate should I assume?
This calculator doesn't recommend one. Historical mutual fund returns vary widely by fund, category and period; use a rate you can source, such as a specific fund's own disclosed trailing returns, not a guess.
Does a SIP guarantee returns?
No. Every SIP is subject to market risk. The formula here assumes a constant monthly return, which real markets never deliver exactly.
Can I increase my SIP amount over time?
This calculator assumes a fixed monthly amount for the whole period. A step-up SIP, where the amount rises periodically, compounds faster than this estimate shows.
What happens if I miss a SIP instalment?
This calculator assumes no missed instalments. Missing months reduces the total invested amount and the resulting maturity value proportionally.
Is a SIP only for equity mutual funds?
No. SIPs can run into debt funds, hybrid funds and index funds too. The same formula applies regardless of the underlying asset class; only the realistic return assumption changes.
Does this calculator include tax on withdrawal?
No. Capital gains tax applies when you redeem, not during the investment period. Use BrokerLens's capital gains tax calculator for that separately.
Where does the monthly return rate come from?
This calculator divides your entered annual rate by 12 as a simplification. A real fund's actual compounding behaviour may differ slightly.
Can I use this for a one-time lumpsum investment instead?
No, use the separate lumpsum calculator, which applies compound growth to a single deposit instead of a monthly annuity formula.
Why does the total value grow faster in later years?
Compounding: returns earned in early years themselves start earning returns, so growth accelerates over time even with a constant monthly contribution.
This is a generic financial calculation, not investment, loan or tax advice specific to you. BrokerLens is not a SEBI-registered investment adviser.