How to use the SIP Calculator
- Enter the amount you will invest every month.
- Enter the expected annual return and the investment period.
- Optionally add a yearly step-up to increase your SIP every year.
- See the total invested, estimated gains and final value.
What is a SIP?
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund at regular intervals, usually monthly. Investing regularly averages out your purchase price over time (rupee-cost averaging) and builds a disciplined savings habit.
SIP formula
FV = P × ((1 + i)n − 1) ÷ i × (1 + i)
- P – monthly investment
- i – monthly rate of return (annual rate ÷ 12 ÷ 100)
- n – number of monthly instalments
This assumes each instalment is invested at the start of the month. With a step-up, the monthly amount rises by the chosen percentage every 12 months.
Important note
Mutual fund returns are not guaranteed and change with the market. Use this calculator to compare scenarios, not as a promise of returns.
Frequently asked questions
What return should I assume?
Use a conservative figure based on the fund category’s long-term history. Running the calculator with a lower and a higher rate shows a realistic range.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly investment by a fixed percentage every year, usually in line with salary growth. Even a 10% step-up makes a big difference over long periods.