Calculate your Systematic Investment Plan (SIP) returns and maturity amount.
A SIP calculator (Systematic Investment Plan calculator) helps you estimate the future value of your monthly mutual fund investments. By entering your monthly SIP amount, expected annual return rate, and investment duration, our online SIP return calculator instantly shows how much your wealth will grow through the power of compounding.
SIP allows you to invest a fixed amount every month in a mutual fund, often starting from a modest minimum amount depending on the fund and country. The money automatically debits from your bank account on a set date. You receive units of the fund based on that day's NAV (Net Asset Value). Over time, as markets rise, the value of your accumulated units grows. SIP also benefits from rupee cost averaging — you buy more units when prices are low and fewer when high.
Future Value = P × [(1 + r)^n − 1] / r × (1 + r), where P = Monthly SIP amount, r = Monthly return rate (Annual rate ÷ 12 ÷ 100), n = Number of months. For example, investing a fixed amount monthly at 12% annual returns for 20 years can grow to roughly 4 times the total amount you actually contributed — the difference between your total invested amount and the final value is entirely compounding growth.
The longer your SIP runs, the more dramatically compounding works in your favor. The same monthly contribution can grow to roughly double the invested amount over 10 years, several times the invested amount over 20 years, and many times over by 30 years, as compounding accelerates growth in the later years far more than in the early ones. Staying invested through market ups and downs is key to building wealth through SIP.
If you have a large amount to invest at once, a lumpsum investment gives higher returns in a rising market. However, SIP reduces timing risk and is better for regular income earners. Experts often suggest investing lumpsum amounts through STP (Systematic Transfer Plan) — investing in a liquid fund first and transferring to equity funds monthly — to combine the benefits of both approaches.
A Systematic Investment Plan (SIP) involves investing a fixed amount at regular intervals, typically monthly, into a mutual fund or similar investment vehicle, and calculating projected SIP returns requires accounting for the fact that each individual contribution compounds for a different length of time — the very first contribution has the entire investment period to grow, while the final contribution has almost no time to compound before the projection endpoint, making SIP growth calculations more complex than a simple lump-sum future value calculation.
This regular, disciplined contribution structure naturally implements dollar-cost averaging, automatically buying more fund units when prices are lower and fewer when prices are higher, which smooths out the impact of market volatility on the average purchase price compared to attempting to time a single large lump-sum investment.
Due to the compounding effect across many individual contributions over time, someone starting a SIP earlier with smaller monthly amounts can often accumulate more total wealth by a target date than someone starting later with larger monthly amounts, purely because of the additional years each early contribution has to compound. This makes consistency and an early start generally more impactful to long-term SIP outcomes than the specific monthly contribution amount alone.
SIP stands for Systematic Investment Plan. It allows you to invest a fixed amount regularly (monthly/quarterly) in mutual funds instead of a lump sum.
Many mutual funds and investment platforms allow SIP with a low minimum monthly contribution, often the equivalent of a modest amount in your local currency, making it accessible to most investors.
Equity mutual funds have historically delivered 10-15% annual returns over long periods. However, past returns do not guarantee future performance.
SIPs in mutual funds are subject to market risk. However, regular investing through SIP reduces the impact of market volatility through rupee cost averaging.
