SIP Calculator — Mutual Fund SIP Returns & Growth

This free SIP calculator projects the future value of a Systematic Investment Plan — a fixed amount invested in a mutual fund at regular intervals. It uses the future-value-of-annuity formula and the principle of rupee-cost averaging, where fixed contributions buy more units when prices are low and fewer when high, lowering your average cost. It shows how much of your final corpus is your own contribution versus compounding growth, and supports step-up SIPs. All projections run locally in your browser for complete privacy.

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✨ Pro Tips for Best Results

  • Start Early: Starting a SIP just 5 years earlier can nearly double your final maturity corpus due to the power of compounding.
  • Step-up SIP: Increasing your monthly investment by just 10% every year can lead to a significantly larger wealth gain over time.
  • Stay Disciplined: SIPs work best when you continue investing during market downturns, as you buy more units at lower prices (Rupee Cost Averaging).

SIP vs. Lump Sum: Which is right for you?

A SIP is ideal for regular earners who want to build wealth without timing the market. It averages out the cost of purchase over time. A Lump Sum investment is better when you have a large windfall (like a bonus) and the market is undervalued. For most long-term goals, a combination of both works best, but SIP remains the most disciplined choice for consistent growth.

How are SIP returns calculated?

A Systematic Investment Plan (SIP) lets you invest a fixed amount into a mutual fund every month. Returns compound monthly using the formula FV = P × ((1 + r)n − 1) / r × (1 + r), where P is the monthly investment, r is the monthly rate of return (annual rate ÷ 12 ÷ 100), and n is the total number of months.

The power of SIP comes from rupee cost averaging and compounding. When markets fall, your fixed investment buys more units; when they rise, you buy fewer — averaging your cost over time and reducing timing risk. Even modest monthly amounts grow substantially over long horizons: ₹5,000/month at 12% annualised return for 20 years grows to roughly ₹49 lakh, against a principal of just ₹12 lakh. The calculator assumes a constant annual return rate, which mutual funds don't guarantee — real returns fluctuate, and past performance is not a guarantee of future results. Use this as a planning guide, not a prediction.

Related tools

Compound interest → FD calculator → EMI calculator →

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Related tools & guides

EMI calculator → Compound interest → FD calculator → SIP vs. FD guide → What is SIP? →

Related Guide: Learn more about SIP

InvestedGrowth (compounding)Years →
Early SIP years are mostly your own contributions; over time compounding growth (green) overtakes what you invested (grey).

Why SIPs use rupee-cost averaging

A Systematic Investment Plan invests a fixed amount on a fixed date regardless of market level. When the NAV is low your money buys more units; when it is high it buys fewer. Over a volatile cycle this lowers your average cost per unit below the average price — the mechanism known as rupee-cost averaging. It removes the need to time the market and turns volatility into an advantage.

The compounding maths

The future value uses FV = P · [((1+i)^n − 1) / i] · (1+i), where P is the monthly amount, i the monthly return and n the number of instalments. At ₹10,000/month for 20 years and a 12% annual return, you invest ₹24 lakh but accumulate roughly ₹99 lakh — about three-quarters of the corpus is growth, not contribution. The same SIP run for 25 instead of 20 years nearly doubles the final value, which is why starting early beats investing more later.

Step-up SIPs

Increasing your contribution 10% a year (a step-up SIP) roughly tracks salary growth and can lift the final corpus by 50% or more versus a flat SIP, because each raise compounds for the remaining tenure.

⚠️ Common Mistakes to Avoid

Frequently asked questions

What is a SIP and how does a SIP calculator work?

A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund at regular intervals. The calculator uses the future-value-of-annuity formula to project how your contributions plus compounding growth accumulate over time.

How does rupee-cost averaging work in a SIP?

Because you invest a fixed amount regardless of price, your money buys more fund units when the NAV is low and fewer when it is high. Over a volatile cycle this lowers your average cost per unit and removes the need to time the market.

How accurate are SIP calculator projections?

Projections are estimates based on a constant assumed return, but real mutual fund returns vary year to year and are not guaranteed. Use the calculator to compare scenarios rather than to predict an exact final amount.

How much of my SIP corpus is growth versus contribution?

Over long horizons, compounding dominates. For example, ₹10,000 a month for 20 years at a 12% assumed return invests ₹24 lakh but can grow to roughly ₹99 lakh — about three-quarters of the corpus is growth, not contribution.

What is a step-up SIP and is it worth it?

A step-up SIP raises your monthly contribution by a set percentage each year, roughly tracking salary growth. Increasing contributions 10% annually can lift the final corpus by 50% or more, because each raise compounds for the remaining term.

SIP vs lump sum — which is better?

A lump sum can win when markets only rise, but a SIP reduces timing risk through rupee-cost averaging and suits investors saving from regular income. SIPs also build discipline by automating contributions.

SIP vs fixed deposit (FD) — what is the difference?

An FD offers a fixed, guaranteed return with low risk, while a SIP in equity funds is market-linked, higher-risk, and historically higher-returning over the long term. FDs suit capital safety; SIPs suit long-term wealth creation.

Related guides

What is SIP? → SIP vs FD Returns →
Reviewed by the ToolsmithPro editorial team · Last updated June 2026. Every calculation and conversion runs entirely in your browser — your inputs are never uploaded, stored or shared. Formulas and methodology are documented on our about page; spot an error? tell us and we'll fix it.