SIP Calculator — Systematic Investment Plan

Estimate the maturity value of a monthly SIP in mutual funds using the standard future-value-of-annuity formula, with an optional annual step-up in your contribution.

Quick Facts

Formula
FV = P × [((1+i)^n − 1)/i] × (1+i)
i is the expected monthly return (annual rate ÷ 12) and n is the number of monthly installments (years × 12).
Assumption
Constant return, start-of-month investing
Actual mutual fund returns vary year to year; this projects a single fixed rate for planning purposes.

Your Results

Calculated
Total investment
-
Sum of all SIP installments
Estimated returns
-
Growth earned above what you invested
Maturity value
-
Total investment + estimated returns
Wealth gain multiple
-
Maturity value ÷ total investment

Ready

Enter your monthly investment, expected return, and tenure, then press Calculate.

How the SIP Calculator works

A Systematic Investment Plan (SIP) is a way of investing a fixed sum in a mutual fund at a regular interval — typically monthly — instead of investing a lump sum all at once. This calculator projects the maturity value of that stream of monthly investments using the standard future-value-of-annuity formula, the same math used by mutual fund platforms and AMFI-affiliated SIP calculators across India.

The formula

For a monthly investment P, an expected monthly rate of return i (the annual rate divided by 12), and n total monthly installments (years × 12), the projected maturity value is:

FV = P × [((1 + i)n − 1) / i] × (1 + i)

The trailing (1 + i) factor reflects that SIP installments are typically debited and invested at the start of each month (an annuity-due), so each installment gets one extra month of compounding compared to an ordinary end-of-month annuity. The total amount invested is simply P × n; the estimated returns are the maturity value minus that total.

Step-up SIPs

Many investors increase their monthly SIP each year as their income grows — this is a step-up (or "top-up") SIP. When you set an annual step-up percentage, the calculator raises the monthly installment by that percentage at the start of every 12-month block and compounds the running corpus month by month at the expected rate of return. With a 0% step-up this reduces to the standard closed-form annuity-due formula above.

Worked example

Investing ₹5,000 per month for 10 years at an expected 12% annual return (1% per month), with no step-up, the periodic rate is i = 0.01 and n = 120 installments. The formula gives a maturity value of roughly ₹11.6 lakh against a total investment of ₹6 lakh — about ₹5.6 lakh of estimated growth, illustrating how compounding on the earliest installments (which have the longest time to grow) drives the bulk of the gain.

What this calculator does not do

The projection assumes a single constant rate of return for the entire tenure. Real mutual fund NAVs fluctuate — equity funds in particular can post negative years — so the actual maturity value of any real SIP will differ from this straight-line projection. The result also excludes fund expense ratios, exit loads, and capital gains tax, all of which reduce your realized, post-tax return. Use the output as a planning estimate, not a guarantee, and treat the expected-return input as an assumption you are choosing, not a promised rate.

Frequently Asked Questions

What formula does this SIP calculator use?
It uses the standard future value of an annuity-due formula: FV = P × [((1+i)^n − 1)/i] × (1+i), where P is the monthly investment, i is the expected monthly rate of return (annual rate divided by 12), and n is the number of monthly installments (years × 12). The (1+i) factor accounts for each SIP installment being invested at the start of the month, which is how most mutual fund SIPs are structured.
What is a step-up SIP and how is it calculated?
A step-up (or top-up) SIP increases your monthly installment by a fixed percentage every 12 months, so your contribution grows with your income. This calculator applies the annual step-up percentage to the monthly investment at the start of each new year and compounds the running corpus month by month at the expected rate of return, which is mathematically equivalent to the annuity-due formula when the step-up is zero.
Does the calculator account for taxes, expense ratios, or inflation?
No. The result is a pre-tax, pre-expense-ratio projection based on a single constant assumed rate of return. It does not deduct fund expense ratios, capital gains tax, exit loads, or adjust for inflation, and actual mutual fund returns fluctuate year to year rather than compounding at a fixed rate. Treat the output as an illustrative estimate, not a guaranteed maturity value.
Why does the maturity value grow faster than the amount invested?
Each monthly installment compounds for a different length of time — money invested in month 1 grows for nearly the full tenure, while money invested in the last month barely grows at all. Over long tenures at a positive rate of return, the compounding on early installments produces returns that exceed the sum of all installments invested, which is why the estimated-returns figure can be larger than the total amount invested.

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