How the SIP Calculator works
The SIPfy SIP Calculator uses the future value of an annuity formula to project how much your monthly Systematic Investment Plan will be worth at the end of your chosen tenure. The formula is FV = P × [((1+i)ⁿ − 1) / i] × (1+i), where P is your monthly SIP amount, i is the monthly interest rate (annual rate divided by 12 and then by 100), and n is the total number of months you invest. This is the same formula used by every mutual fund house in India, so the numbers you see here will match what you'd get from a fund house's own calculator — with the added benefit of a transparent year-by-year breakdown and the ability to model step-up SIPs.
When you move the sliders above, the calculator instantly recomputes the future value, total amount invested, total returns earned, and a full year-by-year breakdown table. The donut chart shows the split between the money you actually put in versus the money compounding earned for you — a surprisingly powerful visualisation that shows how, over long tenures, returns can dwarf the original investment. The line chart plots both your cumulative invested amount (dashed line) and your growing corpus (solid line) so you can see the widening gap that compounding creates.
Why SIPs work — the power of rupee-cost averaging
A Systematic Investment Plan works because it removes the single hardest decision in investing: when to invest. When you invest a lump sum, you're betting that today's price is a good entry point. When you invest via SIP, you spread your purchases across many months, automatically buying more units when prices are low and fewer when prices are high. This is called rupee-cost averaging, and over multi-year horizons it tends to smooth out the volatility of equity markets.
The second magic ingredient is compounding. Each SIP instalment earns returns, and those returns themselves earn returns in subsequent months. The longer your SIP runs, the more dramatic this compounding effect becomes. A ₹10,000 monthly SIP at 12% for 10 years grows to about ₹23 lakh. Run the same SIP for 20 years and the corpus jumps to ₹98.9 lakh — more than 4× the corpus in only 2× the time. That non-linear growth is the mathematical fingerprint of compounding, and it's the single most important reason to start a SIP as early as possible.
What return rate should I use?
The expected return rate is the most sensitive input in the SIP Calculator — small changes produce large differences in the final corpus. Here's a sensible framework for choosing a rate. For equity mutual fund SIPs (large-cap, flexi-cap, mid- and small-cap), historical data from the last 15–20 years suggests annualised returns of 10–14% are realistic over 7+ year horizons. Use 12% as a moderate assumption, 10% as conservative, and 14% only if you're comfortable with higher volatility. For hybrid funds (aggressive hybrid, balanced advantage), use 8–10%. For debt funds, use 6–7% — closer to fixed-income returns.
It's important to remember that past performance does not guarantee future results. The SIP Calculator shows you what your corpus would be if the assumed return materialises. In reality, returns arrive in lumps — some years +25%, some years -15% — and only smooth out over long horizons. The calculator's value is in giving you a planning baseline, not a promise.
How to use this calculator — a 4-step workflow
- Set your monthly investment. Start with an amount you can comfortably sustain every month for the full tenure. A common rule is at least 20% of your post-tax income, but if you're just starting, even ₹500/month builds the habit.
- Choose a realistic return rate. Use 12% for equity SIPs, 8–10% for hybrid, 6–7% for debt. If you're unsure, 10% is a safe middle ground.
- Pick your tenure. The longer, the better — compounding rewards patience. Try 15, 20, and 25 years to see the dramatic difference.
- Read the year-by-year table. Notice how the "Returns" column grows faster than the "Invested" column over time — that's compounding made visible.
Frequently asked questions about the SIP Calculator
Is the SIP Calculator free to use? Yes, completely free. No sign-up, no email wall, no premium tier. Run as many calculations as you like.
Does the calculator save my data? When you click "Save calculation", the inputs are stored in your browser's local storage. The data never leaves your device — there's no server, no database, no account.
How accurate is the SIP Calculator? The math is exact — the formula used is the standard future-value-of-annuity formula. The accuracy of the projection depends entirely on whether your assumed return rate matches reality. Use conservative assumptions for planning.
Can I model a step-up SIP here? This calculator handles fixed monthly SIPs. For step-up SIPs (where you increase the monthly amount every year), use our dedicated Step-up SIP Calculator — it shows how a 10% annual top-up nearly doubles your corpus.
Start your first SIP today
Once you've used the SIP Calculator to find a monthly amount and tenure that fit your goals, the next step is to actually start the SIP. You'll need to complete your KYC (one-time process requiring PAN, address proof, and a video verification), choose a mutual fund that matches your risk profile, and set up an auto-debit mandate from your bank account. Most fund houses and platforms like Kuvera, Groww, Zerodha Coin, and the AMC direct sites let you start a SIP in under 10 minutes once KYC is done.
Remember: the most important thing about a SIP is not the amount or the fund — it's starting. The SIP Calculator can show you what's possible; only you can take the first step. Use the numbers above to commit to a monthly amount, automate it, and let compounding do its work over the years.
The best time to start a SIP was twenty years ago. The second best time is today. — A saying worth taking seriously.
For more on SIP strategies, taxation, and fund selection, browse the SIPfy blog or check our complete SIP FAQ. If you have questions about this calculator or want a feature added, reach out — we read every message.