SIP Calculator (India)
Project the maturity value of a monthly mutual fund SIP, and see how much of it is compounding.
SIP Investment Parameters
Wealth Growth Summary
What the projection actually shows
A SIP invests a fixed amount every month, so each instalment compounds for a different length of time. The first one you ever pay works for the entire term; the one you pay in the final month barely works at all. The maturity figure above is the sum of every instalment's individual growth, not a single lump sum compounded once.
The split bar is the part worth watching. At ₹10,000 a month for 10 years at 12%, your own contribution still makes up about half the corpus. Run the same SIP for 20 years and contribution falls to roughly a third — the rest is compounding. Time in the market moves this number far more than the monthly amount does, which is why starting early matters more than starting big.
Treat the return rate as an assumption, not a promise. It is the one input here that reality gets a vote on.
Frequently asked questions
How is SIP return calculated?
Each monthly instalment compounds for the time it stays invested, so the maturity value is M = P × ((1 + i)ⁿ − 1) / i × (1 + i), where P is the monthly amount, i is the monthly rate (annual ÷ 12 ÷ 100), and n is the number of instalments. The first instalment compounds for the full term; the last for a single month.
What return rate should I assume?
Equity mutual funds in India have historically returned about 10–14% annualised over long periods, so 12% is a common planning assumption. Debt funds sit lower, around 6–8%. These are historical averages, not guarantees — actual returns vary year to year and can be negative.
What is the difference between invested amount and wealth gain?
Invested amount is the sum of your instalments — what left your bank account. Wealth gain is everything above that, generated by compounding. On long tenures the gain overtakes the investment; at 12% over 20 years, roughly two-thirds of the final corpus is gain.
Does this account for inflation or taxes?
No. The figure shown is nominal. Equity gains above ₹1.25 lakh a year attract long-term capital gains tax, and inflation reduces real purchasing power — subtract roughly 5–6% from your assumed return to think in today’s money.
Is this a lump-sum or SIP calculation?
SIP — a fixed amount invested every month. A one-time lump sum uses simple compounding, M = P × (1 + r)ᵗ, and would give a different figure for the same total investment.