Finance & Banking CalcyZone Calculator

SIP Calculator

Estimate the maturity value of a monthly Systematic Investment Plan (SIP) in mutual funds for any expected return and duration.

Total invested

₹12,00,000

Estimated returns

₹11,23,391

Maturity value

₹23,23,391

Step-by-step working

i = 12 / 12 / 100 = 0.010000
n = 120 instalments
((1 + i)^n − 1) / i = 230.0387
FV = 10,000 × 230.0387 × 1.010000 = ₹23,23,390.76

Mathematical Formula

FV = P × [((1 + i)^n − 1) / i] × (1 + i), where P = monthly SIP, i = annual return / 12 / 100, n = number of months (instalments invested at the start of each month).

Overview & Explanation

A SIP invests a fixed amount every month. Each instalment compounds for the months remaining, so the corpus is the future value of an annuity due.

How It Works

Convert the expected annual return to a monthly rate i.
Count the instalments n = years × 12.
Apply the annuity-due future-value formula.
Returns = maturity value − total invested.

Practical Applications

Planning a retirement or child-education corpus.
Comparing SIP amounts needed for a goal.
Seeing the effect of staying invested longer.

Example 1: ₹10,000/month for 10 years at 12%

A common equity mutual fund assumption.

Inputs

Monthly SIP amount (₹): 10000 · Expected return (% p.a.): 12 · Investment period (years): 10

= entered

Step 1

i = 12 / 12 / 100 = 0.010000

Step 2

n = 120 instalments

Step 3

((1 + i)^n − 1) / i = 230.0387

Step 4

FV = 10,000 × 230.0387 × 1.010000 = ₹23,23,390.76

Maturity value

Result

= ₹23,23,391

Example 2: ₹5,000/month for 20 years at 12%

Half the amount, double the time.

Inputs

Monthly SIP amount (₹): 5000 · Expected return (% p.a.): 12 · Investment period (years): 20

= entered

Step 1

i = 12 / 12 / 100 = 0.010000

Step 2

n = 240 instalments

Step 3

((1 + i)^n − 1) / i = 989.2554

Step 4

FV = 5,000 × 989.2554 × 1.010000 = ₹49,95,739.6

Maturity value

Result

= ₹49,95,740

How it's calculated & sources

FV = P × [((1 + i)^n − 1) / i] × (1 + i), where P = monthly SIP, i = annual return / 12 / 100, n = number of months (instalments invested at the start of each month).

Frequently Asked Questions

Are SIP returns guaranteed?

No. Mutual fund returns are market-linked. The calculator assumes a constant return to illustrate growth; actual results vary.

Why does the formula multiply by (1 + i)?

SIP instalments are invested at the beginning of each period, so every instalment earns one extra month of growth compared with an ordinary annuity.

Is the monthly rate exactly annual rate ÷ 12?

This calculator, like most AMC calculators, uses annual rate ÷ 12. Some tools use the compound monthly equivalent (1+R)^(1/12) − 1, which gives slightly lower values.

What return should I assume?

Use a conservative figure: many planners use 10–12% for diversified equity funds and 6–7% for debt funds over long periods.