What Is a SIP Calculator?
A SIP (Systematic Investment Plan) calculator is a financial planning tool that estimates the future value of regular contributions using a compound-growth assumption. By entering a monthly contribution, an annual return assumption, and an investment duration, it shows an illustrative corpus alongside the amount contributed.
SIP calculators can help people compare scenarios: for example, how a different contribution, horizon, or step-up changes an estimate. They cannot predict a fund's value, choose a suitable investment, or replace the product documents and professional advice needed for an investment decision.
SIP Formula Explained
This calculator uses the standard end-of-month SIP formula:
FV = P × [ (1 + r)ⁿ − 1 ] / r Where: P = Monthly SIP amount r = Monthly interest rate (annual rate ÷ 12 ÷ 100) n = Total number of months (years × 12) Example: ₹10,000/month @ 12% for 20 years r = 12 ÷ 12 ÷ 100 = 0.01 n = 20 × 12 = 240 FV = 10000 × [(1.01²⁴⁰ − 1) / 0.01] = ₹98.93 Lakhs
The result changes if a fund uses a different contribution date, return pattern, fee structure, or payment schedule.
Benefits of SIP Investing
Regular Contribution Schedule
A recurring contribution can make it easier to model a long-term saving habit. The amount, frequency, and auto-debit rules depend on the selected product and platform.
Scenario Comparison
Changing the contribution, horizon, rate assumption, and inflation setting helps reveal how sensitive a projection is. It does not make any scenario more likely to occur.
Rupee Cost Averaging
Regular purchases may reduce the impact of putting all money in on one date. They do not assure a profit, protect against losses, or guarantee a lower average purchase cost.
Step-Up Planning
A planned annual increase can be useful to model, but only if it remains affordable. The calculator assumes each selected step-up happens as scheduled.
Transparent Assumptions
The result separates contributed capital from estimated growth, making it easier to question the assumptions before relying on a target.
Product Terms Matter
Liquidity, lock-ins, exit loads, taxation, and risk differ across funds and account types. Review those terms independently of this calculator.
Illustrative Effect of a Longer Horizon
With the same assumed rate and contribution, a longer horizon gives more monthly contributions time to compound. These examples are illustrations, not retirement forecasts.
| Start Age | Monthly SIP | Duration | Total Invested | Corpus at 60 | Extra from starting early |
|---|---|---|---|---|---|
| Age 25 | ₹5,000 | 35 years | ₹21.00 L | ₹3.22 Cr | Baseline |
| Age 30 | ₹5,000 | 30 years | ₹18.00 L | ₹1.75 Cr | −₹1.47 Cr |
| Age 35 | ₹5,000 | 25 years | ₹15.00 L | ₹93.94 L | −₹2.28 Cr |
SIP and Fixed Deposit: Different Planning Assumptions
| Feature | SIP (Equity MF) | Fixed Deposit |
|---|---|---|
| Return source | Market-linked; value can rise or fall | Rate and terms are set by the deposit agreement |
| Outcome certainty | No guaranteed investment outcome | Subject to the provider's terms and applicable protections |
| Inflation impact | Depends on market performance and inflation | Depends on the contracted rate and inflation |
| Tax treatment | Depends on the investment, holding period, and current law | Depends on the deposit, holder, and current law |
| Access to money | Depends on scheme rules, lock-ins, and exit charges | Depends on maturity terms and premature-withdrawal rules |
| Decision factors | Risk tolerance, horizon, costs, and product documents | Term, provider, rate, access rules, and protections |
How Inflation Affects SIP Returns
Nominal corpus projections look impressive but don't tell the full story. Inflation erodes purchasing power over time. At 6% annual inflation, prices double every 12 years. A corpus of ₹1 Crore accumulated over 20 years is worth only ~₹31 Lakhs in today's purchasing power.
This is why real returns — returns after the effect of inflation — are useful for long-term planning. Whether an investment maintains purchasing power depends on its actual returns, costs, taxes, and future inflation; no asset class can assure that outcome.
Use the inflation adjustment toggle in our SIP calculator to convert your projected corpus into today's purchasing power equivalent for more realistic financial planning.
Continue Your Investment Planning
Work backward from a target with the Savings Goal Calculator, compare a one-time investment with the Compound Interest Calculator, check future purchasing power with the Inflation Calculator, or explore a longer-term goal in the Retirement Corpus & Income Calculator.
If you are planning withdrawals from an accumulated corpus, use the SWP Calculator to compare withdrawal scenarios.
Frequently Asked Questions
Disclaimer: This SIP calculator is for educational and informational purposes only. All projections are estimates based on assumed constant annual returns and do not account for expense ratios, exit loads, taxes, or actual fund performance. Mutual fund investments are subject to market risks. Past performance does not guarantee future results. Please consult a SEBI-registered investment advisor before making any investment decisions.