SIP Calculator

A SIP is a monthly annuity, so its future value uses the annuity-due formula (each instalment is invested at the start of the month):

FV = M × (((1 + i)ⁿ − 1) ÷ i) × (1 + i)

• M — monthly investment amount
• i — monthly return (annual return ÷ 12 ÷ 100)
• n — total number of instalments (years × 12)

Total invested = M × n. Projected gains = FV − total invested. The longer the tenure, the larger the share of the final value that comes from compounding rather than from your own deposits.

Invest ₹10,000 per month at an expected 12% annual return for 10 years:

• Monthly return i = 12 ÷ 12 ÷ 100 = 0.01; instalments n = 120
• (1.01)¹²⁰ ≈ 3.3004
• FV = 10,000 × ((3.3004 − 1) ÷ 0.01) × 1.01 = ₹23,23,391
• Total invested = 10,000 × 120 = ₹12,00,000
• Projected gains = 23,23,391 − 12,00,000 = ₹11,23,391

Projected maturity value is the headline number — what the SIP could be worth at the end of the tenure at your assumed return. Total invested is simply your own money put in. Projected gains is the difference: the part created by compounding.

Use this to set a realistic monthly target. If the maturity value falls short of your goal, the honest levers are: invest more each month, extend the tenure, or revisit the goal — not assuming a higher return. Try the step-up idea too: increasing your SIP by 10% every year can add a large amount over a decade.