Monthly Investment Amount (Rs)
50010 Lakhs
Investment Duration (Years)
010203040
Expected rate of return (% per annum)
0510152025
Amount Invested Total Growth
Total Amount Invested
Rs. 18,00,000
Investment Duration
15 Years
Your Future Amount
Rs. 0
What is a SIP Calculator?
A Systematic Investment Plan (SIP) lets you invest a fixed amount every month into a mutual fund, instead of investing a lump sum at once. This SIP Calculator estimates the future value of your monthly investments based on how much you invest, for how long, and at what expected rate of return.
SIPs work on two principles: rupee cost averaging (you buy more units when prices are low and fewer when prices are high, smoothing out market ups and downs) and compounding (your returns start earning their own returns over time). The longer you stay invested, the more compounding works in your favour.
How the Future Value is Calculated
FV = P × [ ( (1 + r)n − 1 ) / r ] × (1 + r)
FV: Future Value — what your SIP grows to
P: Monthly investment amount
n: Total number of monthly instalments (years × 12)
r: Effective monthly rate of return, derived from your annual expected return as: r = (1 + annual rate)1/12 − 1
Note: We use the effective monthly rate (not simply annual rate ÷ 12) because that is the industry-standard convention used by platforms like Groww — it correctly accounts for monthly compounding on an annual rate.
Example: Investing Rs. 10,000/month for 10 years at an expected 12% annual return grows to approximately Rs. 22,40,359 — of which Rs. 12,00,000 is what you invested, and Rs. 10,40,359 is the growth.
Frequently Asked Questions
What is a SIP calculator?
A SIP calculator estimates the future value of your monthly mutual fund investments based on your monthly amount, investment period, and expected annual return.
How is SIP future value calculated?
SIP future value uses the formula FV = P x [((1+r)^n - 1)/r] x (1+r), where P is your monthly investment, n is the number of months, and r is the effective monthly rate derived from your expected annual return.
Is the SIP calculator result guaranteed?
No. The calculator shows an estimate based on an assumed constant rate of return. Actual mutual fund returns fluctuate with market performance and are not guaranteed.