SIP Calculator

What is a SIP and how does it grow?

A Systematic Investment Plan (SIP) invests a fixed amount into a mutual fund every month. Two forces drive its growth: your steady contributions, and compounding — returns earning further returns. Over long periods, compounding does most of the heavy lifting, which is why the returns slice of the chart above overtakes your contributions the longer you stay invested.

Why starting early matters so much

Because compounding accelerates over time, the first years you invest are the most valuable. Someone who starts a ₹10,000 SIP at 25 can end up with far more at 60 than someone who starts at 35 investing the same — even though the difference is only ten years. Time in the market beats the size of the SIP.

How the calculator works

It assumes a steady expected annual return compounded monthly. Real fund returns fluctuate year to year, so treat the maturity value as a long-term projection, not a guarantee. Increase the duration and watch how dramatically the returns portion grows.

Related tools

• SIP vs Lump Sum — invest gradually or all at once?
• Lump Sum Calculator — for a one-time investment.
• EPF Calculator — compounding on your retirement savings.

Frequently asked questions

How is SIP maturity calculated?

Each monthly contribution compounds at your expected return until the end of the period. The maturity is the future value of all those monthly instalments combined.

Is SIP better than a lump sum?

For money you already have, a lump sum usually earns more in expectation because it compounds longer. A SIP suits investing from monthly income and reduces timing risk — see the SIP vs Lump Sum tool.

What return should I assume for a SIP?

Equity mutual funds have historically returned roughly 10–12% over long periods in India, but returns vary and aren't guaranteed. Use a conservative figure and check different scenarios.