SIP Calculator
Estimate the future value of a monthly Systematic Investment Plan (SIP) in mutual funds, based on your monthly investment amount, an assumed annual rate of return, and your investment period. The result is a projection based on the return you enter — actual mutual fund returns are market-linked and are never guaranteed.
Fill in the form and select "Calculate" to see your results here.
What is the SIP Calculator?
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund scheme every month instead of investing a lump sum all at once. This calculator projects what your monthly SIP could grow to by the end of your chosen investment period, assuming your investment amount and the annual rate of return stay constant throughout. It is a planning tool, not a promise — the actual return earned by any mutual fund depends on how the underlying market performs.
How SIP investing works
Each SIP instalment buys units of a mutual fund at that month's prevailing Net Asset Value (NAV). Because the NAV moves up and down with the market, a fixed monthly instalment automatically buys more units when prices are low and fewer units when prices are high. This effect, commonly called rupee-cost averaging, tends to smooth out the average purchase cost over time compared to investing a lump sum on a single date. The other core benefit of a SIP is discipline: committing to a fixed monthly investment builds a savings habit and removes the temptation to time the market.
How to use this calculator
- Enter the amount you plan to invest every month.
- Enter the annual rate of return you want to assume for the projection. This is not a guaranteed figure — it is typically based on the historical long-term average of the category of fund you're considering, adjusted for your own expectations.
- Enter the number of years you intend to stay invested. Decimals are allowed if your period isn't a whole number of years.
- Select "Calculate SIP Returns" to see your total investment, estimated returns, and projected maturity value.
Formula
This is the standard future-value-of-an-annuity-due formula, applied on the assumption that each month's instalment is invested at the start of the month and compounds monthly at the rate you enter — the convention used by most SIP calculators, including Groww's. The monthly rate is derived from your annual return assumption as an effective rate (the 12th root of 1 plus the annual rate), rather than simply dividing the annual rate by 12 — this ensures compounding it for 12 months reproduces exactly the annual return you entered. Total invested is simply P × n; estimated returns are the difference between the future value and the total invested.
Example
Suppose you invest ₹10,000 every month for 10 years, assuming a constant 12% annual return compounded monthly. Total invested over the period is ₹10,000 × 120 months = ₹12,00,000. The effective monthly rate works out to (1.12)^(1/12) − 1 ≈ 0.9489% (slightly below the simple 12% ÷ 12 = 1% you might expect — see the formula above). Applying that rate over 120 instalments, the projected future value works out to approximately ₹22,40,359 — roughly ₹22.4 lakh. That means the estimated gain over your ₹12,00,000 in contributions is approximately ₹10,40,359. Change the annual return assumption in the calculator above and you'll see how sensitive the final corpus is to that single assumption.
Factors that affect your SIP returns
- The assumed rate of return is not guaranteed. Mutual fund returns are market-linked and fluctuate year to year; a long-term average is only a planning assumption, not a promise of future performance.
- Market volatility. Actual returns rarely follow a smooth, constant path — some years may be sharply higher or lower than your assumed average, even if the long-run average roughly holds.
- Investment horizon. Longer SIP periods give compounding more time to work and generally reduce (but do not eliminate) the impact of short-term market swings on your final corpus.
- Expense ratio and other costs. This calculator projects gross returns based on the rate you enter; it does not separately deduct a fund's expense ratio, exit load, or other charges, which would reduce your actual net return.
Frequently Asked Questions
No. The annual return you enter is an assumption you choose, often based on a fund category's historical average. Mutual fund investments are subject to market risk, and actual returns can be higher or lower than any assumption used here — including negative in some periods.
It's the natural effect of investing a fixed amount at regular intervals in a market that moves up and down. Your fixed instalment buys more fund units when the NAV is low and fewer units when the NAV is high, which can lower your average cost per unit over time compared to a single lump-sum purchase — though it does not guarantee a profit or protect against a loss in a falling market.
Yes. Most mutual fund SIPs can be paused or stopped at any time without penalty, though some funds may charge an exit load if you redeem units held for less than a specified period (commonly one year for equity funds). Stopping early will reduce your total invested amount and, in turn, the final corpus compared to this projection.
No. This calculator shows a pre-tax, pre-expense projection of your investment growth. It does not deduct a fund's expense ratio, any applicable exit load, or capital gains tax on withdrawal. Your actual post-tax, post-cost return will typically be lower than the figure shown here.
Many investors use a "step-up" SIP, increasing the monthly instalment each year in line with rising income. This calculator assumes a constant monthly instalment throughout the period, so a step-up SIP would generally reach a higher final corpus than shown here for the same starting amount.
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Calculations are estimates based on the information entered and an assumed constant rate of return. They do not account for expense ratios, exit loads, taxes on capital gains, or real-world market volatility, and are not a substitute for professional financial advice. See our full disclaimer.