SIP Calculator — Project Your Investment Returns

How the SIP Calculator Works

A Systematic Investment Plan (SIP) means investing a fixed amount at regular intervals — typically monthly — into a mutual fund, rather than putting in one lump sum. Because each installment goes in at a different market price, this approach naturally averages your purchase cost over time, a concept often called rupee (or dollar) cost averaging. This calculator models that pattern of periodic investing and projects how it grows under a constant assumed rate of return, using the future value of an annuity formula: FV = P × [((1 + r)^n − 1) / r] × (1 + r), where P is your monthly investment, r is the monthly rate (your annual rate divided by 12 and by 100), and n is the total number of months you invest for.

Each of the outputs tells you something different. Total invested is simply your monthly amount multiplied by the number of months — the money that actually left your pocket. Final corpus is what that money grows into under the assumed rate. Estimated returns is the difference between the two — the growth contributed by compounding rather than your own contributions. Wealth gain percentage expresses that growth relative to what you put in, and CAGR (Compound Annual Growth Rate) restates the whole journey as a single annualized rate, which makes it easier to compare against other investments or time periods.

The single most important thing to understand about this tool is that it is a projection, not a promise. The formula assumes a constant rate of return every single month for the entire period, which real markets never actually deliver — actual mutual fund returns fluctuate year to year and depend on the specific fund you choose, its expense ratio, market conditions, and broader economic factors. A fund that historically averaged 12% annually did not return exactly 1% every month to get there; it likely had strong years and weak years that averaged out. This calculator smooths over that volatility by design, which makes it useful for understanding the shape of compounding but not for predicting an exact future number.

Use this tool for planning purposes: to compare how different monthly amounts, rates, or durations might shape your outcome, or to understand roughly what monthly investment could be needed to approach a target goal. It is not investment advice, and past or assumed rates of return do not guarantee future results. Before committing to an actual investment plan, consult a licensed financial advisor who can account for your full financial picture. If you're instead evaluating a one-time lump sum investment rather than periodic contributions, try the Loan Calculator to model borrowing costs on the other side of your finances.