SIP Calculator (Systematic Investment Plan)
Calculate your estimated mutual fund wealth from disciplined monthly investments with compounding returns in India.
Increasing your monthly investment annually in tandem with appraisals significantly accelerates your terminal corpus.
What does this number actually mean?
Over 15 years, your total out-of-pocket contribution of ₹18,00,000 generates an estimated gain of ₹32,45,760, growing into a final estimated corpus of ₹50,45,760.
- Your money multiplies by roughly 2.8x over this timeframe.
- Compounding accelerates heavily in the final third of your investment period; patience is what creates the majority of the wealth.
- This estimate assumes a constant rate of return. Real equity returns fluctuate year to year, but long-term averages have historically rewarded disciplined investors.
How This Calculator Works
SIP returns are calculated using the future value of an annuity due formula. Each monthly installment compounds for the exact number of months remaining in your investment horizon.
M = P × ({[1 + i]^n - 1} / i) × (1 + i)Variables in Formula:
Worked Step-by-Step Example
Suppose you invest ₹10,000 per month in a broad market index fund (such as Nifty 50) compounding at an illustrative 12% annual rate for 15 years.
Key takeaway: More than 64% of your final ₹50.4 Lakhs maturity amount came entirely from compounding returns rather than your own salary contributions.
Common Mistakes to Avoid
⚠ Pausing SIP during market crashes
Market downturns allow your monthly SIP to purchase mutual fund units at lower NAVs (Rupee Cost Averaging). Pausing during dips destroys this core compounding advantage.
⚠ Ignoring annual salary increments
As your salary grows, keeping your SIP static erodes its relative impact. Increasing your SIP by even 10% annually can nearly double your eventual corpus.
⚠ Expecting straight-line monthly returns
The 12% calculation is an annualized CAGR expectation over a decade or more. Individual years may deliver +25% or -15%.
⚠ Failing to check expense ratios
Investing in Direct plans instead of Regular plans saves up to 1% annually in commission drag, compounding into lakhs over 15+ years.
Complementary Tools
Learn More on This Topic
"Calculator = calculate one thing. Financial Health Check = understand my overall situation."
Ready to see how your investments, debts, emergency fund, and cash flow fit together? Answer 5 simple questions to get your personalized financial blueprint.