How to use this calculator
- Enter or choose monthly investment.
- Enter or choose expected return (per year).
- Enter or choose time period.
- The estimated value updates as you type. Use Copy result or Share to keep it.
Formula
FV = P × ((1 + r)^n − 1) ÷ r × (1 + r)
- P
- monthly investment
- r
- expected monthly return = annual rate ÷ 12 ÷ 100
- n
- number of monthly instalments
Worked example
- P = ₹5,000, r = 12 ÷ 12 ÷ 100 = 0.01, n = 10 × 12 = 120.
- (1.01)^120 = 3.3004, so ((1.01)^120 − 1) ÷ 0.01 = 230.04.
- FV = 5,000 × 230.04 × 1.01 ≈ ₹11,61,695.
- Invested = 5,000 × 120 = ₹6,00,000, so estimated gains ≈ ₹5,61,695.
At a steady 12% a year, ₹5,000 a month for 10 years would be worth about ₹11.6 lakh.
What the result means
Gains overtake the amount invested only after several years, which is why SIPs reward staying invested. Try a lower return, such as 8%, to see a more cautious estimate.
Assumptions and limits
- Each instalment is invested at the start of the month (the convention used in Indian SIP illustrations).
- The return is the same every year and is compounded monthly.
- Mutual fund returns are not guaranteed and change every year; past returns do not predict future returns.
- Expense ratios, exit loads and taxes are not deducted.
Questions
Is the SIP return guaranteed?
No. Market-linked investments can lose value. The calculator only shows what a constant rate would produce, as a planning aid.
What return should I assume?
Use a rate you consider realistic for the fund type, and test a lower one too. Equity, debt and hybrid funds behave very differently.
What is a step-up SIP?
A SIP whose monthly amount increases each year, often in line with salary growth. This calculator assumes a constant amount.
Sources
Please note: Returns are illustrations at a constant rate, not predictions or guarantees. Investments can lose value. This is not investment advice.