SIP / Investment Calculator
Future value of monthly SIP using end-of-month contributions and the standard step-up growth formula.
Project mutual fund SIP wealth with a stated CAGR, view future value versus total invested, and inspect a growth curve—handy for step-up SIP discussions even though this form keeps the instalment flat (see formula notes for annuity-due timing).
SIP inputs
Monthly investment, expected CAGR, and duration.
Wealth projection
0% return reduces to simple accumulation.
- Your contributions — 35.7%
- Estimated growth — 64.3%
Gains assume your stated CAGR holds every month—actual markets vary.
SIP future value formula
Monthly investments compound at a monthly rate. The tool plots cumulative value each month so you can see the curvature of growth (the “power of compounding”).
End-of-month growth with annuity-due adjustment
FV = PMT × [((1 + r_m)^n − 1) / r_m] × (1 + r_m) If r_m = 0: FV = PMT × n r_m = annual_return / 12 / 100
- PMT
- Monthly investment amount.
- n
- Number of monthly instalments.
- r_m
- Monthly rate derived from assumed annual CAGR.
Small differences versus bank calculators usually come from day-count, exact instalment dates, or whether instalments are beginning vs end of period. Always read your scheme’s illustration document.
Worked example: ₹10,000/month SIP for 15 years
A typical mid-career SIP into a diversified equity fund. The numbers below assume the fund returns the long-term Nifty 50 average; actual outcomes will vary year to year.
- Monthly investment
- ₹10,000
- Tenure
- 15 years (180 months)
- Assumed CAGR
- 12% p.a.
- Total invested
- ₹18,00,000
- Estimated corpus
- ₹50,45,760
- Estimated gain
- ₹32,45,760
For comparison, the same ₹10,000/month at 8% (a more conservative debt/hybrid assumption) compounds to about ₹34.6 lakh over 15 years — still ₹16 lakh of gain on ₹18 lakh invested, but ₹16 lakh less than the equity case. The equity premium is real but you have to live through the volatility to capture it.
Tax: under the post-July 2024 rules, equity LTCG above ₹1.25 lakh per financial year is taxed at 12.5%. Holding for 12+ months and redeeming in tranches across financial years can keep most household SIP gains in the lowest tax band.
Key terms
- CAGR
- Compound annual growth rate—a smoothed yearly return that would reproduce your ending value.
- Corpus
- Total value of investments at a point in time, including gains or losses.
- NAV
- Net asset value per unit of a mutual fund—fluctuates with the underlying portfolio.
- Rupee cost averaging
- Buying more units when NAV is low and fewer when high—psychological and mechanical benefit of SIPs.
Benefits
- Visualize how starting earlier steepens the growth curve (time in market).
- Compare conservative vs optimistic return assumptions side by side.
- Understand total invested vs gains before fees and tax.
FAQ
Why does the formula multiply by (1+r) at the end?▼
This implementation follows a common mutual-fund SIP convention where each instalment is invested at the beginning of the month and compounds through month-end—equivalent to an annuity-due style adjustment. At 0% return the future value is simply monthly amount × months.
Are returns guaranteed?▼
No. Market-linked funds fluctuate. The line chart is a smooth projection at a constant assumed CAGR, not a forecast.
What about STP/lump sum + SIP?▼
This tool models uniform monthly contributions only. Blending lump sums needs separate calculations or spreadsheets.
Does it include tax on gains?▼
Not yet. Equity and debt taxation differ by holding period and instrument. Net post-tax wealth would be lower than shown.