Assumptions
- Returns are annualized and compounded based on the selected model.
- Taxes, expense ratios, exit loads, and transaction fees are not included unless stated.
- Future returns can be lower or higher than the assumed rate.
Formula Used
FV = P x [((1 + r)^n - 1) / r] x (1 + r)
P is monthly SIP, r is monthly expected return, and n is total months. The final multiplier assumes investment at the start of each month.
Example SIP calculation
- Invest 10,000 per month.
- Assume 12% annual return for 10 years.
- The calculator estimates total invested amount, growth, and final value.
Common Mistakes and Limitations
Common mistakes
- Treating an estimate as a guaranteed outcome.
- Ignoring fees, taxes, penalties, or changing rates.
- Using annual and monthly rates interchangeably.
- Forgetting that a calculator is only as reliable as the inputs entered.
Limitations
- The rule may be too simple for complex financial situations.
- It does not replace personalized advice from a qualified professional.
- Real results can change because of taxes, fees, rates, inflation, and behavior.
Full guide
How to use this calculator well
Open for inputs, methodology, useful cases, and deeper educational notes.
What is SIP Calculator?
SIP Calculator answers a specific investment question without opening a spreadsheet. Enter monthly investment, expected annual return, tenure and inflation rate, review the estimate as you type, and open the formula block to see how the result is produced.
It uses global defaults and keeps the assumptions visible so you can adapt the estimate to your market.
Inputs explained
Monthly investment
The amount you plan to invest every month, on a fixed date. Supported range: 0 to 5,000,000.
Why it matters: Along with the time period, this is what you actually control — returns are only an assumption.
Expected annual return
The average yearly return you want to assume, before tax and fees. Supported range: 0 to 60.
Why it matters: This is an assumption, not a promise — small changes compound into large differences over long periods.
Model a range rather than one figure, and check what a lower return does to the answer.
Tenure
How many years the money stays invested before you need it. Supported range: 0 to 50.
Why it matters: Time in the market compounds returns, so the final value is very sensitive to this.
Match it to the goal — a school fee in 6 years, retirement in 25.
Inflation rate
The yearly rise in prices you want to assume, used to show the result in today's money. Supported range: 0 to 20.
Why it matters: Without it, a large future number can look better than it will actually feel.
Use this when
You want a quick planning estimate before comparing detailed options.
This answers
Estimate whether a monthly SIP is aligned with a target corpus or time horizon.
Example situation
A beginner wants to see how a monthly investment habit may grow over several years under an assumed return.
Do not use this for
The rule may be too simple for complex financial situations.
Methodology
Each monthly instalment is compounded for the number of months remaining until the end of the period, using the annual return converted to a monthly rate. Every instalment is assumed to be paid on time and nothing is withdrawn along the way.
Fund expense ratios, exit loads, and capital-gains tax are not applied, so the maturity value is shown before those costs.
Why this matters
Estimate whether a monthly SIP is aligned with a target corpus or time horizon.
Seeing the split between what you contribute and what compounding adds is usually what makes a long horizon feel worth committing to.
When this tool is useful
- You want a quick planning estimate before comparing detailed options.
- You need a simple way to explain the decision to yourself or a family member.
Sources and review notes
Source links are provided for methodology and rule checking. Always verify live tax or lender rules before making decisions.
Related Calculators
View hub
SIP Calculator With Inflation
Estimate SIP future value and its purchasing power after inflation.
Open tool
Global
SIP Calculator for 1 Crore
Estimate the monthly investment needed to target a 1 crore corpus over your chosen timeline.
Open tool
Global
SIP vs Lump Sum Calculator
Compare estimated future value from monthly SIP investing and a one-time lump sum investment.
Open tool
Global
SIP Calculator India
Calculate SIP future value in INR with India-friendly examples and formatting.
Open tool
India
SIP Calculator for 1 Crore India
Estimate the monthly SIP required to target ₹1 crore.
Open tool
IndiaFAQ
What is a SIP calculator?
A SIP calculator estimates the future value of monthly SIP investments from the inputs you provide. It shows the formula and the assumptions so you can check the working, rather than predicting a guaranteed outcome.
Are the results guaranteed?
No. The results are estimates based on the stated formula, your input values, and the assumptions listed on this page. Interest rates, tax rules, market returns, and inflation all change.
How much SIP is needed for 1 crore?
Use the SIP calculator for 1 crore page to model the monthly amount needed for a target corpus.
Can inflation be included?
Yes. Add an inflation rate to see the estimated purchasing power of the future corpus.