SIP calculator: see how your monthly investment grows
Enter an amount, a time period and an expected return. Then read the short lesson below to understand what the numbers mean.
Lesson: why time matters more than amount
- Start with an example. Say you invest ₹5,000 every month for 10 years and earn 12% a year. You put in ₹6.00 lakh and it grows to about ₹11.62 lakh.
- Now only change the time. Keep ₹5,000 a month but continue for 20 years. You put in ₹12.00 lakh, double the money, but it grows to about ₹49.96 lakh, roughly 4.3 times as much.
- Why does that happen? This is compounding: the returns you earn start earning returns of their own. In the later years most of the growth comes from past gains, not from your new instalments.
- What to take away. Starting early, and staying invested through ups and downs, does more of the work than a bigger monthly amount started late.
Remember: 12% is an assumption, not a promise. Equity funds can lose money in some years. Check a fund's past record and costs, and speak to a SEBI-registered adviser if you are unsure.
Questions people ask
What is a SIP?
A systematic investment plan (SIP) means investing a fixed amount in a mutual fund every month instead of a lump sum. Each instalment buys units at that day's price.
How is SIP return calculated?
This calculator uses the standard future-value formula with monthly compounding: FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the monthly amount, i is the yearly return ÷ 12 and n is the number of months.
Is the SIP return guaranteed?
No. Equity mutual fund returns go up and down every year. The calculator assumes a steady return only to show how compounding works; real results will differ.
What is a step-up SIP?
A step-up SIP raises the monthly amount every year, for example by 10% when your salary grows. Try the step-up box in the calculator to see the difference.
For education only. TotalMarket does not recommend any fund or investment.