SIP Calculator
Plan regular investments and explore their potential future value.
How your investment grows
Illustrative projection using the contribution timing and return convention selected above. Actual market returns vary.
View chart data
Understand what a monthly SIP can and cannot tell you
A systematic investment plan describes how you contribute, not a guaranteed return. The outcome depends on the investment, market path, contribution dates and costs. This projection applies one assumed rate consistently so you can compare savings decisions. It does not forecast a fund or select an investment for you.
A practical example
With Rs 10,000 contributed every month for 10 years, your contributions total Rs 12 lakh before any step-up. Changing the return assumption changes projected growth, but does not change the amount contributed. Inflation adjustment translates the ending value into the purchasing power of money today.
Calculation method and assumptions
Periodic growth rate = (1 + annual return)^(1 / periods per year) - 1The default convention treats the annual input as an effective annual return. The calculator uses 12 contribution periods for a monthly SIP and four for a quarterly SIP. It adds each contribution before or after growth according to your timing selection. An annual step-up begins after one complete year and may be a percentage or a fixed rupee increase. Alternatively, choose the nominal convention to divide the annual rate by the selected periods per year. No intermediate rounding is applied; displayed amounts are rounded.
Inflation and goal planning
Today's-money value equals future value divided by (1 + inflation) raised to the number of years. A goal stated in today's purchasing power is first inflated to the future date. The goal solver then deducts the projected lump-sum value and calculates the starting periodic investment needed, including the chosen step-up. These values do not account for taxes or variable market returns.
SIP Calculator: Frequently Asked Questions
How does a SIP calculator with inflation work?
It calculates the projected future investment value, then divides it by the accumulated inflation factor to show today's purchasing power. Inflation does not reduce the nominal account balance; it changes what that balance could buy.
What is a SIP calculator?
A SIP calculator estimates the future value of regular investments from the installment amount, investment period and an assumed return. It separates the money contributed from projected investment growth. A SIP is a way to invest, not a fixed-interest product.
How much will a Rs 5,000 monthly SIP become in 10 years?
The contributions alone total Rs 6 lakh: Rs 5,000 multiplied by 120 months. The ending value depends on the return assumption and contribution timing. At zero return it remains Rs 6 lakh; a positive assumed return adds projected growth.
What is the monthly SIP calculation formula?
For equal end-of-month payments, future value is P x ((1 + r)^n - 1) / r, where P is the monthly investment, r is the monthly return and n is the number of payments. Beginning-month payments multiply this by (1 + r). At zero return, value is P x n.
How much SIP is needed for a Rs 1 crore goal?
There is no single monthly amount. The required SIP depends on years available, expected return, existing investment and future contribution increases. A Rs 1 crore target in today's purchasing power also requires an inflation assumption.
More questions (6)
What is the difference between SIP and lump sum investing?
A SIP invests successive amounts over time, while a lump sum invests one amount at the beginning. Compare equal budgets and realistic contribution dates; an earlier investment has more time exposed to both market gains and losses.
Does SIP return mean CAGR or XIRR?
The expected return here is a projection assumption. For the actual performance of dated SIP installments, use XIRR with every external cash flow and the final portfolio value. CAGR alone does not account for multiple investment dates.
Can a SIP lose money even over a long period?
Yes. Regular contributions do not remove market, credit or fund-specific risk. A smooth projection does not reproduce the sequence of actual returns, and a longer investment period is not a capital guarantee.
Why does this differ from another SIP calculator?
Calculators may use different monthly return conversions and payment dates. Effective annual mode preserves the entered annual return; nominal mode divides the annual rate by 12. A beginning-of-month contribution receives one more month of growth than an end-of-month contribution.
Are the projected returns guaranteed?
No. Market returns are uncertain and may be negative. The rate scenarios are illustrations, not forecasts, probabilities or a promised investment outcome.
Are fund expenses and taxes included?
Use a return assumption after ongoing fund expenses. The calculator does not deduct capital gains tax, exit loads or transaction-specific fees.