Mutual Fund SIP Calculator
Estimate the future wealth value of your monthly mutual fund investments.
Milestone Wealth Growth
At selected return| Timeline | Amount Invested | Estimated Wealth |
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SIP Wealth Projection
Over 10 Years @ 12% p.a.
Related Financial Calculators
How Does the SIP Return Formula Work?
Standard SIP Formula
The maturity value of a periodic mutual fund SIP is calculated as an annuity due:
- P = Monthly investment amount
- i = Monthly return rate (Annual Rate ÷ 12 ÷ 100)
- n = Total number of monthly installments (Years × 12)
The Power of Rupee-Cost Averaging
SIP removes the need to time the stock market. When market prices fall, your fixed monthly allocation buys more mutual fund units. When markets rise, you accumulate higher value on all previous units.
For example, investing ₹5,000 monthly for 20 years at a 12% annualized return yields over ₹49.9 Lakhs on a total investment of just ₹12 Lakhs!
Frequently Asked Questions (FAQs)
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) allows an investor to allocate a fixed sum of money at regular monthly intervals into a mutual fund scheme, rather than making a lump sum deposit. It enforces financial discipline and harnesses compounding interest over time.
What is a Step-Up SIP?
A Step-Up or Top-Up SIP allows you to automatically increase your monthly investment by a chosen percentage (e.g. 10%) each year. This aligns your investments with salary increments and significantly shortens your path to financial freedom.
Are mutual fund SIP returns guaranteed?
No, mutual fund returns are subject to market risks. The standard 12% to 14% rate used in calculators is based on historical long-term averages of broad equity indexes (such as NIFTY 50 and S&P 500) over 10+ year horizons.