A SIP Calculator projects the future value of monthly mutual-fund investments. It applies the standard formula to the values you enter and returns the result instantly, without sending any data to a server. Investors use it to plan long-term wealth-creation goals.
Interactive calculator
SIP future value
Monthly SIP compounded at the assumed annual return, with optional yearly step-up.
Future value-
Total invested-
Wealth gained-
Effective return multiple-
How is this calculated?
FV of monthly SIP = SIP × [((1+r/12)^n - 1) / (r/12)] × (1+r/12) where r is annual rate, n is total months. Step-up rolls the previous-year balance forward and starts a new annuity each year at the higher SIP. Source: Standard time-value-of-money formulas, NISM Investment Adviser Module.
SIP Calculator
Estimate the future value of your monthly Systematic Investment Plan.
About this tool
A SIP Calculator projects how much your monthly mutual fund investment (Systematic Investment Plan) will grow to over time. It uses compound growth: each contribution earns returns, and those returns earn returns.
SIP is the most popular way Indians invest in equity mutual funds, with over ₹25,000 crore flowing in monthly as of 2025. Even small monthly amounts (₹500-5,000) compound dramatically over 10-20 years.
How it works
Enter your Monthly Investment - the SIP amount you'll contribute every month.
Enter expected annual return. Use 12% for diversified equity, 8% for debt, 10% for hybrid.
Enter tenure in years. SIPs work best when held 7+ years to ride out volatility.
The calculator shows the future value, total invested, returns generated, and a year-by-year growth table.
Formula
FV = P × [((1 + r)^n - 1) / r] × (1 + r) where P = monthly SIP, r = monthly rate (annual / 12 / 100), n = total months
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The math of compound growth
Compounding is the engine of every long-term investment plan. The formula for monthly contributions:
FV = PMT x ((1+r)^n - 1) / r
where PMT = monthly contribution, r = monthly return rate, n = months. With a one-time lump sum P at the start: FV += P x (1+r)^n.
Why starting early matters more than contributing more
Saving $500/month from age 25 to 65 (40 years) at 8% reaches ~$1.75M. Same $500/month starting at 35 reaches only ~$745K. The 10 extra years more than DOUBLES the final balance - that's the difference between compounding for 30 vs 40 years.
The first $100K is the hardest
Charlie Munger's observation: getting to $100K is brutal because you depend on contributions, not returns. After $100K, returns start to do more work than your savings. After $1M, your annual return often exceeds your annual contribution.
Asset allocation > stock picking: 90%+ of long-term return variance comes from your stocks/bonds/cash split, not from which specific stocks. Low-cost index funds beat 80%+ of active managers over 10+ years.
Costs compound too: a 1% annual fund fee compounds to ~25% of total return over 30 years. Prefer index funds with TER under 0.20%.
Time in market beats timing: missing the 10 best days in the market drops a 30-year return from ~9% annualized to ~5%. Those days cluster near crashes - selling in fear locks in losses.
Inflation eats nominal returns: 7% nominal return at 3% inflation is 4% real return. "Safe" cash at 1% loses ~2% real per year. Real returns matter.
Glide path: how allocation should change with age
The classic rule "100 minus your age in stocks" is too conservative for modern lifespans. Updated guidance:
Age
Equity %
Bonds %
Cash %
25-35
90-100%
0-10%
0%
35-45
80-90%
10-20%
0%
45-55
70-80%
15-25%
5%
55-65
55-70%
25-35%
5-10%
65+ (retired)
40-60%
30-50%
10%
If you retire at 65 and live to 90, your retirement portfolio still has 25-year horizon. Too conservative an allocation runs out of money. Too aggressive risks sequence-of-returns disasters early in retirement.
Historical CAGR for Indian equity mutual funds is 11-13% over 15+ year periods. Conservative: 10%. Aggressive: 14%. The calculator default is 12% which is a reasonable assumption for diversified equity SIPs.
Is SIP guaranteed to give returns?
No. SIPs invest in mutual funds whose value fluctuates with markets. The 'guarantee' is in the discipline - rupee-cost averaging buys more units when prices fall and fewer when they rise. Over 10+ year periods, equity SIPs have historically delivered positive real returns.
What is rupee cost averaging?
Since you invest a fixed amount monthly, you buy more units when NAV is low and fewer when high. This averages out your cost per unit and reduces the impact of market timing.
Can I change or stop my SIP?
Yes, SIPs can be paused, increased (step-up), decreased, or stopped anytime via your AMC or platform. There's no penalty for stopping a SIP - only ELSS SIPs have a 3-year lock-in per installment.
How much do I need to retire?
The 4% rule: you can withdraw ~4% of your portfolio annually with high confidence of lasting 30+ years. So if you need $50K/year, target $1.25M. The rule was developed for 30-year retirements in the US - for 40+ years (early retirement) use 3-3.5%.
Is the stock market too risky for me?
Over 1-year periods: very volatile, ~30% historical loss possible. Over 10-year periods: 95% positive historically. Over 30-year periods: 100% positive in any rolling US window. Risk depends on time horizon, not the asset class itself.
Should I pay off the mortgage or invest?
Compare your mortgage rate to expected investment return. If mortgage rate is below 5% and your retirement contributions are maxed, investing usually wins long term. Above 7%, the guaranteed return from paying off the mortgage often wins.
How much should I save each month?
Rough target: 15-20% of gross income toward retirement, starting at 25. If you start at 35, you need 25-30%. At 45, 40%+. Saving rate matters more than investment selection for the first 10-15 years.
What's the safest investment?
Short-term government bonds in your home currency. Inflation-linked bonds (TIPS US, ILBI India, index-linked gilts UK) protect against inflation. Bank savings accounts up to insured limits ($250K US FDIC, £85K UK FSCS) are also safe but lose to inflation.
How accurate is the SIP Calculator?
It applies the standard formula. Accuracy is limited only by your input precision. For decisions with material consequences (taxes, medical, legal, structural), use the result as a starting point and verify with a qualified professional in the relevant field.
Is the SIP Calculator free to use?
Yes. 100% free, no signup, no payment, no API key. The site is funded by display ads around the tool but not inside the calculation flow.
Are my inputs saved anywhere?
No. All inputs stay in your browser tab. Closing the tab discards them. The site uses Google Analytics for traffic measurement (anonymized) but the analytics never see what you type into the form.
Can I use the SIP Calculator on my phone?
Yes. The tool is responsive and tested on iOS Safari, Android Chrome, and major desktop browsers. Touch targets meet Apple's 44pt and Google's 48dp minimum.
Does the SIP Calculator work offline?
Yes. Once the page has loaded, it works without internet. The calculation runs in JavaScript on your device.
How do I report a bug or suggest improvement to the SIP Calculator?
Email hi@3tej.com with the URL of this page and a description of what you saw vs expected. We typically respond within 72 hours.
Can I share results from the SIP Calculator?
Take a screenshot or copy the output. The page doesn't generate shareable URLs for specific calculations - inputs stay in your browser only.
Why are the results different from another sip tool?
Most likely: different formula assumptions, different default values, different rounding rules, or different applicable rates. Check the methodology if both tools document it. Both can be valid for different scenarios.
IT
India Tools Editorial
Calculators & explainers maintained by the India Tools team. Updated for FY 2025-26.
