SIP Calculator – Estimate Mutual Fund SIP Returns & Maturity Corpus

SIP Calculator – Estimate Mutual Fund SIP Returns & Maturity Corpus

A Systematic Investment Plan (SIP) is a disciplined approach to building long-term wealth by investing a fixed sum of money at regular monthly intervals into mutual funds. Rather than trying to time market highs and lows with a single large deposit, an SIP automates your savings and spreads your purchases across market cycles — buying more fund units when prices are low and fewer when prices are high, a concept known as rupee/dollar-cost averaging.

This calculator computes your Expected Maturity Amount, Invested Amount, Estimated Returns Earned, and Wealth Gain % based on your monthly contribution, expected annual return rate, and investment tenure.

The SIP Compounding Formula

The calculator projects your maturity corpus using the annuity-due future value formula, which assumes each monthly contribution is deposited at the start of the month and compounds for that full month:

M = P × ≤ft[ ((1 + i)^n - 1 / i) ] × (1 + i)

Where:

• M: Projected maturity amount (future value of the investment).
• P: Monthly investment amount.
• i: Periodic monthly return rate, found by dividing the annual rate by 12 and by 100: i = dfracr12 × 100
• n: Total number of monthly installments (tenure in years × 12).

Total invested principal is simply P × n, and estimated returns are the maturity amount minus that invested total.

Worked Example

Take a monthly investment of $5,000 over 10 years (120 months) at an assumed annual return rate of 12%:

1. Monthly rate: i = 12 ÷ 12 ÷ 100 = 0.01
2. Total months: n = 10 × 12 = 120
3. Maturity amount: M = 5,000 × ≤ft[dfrac(1.01)^120 - 10.01] × 1.01 ≈1{,}161{,}695.38$
4. Total invested: 5,000 × 120 =600{,}000.00$
5. Estimated returns: 1{,}161{,}695.38 - \600,000.00 =561{,}695.38$
6. Wealth Gain %: (561,695.38 ÷ 1,161,695.38) × 100 ≈ 48.3%

Return Sensitivity (10-Year, $5,000 Monthly SIP)

A modest change in the assumed return rate compounds into a large difference in the final corpus over a 10-year horizon — this is why the rate you assume matters so much for long-term projections.

SIP vs. Lump-Sum Investing

A SIP spreads your capital across many purchase dates, buying more fund units when the price (NAV) is low and fewer when it's high — which softens the impact of short-term market swings and removes the pressure of trying to time a single entry point. A lump-sum investment instead puts all your capital to work on day one: it can outperform a SIP when markets trend steadily upward from that starting point, but it also carries more exposure if the market drops shortly after you invest. Neither approach is universally better — the right choice depends on your risk tolerance, how much capital you have available at once, and your read on where markets are headed.

What This Calculator Does Not Include

To model the impact of inflation on future purchasing power, try the Inflation Calculator, or compare this recurring-investment approach against a single upfront deposit with the Lumpsum Calculator.