SIP Calculator
Project the future value of your monthly investments.
Monthly Investment
Expected Return Rate (p.a)
Time Period (Years)
Total Value
₹11,61,695
Total Value
₹11,61,695
Invested Amount
₹6,00,000
Estimated Returns
₹5,61,695
Total Value
₹11,61,695
How this calculator works
A SIP (Systematic Investment Plan) compounds each monthly instalment at your expected return rate for however many months remain until your goal, so early instalments have more time to grow than later ones — this is why the future value formula weights each contribution by its own compounding period rather than treating the total as a single lump sum.
Worked example
Investing ₹10,000 a month for 15 years at an assumed 12% annual return grows to roughly ₹50.5 lakh — of which only ₹18 lakh is money you actually put in; the remaining ₹32.5 lakh is projected growth. That gap between invested amount and total value is compounding doing the work, and it widens dramatically the longer the SIP runs.
Why starting early matters more than investing more
Because each instalment compounds for a different length of time, money invested in year one has far longer to grow than money invested in year fourteen. Two people investing the same monthly amount, one starting 10 years earlier than the other, can end up with a dramatically larger total from the early starter — often larger than what the late starter could catch up to even by investing significantly more per month. Time in the market is the single biggest lever in this formula.
SIP vs. lumpsum
Lumpsum mode compounds one upfront amount for the full period using standard compound interest, while SIP spreads the same money across monthly instalments. SIPs average your purchase price across market ups and downs (sometimes called rupee-cost averaging) and reduce the risk of investing everything right before a downturn, while a lumpsum can outperform if invested right before a sustained rally — the trade-off is really about managing timing risk, not which method is inherently "better."
A word on the assumed return rate
Every projection here depends entirely on the annual return rate you enter — it's an assumption, not a guarantee. Market-linked investments fluctuate, and actual returns over any specific 10-20 year period can run meaningfully above or below whatever average you assume. If you're working backward from a target amount instead, the Goal-Based SIP Calculator finds the monthly investment needed to reach it.
Frequently Asked Questions
How does SIP compounding work?
A Systematic Investment Plan invests a fixed amount at regular intervals (usually monthly), and each instalment compounds independently from the date it's invested — so this calculator projects future value using the standard SIP future-value formula based on your monthly amount, expected annual return, and duration.
Is the projected return guaranteed?
No — this is a projection based on the expected annual return rate you enter, not a guarantee. Actual market-linked returns fluctuate and can be lower (or higher) than any assumed rate.
Does SIP amount or duration matter more for the final value?
Duration typically has a larger compounding effect than monthly amount over long horizons, since more time means more compounding cycles — starting earlier with a smaller amount often outperforms starting later with a larger one.
What is rupee-cost averaging?
It's the effect of investing a fixed amount at regular intervals regardless of market price — you automatically buy more units when prices are low and fewer when prices are high, which averages out your purchase cost over time and reduces the risk of investing everything right before a downturn.
Should I choose SIP or a lumpsum investment?
It depends on timing risk, not which is inherently better. A lumpsum can outperform if invested right before a sustained rally, but risks a large loss if invested right before a downturn. SIP spreads that risk out, which suits steady monthly income better than a large one-time amount.
This tool provides general estimates for informational purposes only and isn't financial or tax advice. Consult a qualified financial advisor or tax professional before making financial decisions.