SIP Calculator

Manual SIP calculations are error-prone because the compound interest formula, FV = P × [(1 + r)ⁿ − 1] / r × (1 + r), requires applying a monthly rate across hundreds of compounding periods. Even a minor rounding error in the monthly rate, when compounded over 120 or 240 months, produces a meaningfully wrong final figure.

Beyond accuracy, the SIP calculator's real value lies in scenario planning. It lets you answer questions that shape your investment strategy:

• "If I increase my monthly SIP from ₹3,000 to ₹8,000, how much more corpus do I build by retirement?"
• "What annual return rate do I need to reach ₹1 crore in 15 years if I start with ₹10,000/month?"
• "If I delay starting by three years to clear a loan, how much corpus do I sacrifice?"

This instant what-if analysis builds financial clarity before you commit to an investment plan. It also forces goal-based thinking: instead of investing an arbitrary amount each month, you align your SIP with a specific target, a child's education corpus, a retirement fund, or a property down payment, and reverse-engineer the required monthly amount.

The reverse mode on this calculator makes that process explicit: enter a target corpus and it calculates the monthly investment required to reach it, turning an abstract goal into a concrete, actionable number.

Salaried professionals investing from monthly income are the core audience. A stable income and an SIP that auto-debits on salary day creates a disciplined savings habit with no active decision-making required. This calculator helps size that SIP correctly against a specific financial goal rather than investing a round number with no defined target.

Young investors aged 22–30 benefit most from this tool because it makes the cost of waiting concrete. A ₹3,000 monthly SIP started at age 22 versus age 30, with identical returns, can produce a ₹15–25 lakh difference by retirement age. Seeing that number makes starting today a tangible priority rather than vague advice.

Parents saving for children's education can use the calculator to plan for a specific corpus, for example, ₹25 lakh in 15 years for undergraduate education, and calculate the exact monthly SIP required. Since education costs in India have been growing at 8–10% p.a., factoring a higher expected return assumption for equity funds makes sense for goals that are 10+ years away.

Pre-retirees (45–55 years old) can check whether their current SIP is on track for a retirement target, and model the impact of increasing contributions in the final decade of their earning years, when income is typically at its peak and dependants' expenses are falling.

First-time investors with no prior experience can use this tool to build intuition for how compounding works, and how dramatically time affects the outcome, before choosing a mutual fund scheme or consulting an adviser. If you are also planning to invest a lump sum alongside your SIP, our GST Calculator can help you understand tax implications on purchases made from your investment returns.

The calculator produces three outputs, each serving a distinct planning purpose:

Total Corpus is the primary result, the projected value of your investment at the end of your chosen time period. This is the number to compare against your financial goal. If your target is ₹1 crore for retirement and your Total Corpus shows ₹67 lakh, you know immediately that you need to either increase your monthly SIP, extend the investment period, or target a higher-return fund category. The Total Corpus is your planning anchor.

Invested Amount is your total financial commitment, monthly investment multiplied by the number of months. It tells you the total cash outflow from your bank account over the investment period. Comparing Invested Amount to Total Corpus reveals how much of your final wealth was created by your contributions versus by returns. When the gap between the two is small, compounding has not had enough time to work. When Total Corpus is 2–3× your Invested Amount, compounding is the dominant force, typically after 12–15 years at 12% p.a.

Estimated Returns is the difference between Total Corpus and Invested Amount, the wealth your money generated beyond what you put in. When Estimated Returns exceed Invested Amount (which typically happens after 8–10 years at 12% p.a.), you have crossed the inflection point where market returns are doing more work than your monthly contributions. This is the mathematical argument for long investment horizons and for not interrupting a SIP.

As a rule of thumb: if your Estimated Returns are less than 50% of your Invested Amount, your time horizon may be too short for wealth creation. Consider extending the tenure or selecting a higher-return fund category that suits your risk profile.

1. Enter your Monthly Investment, the fixed amount you plan to invest every month via auto-debit from your savings account. Most new investors start between ₹1,000 and ₹10,000 per month. If you are unsure of the right amount, use the reverse mode: enter your target corpus to let the calculator work out the monthly investment required.

2. Set the Expected Return, your assumed annual rate of return. As a reference, large-cap equity funds in India have historically returned 10–12% p.a. over 10-year periods; mid/small-cap funds have returned 12–16% p.a. with higher volatility; debt funds typically return 6–8% p.a. The default of 12% is a reasonable mid-case assumption for a diversified equity fund. Do not set this number based on what you hope for, base it on the historical category average for the type of fund you plan to invest in.

3. Choose your Time Period, the number of years you plan to stay invested. A minimum of 5 years is recommended for equity SIPs to ride out market cycles; most goal-based plans run 10–25 years. Slide the period up and down to see how dramatically time affects the Total Corpus, this single input has the largest impact on your final wealth.

4. Read your results, compare the Total Corpus against your goal. If it falls short, increase the monthly investment or extend the time period and recalculate. The Pie chart shows the split between Invested Amount and Estimated Returns, making the contribution of compounding visually clear.

5. Plan your next step, once you have settled on an amount and horizon that matches your goal, choose a mutual fund category and scheme that targets the return rate you assumed. Consult a fund's factsheet or a SEBI-registered investment adviser to ensure the fund's risk level and track record match your plan.