This SIP Calculator estimates how a series of regular monthly investments could grow over a selected period at an assumed annual rate of return. It separates the total amount invested from the estimated gain and lets you choose whether each contribution is made at the beginning or end of the month.
How to use the SIP Calculator
- Enter the monthly investment amount in rupees.
- Enter an assumed annual rate of return as a percentage.
- Enter the investment period in years.
- Choose whether contributions are made at the beginning or end of each month.
- Select Calculate to see the estimated future value, amount invested and estimated gain.
How the SIP estimate is calculated
The calculator converts the annual percentage assumption into a monthly rate by dividing it by 12. For end-of-month contributions, the future-value formula is:
FV = P × [((1 + i)n − 1) ÷ i]
Here, P is the monthly contribution, i is the assumed monthly rate and n is the number of monthly contributions. For beginning-of-month contributions, the result is multiplied by (1 + i), because each contribution receives one additional month of assumed growth. When the assumed return is zero, the future value is simply the monthly contribution multiplied by the number of contributions. The period is converted to a whole number of monthly contributions.
Illustrative example
Investing ₹5,000 per month for 10 years at an assumed 12% annual rate, converted to 1% per month, produces an illustrative future value of approximately ₹11.50 lakh with end-of-month contributions. Total contributions are ₹6 lakh; the remainder is the estimated gain. Choosing beginning-of-month contributions produces a slightly higher illustration because each instalment is assumed to be invested one month earlier.
Important risks and limitations
Mutual fund returns are market-linked and not guaranteed. Real returns vary over time, and the calculator does not model volatility, taxes, exit loads, expense ratios, missed instalments, changing contributions or inflation. The annual-rate-to-monthly-rate conversion is a simplifying assumption, not a forecast.
Frequently asked questions
Is the estimated return guaranteed?
No. The return is an input assumption only. Mutual fund investments are subject to market risk.
Does SIP mean a guaranteed monthly profit?
No. SIP is a method of investing a fixed amount regularly; it does not guarantee returns or protect against market losses.
Why does contribution timing matter?
A contribution made at the beginning of a month has one additional month to grow compared with a contribution made at the end. Select the timing convention that best matches the schedule you want to illustrate.
Financial disclaimer: This calculator is educational and does not constitute investment advice, a recommendation or a promise of returns. Consider your goals and risk tolerance and consult a qualified financial adviser if needed.