| Year | Invested this year | Total invested | Returns earned | Total corpus |
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What is a SIP and how does it work?
A SIP (Systematic Investment Plan) lets you invest a fixed amount in a mutual fund every month automatically. Each month, you buy units of the fund at the prevailing NAV. Over time, you accumulate more units — and benefit from rupee cost averaging, which reduces the impact of market volatility. Compounding then multiplies your wealth as returns generate further returns.
Is 12% return realistic for SIP?
The Indian equity market (Nifty 50) has historically delivered 13–15% CAGR over 10+ year periods. Diversified large-cap funds have averaged 11–13% over the last decade. 12% is a commonly used benchmark but is not guaranteed — actual returns depend on market conditions and fund selection. For conservative planning, use 10–11%; for equity-heavy portfolios, 12–14% may be realistic over long tenures.
What is rupee cost averaging in SIP?
Rupee cost averaging means you automatically buy more units when the market is low (low NAV = more units) and fewer units when the market is high. Over time, this averages out your purchase cost — you don't need to time the market. This is the key advantage of SIPs over lump sum investments in volatile markets.
Can I stop or pause my SIP?
Yes. Most mutual fund houses allow you to pause your SIP for 1–3 months without penalty, or stop it entirely at any time. However, your invested units continue to remain in the fund and keep earning returns. Stopping the SIP just means no new units are purchased. You can restart anytime.
About this SIP calculator
This free SIP calculator helps you estimate the future value of your monthly mutual fund investments using the compound interest formula. Enter your monthly SIP amount, expected annual return, and investment period to instantly see your estimated corpus, total amount invested, and wealth gain (returns earned).
The calculator uses the standard SIP formula: FV = P × [((1 + r)^n – 1) / r] × (1 + r), where P is monthly investment, r is monthly return rate (annual rate ÷ 12 ÷ 100), and n is total number of months. A year-by-year breakdown shows exactly how your investment grows over time.
Note: Returns shown are estimates based on the rate you enter. Mutual fund returns are subject to market risk and are not guaranteed. Past performance is not indicative of future returns. Please consult a financial advisor before investing.
How to use this calculator
- Enter your planned monthly SIP amount
- Set the expected annual return — use 10–12% for equity funds as a conservative estimate
- Set your investment period — longer = significantly more corpus due to compounding
- Review the yearly breakdown to see when returns overtake your invested amount