Instalments are invested at the start of each month and compound monthly. Returns are assumed constant; a real fund will not be.
Total value
₹23,23,391
- You invested
- ₹12,00,000
- Estimated returns
- ₹11,23,391
Year by year
What a SIP calculator actually tells you
A systematic investment plan buys units of a mutual fund on a fixed date every month. Because the amount is fixed and the unit price is not, you buy more units when the market is cheap and fewer when it is expensive — the averaging effect that makes SIPs the default advice for anyone investing out of a salary.
The calculator answers one question: if the fund returned a steady rate for the whole term, what would the pot be worth? That steadiness is the fiction. No equity fund returns 12% every year; it returns 30% one year and −8% the next and averages out. The figure here is a planning number, not a forecast.
The formula
FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the monthly instalment, i is the monthly rate (annual ÷ 12 ÷ 100) and n is the number of instalments.
The trailing (1 + i) is the part most calculators get quietly wrong. It assumes the instalment is invested at the start of the month rather than the end, which is what actually happens when your SIP debits on the 1st. Leave it out and a 20-year SIP is understated by about one month of growth.
Why the split matters more than the total
On a 10-year SIP at 12%, roughly half of the final value is money you paid in. On a 25-year SIP the same instalment is only about a fifth — the rest is growth. That ratio, not the headline number, is the argument for starting early, and it is why the bar under the result is drawn at all.
Common questions
It is the figure most Indian planning tools use for a diversified equity fund over a long horizon, based on long-run index returns. Over ten years or more it is defensible. Over three years it is meaningless — equity returns over short periods are dominated by which part of the cycle you happened to buy in.
Related calculators
Lumpsum
One amount, invested once, left to compound. See what it becomes and how much of that is growth rather than your own money.
Step-up SIP
A SIP that grows with your income. Raise the instalment a little every year and see what the difference compounds into over the full term.
SWP
Draw a monthly income from a corpus while the rest stays invested. See what is left each year — and whether it lasts.
CAGR
The single annual rate that would have taken you from where you started to where you ended. The fairest one-number summary of an investment's performance.