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Mutual Fund SIP Return Calculator

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SIP Calculator
Investment Amount
₹
Expected Rate of Return
%
SIP Duration
Yr

Estimated Returns

6,00,000Invested Amount
5,20,179Estimated Returns
11,20,179Total Value
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What is SIP?

A Systematic Investment Plan (SIP) is a simple way to invest in mutual funds regularly. You invest a fixed amount every month on a chosen date, for example, ₹1,000 on the 3rd of every month for 12 years. The amount will be deducted from your account automatically through auto-pay and you will be allocated units based on the fund’s NAV for that day. 

What is a SIP Calculator and how does it work?

A Systematic Investment Plan (SIP) calculator helps you estimate the potential value of your investments over time. Simply enter your investment amount, duration, and expected returns to see your estimated future corpus.

How to use the SIP Return Calculator?

The SIP calculator has three key components: monthly investment, expected rate of return, and time period.

In the monthly investment component, you can enter the amount you are willing to invest every month. In the expected rate of return component, you can enter the returns you are expecting to receive from your investment. It is important to temper your expectations while entering an expected rate of return. While in the short term, returns may look drastically higher or lower, in the longer run they tend to be a more moderate number. In the final component, you can enter the number of years you want to continue your SIP for.

Once you enter the details, the calculator will show your total invested amount, estimated returns earned, and the final value of your investment at the end of the tenure.

How does the SIP Calculator help you?

Let’s say that you have a goal of going on a vacation in three years which would cost you roughly ₹2 lakhs. Now you have started a SIP of ₹3,000 for this expense and you expect a return of 12% CAGR. When you enter these values on the SIP calculator, it will show you that the SIP amount is insufficient, prompting you to increase your amount to ₹5,000 to reach your target. The calculator will help you plan for your goals effectively and efficiently. 

The SIP Calculator Formula

The formula for calculating your corpus from SIP is as follows:

FV = P × ({[1 + r]^n – 1} / r) × (1 + r) 

This is where:FV = Future Value of the investment.

P = Amount invested at regular intervals.

r = Periodic interest rate (annual rate divided by the number of periods per year).

n = Total number of installments (total number of times you invest).

A key mistake encountered while calculating the total corpus from a SIP is how you arrive at the periodic interest rate number. This number, which is supposed to be your monthly interest rate, is often wrongly calculated as your annual interest rate divided by 12. However, if you simply divide the interest rate by 12, you will miss the effect of compounding and see a higher return number.

What are the benefits of investing via SIP?

Simply put, SIP is a convenient method of investing in mutual funds. When you start a SIP, a fixed amount is automatically invested in your chosen fund every month on your selected date. This takes away the hard decision that people face, which is when to invest.

SIP helps inculcate discipline in your investing journey and often that is what helps build wealth in the long run. Usually, when investors try to time their entry, they end up delaying time to invest.  Through a SIP your money is invested regularly ensuring you invest during the market ups and downs. This helps you achieve rupee-cost averaging i.e. you buy more units when the market is down and fewer when the market is up bringing the average investment cost down.

Another key benefit of SIP is that you can start with a very small amount, as little as ₹100, and build wealth in the long run. You can set a SIP of a small amount and increase it as and when you are comfortable to invest more. Additionally, starting early with SIPs helps you benefit from the power of compounding.

FAQs

How to use the SIP Calculator?

Enter your monthly SIP amount, expected returns, and investment duration to see how much your investment could grow over time.

How accurate is this SIP calculator?

Our calculator uses the standard mathematical formula for compounding. However, it provides an estimate based on the rate of return you input. Actual market returns fluctuate, so the final corpus may vary as per the market.

What is the minimum amount to start an SIP in 2026?

You can start a SIP on the PhonePe app with as little as ₹100. Additionally, if you want to begin with a much smaller amount, you can explore the Daily SIP option on PhonePe, which lets you start investing with just ₹10.

Is SIP the same as mutual funds?

SIP and mutual funds are not the same. SIP is a method to invest in mutual funds. Think of it like a method to score runs used by a batsman in a cricket match; they can score runs by hitting a six, four, or even running between the wickets. SIPs are like running between the wickets: you can add small amounts consistently, which add up to a big number in the end.

How much SIP is needed to reach ₹1 Crore in 15 years?

To reach a corpus of ₹1 crore in 15 years, you will have to do a SIP of ₹22,000 at an assumed rate of return of 12%. However, if you reduce the expected rate of return to 10%, you will have to do a SIP of ₹25,000.

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