M = P ×× (1 + i)
(1 + i)ⁿ - 1
i
Where: M = Maturity Amount, P = Periodic Investment, i = Monthly Rate, n = Number of Payments
Calculate your mutual fund SIP returns and plan your investments systematically
Investment Details
₹
₹500₹50,000
1%30%
1 Year40 Years
Investment Summary
Total Investment₹0
Estimated Returns₹0
Total Value₹0
Investment Insights
Total Investment
₹60,000
Final Value
₹6,00,000
Total Growth
₹5,40,000
How do SIP calculators work?
A SIP plan calculator works on the following formula –
SIP Maturity Formula
Monthly Rate Conversion
Monthly Rate =
(1 + Annual Rate)¹/¹²
- 1
This converts annual returns to monthly compounding rates
MMaturity Amount
The total amount you receive upon maturity, including your investments and returns
PPeriodic Investment
The fixed amount you invest at regular intervals (monthly/quarterly)
nNumber of Payments
Total number of investment installments you make over the period
iMonthly Rate
Monthly rate of interest (converted from annual rate of interest)
Example Calculation
Take for example you want to invest ₹1,000 per month for 12 months at a periodic rate of interest of 12%. Now, to calculate the SIP maturity amount, we need the monthly rate of return (i).
Correct Method
The right way is to convert the annual return into a monthly return by using the following formula:
Monthly Return = (1 + Annual Return)(1/12) - 1
So, for an annual return of 12%, the effective monthly return comes to about 0.95%, not 1%.
This is because if you compound 0.95% for 12 months, it gives back 12% annually. But if you assume 1% monthly, the compounded annual return becomes more than 12%, thus giving an inflated result.
Calculation:
i = (1 + 0.12)(1/12) - 1 = 0.0095 or 0.95%
M = 1,000 × [ ( [1 + 0.0095]12 - 1 ) / 0.0095 ] × (1 + 0.0095)
Result: ₹12,766 approximately in a year
Important Note
Please note that the rate of interest on a SIP will differ as per market conditions. It may increase or decrease, which will change the estimated returns.
How to use our systematic investment plan calculator?
You can use the SIP amount calculator within a few clicks.
1
Enter the monthly invested amount (the amount for which you have started the SIP)
2
Set the number of years for which you want to stay invested
3
Choose the expected rate of return
4
The calculator will show you the estimated amount you can avail after your investment tenure is complete
Advantages of using our systematic investment plan calculator
Plan Your Investment
Plan your investment based on the amount and tenure that suits your financial goals.
Accurate Estimations
Compute an estimation of the total value of investments at the end of your SIP tenure.
Save Time
Shows accurate results and helps you save time required during manual calculations.
Portfolio Optimization
Ensures that your savings portfolio is as per your requirements and financial needs.
Interactive Formula Breakdown
Understand how SIP calculations work step by step
Step 1: Monthly Rate Conversion
Monthly Rate = (1 + Annual Rate)¹/¹² - 1
Convert annual returns to monthly compounding rates
Example
For 12% annual return: (1 + 0.12)¹/¹² - 1 = 0.95% monthly
About SIP Calculator
What is SIP?
Systematic Investment Plan (SIP) is a method of investing in mutual funds where you invest a fixed amount regularly (monthly/quarterly) instead of investing a lump sum. This helps average out market volatility and build wealth through disciplined investing.
Benefits of SIP
- • Rupee cost averaging reduces market volatility impact
- • Power of compounding grows your wealth over time
- • Disciplined investing builds long-term wealth
- • Flexible investment amounts and tenure