Aalekh
All calculators
For individualsRates reviewed September 2026

SIP Calculator for Mutual Fund Monthly Investments

A SIP calculator projects what a fixed monthly investment in a mutual fund could grow to, by treating each instalment as a separate deposit that compounds for the months remaining until you redeem. It is an annuity calculation, not a forecast: the return you type in is an assumption, and equity returns are neither fixed nor guaranteed.

SIPs suit Indian retail investors because the instalment can start at ₹500 a month and because investing on a fixed date removes the need to judge market levels. AMFI data shows monthly SIP collections in the mutual fund industry running in the tens of thousands of crores, which is why almost every fund house now offers the facility.

Use the output as a planning range rather than a promise. Run the same instalment at a conservative rate and an optimistic one, and plan around the lower figure.

SIP Calculator

₹

An assumption, not a promise. Run a cautious figure as well.

%
years

Raise the instalment by this much every year, usually in line with your salary.

%
Compare against a lump sum

Shows what the same total invested today at annual compounding would reach.

Projected corpus

₹50,45,760

15 years at 12% a year

Total invested180 instalments over 15 years
₹18,00,000
Wealth gained₹50.46 lakh in all
₹32,45,760
Gain as a share of what you put in
180.32%
Monthly instalmentunchanged for the whole term
₹10,000
Corpus if the return is only 10%₹8,66,517 less
₹41,79,243
The same total as a lump sum today₹18,00,000 compounded annually at 12%
₹98,52,418
Corpus in lakh and croreafter 15 years
₹50.46 lakh
  • Equity returns are neither fixed nor guaranteed; treat the figure as a planning range, not a forecast.
  • Shown before exit load and capital gains tax. Equity gains above ₹1,25,000 a year are taxed at 12.5% once held beyond 12 months.
  • Uses the start-of-month convention, so every instalment compounds for the full month. The end-of-month convention gives a slightly lower figure.

The formula

FV = P × ((1 + i)^n − 1) ÷ i × (1 + i)

P
The monthly SIP instalment
i
Expected monthly return, that is the annual return divided by 12 and by 100
n
Number of instalments, that is years multiplied by 12
FV
Future value, the projected corpus at the end

The trailing (1 + i) treats each instalment as invested at the start of the month; drop it if you want the end-of-month convention, which gives a slightly lower figure.

How to calculate it

  1. 1

    Fix the instalment and the horizon

    Decide the amount you can debit every month without interruption and the number of years you will hold. Stopping a SIP in a fall is the single largest cause of the projected figure not being reached.

  2. 2

    Choose a return assumption you can defend

    Use a long-run figure for the asset class rather than the fund's recent chart. Running the projection at two rates, one cautious and one optimistic, is more useful than arguing over a single number.

  3. 3

    Convert to a monthly rate and an instalment count

    A 12% annual assumption gives i = 12 ÷ 12 ÷ 100 = 0.01. Fifteen years of monthly instalments gives n = 180. The formula compounds monthly, which is the standard simplification for a monthly SIP.

  4. 4

    Apply the annuity formula

    Compute (1 + i)^n, subtract 1, divide by i, multiply by P and then by (1 + i). The result is the corpus before exit load and tax.

  5. 5

    Separate the corpus into contribution and gain

    Total invested is simply P multiplied by n. The corpus minus that figure is the gain, and only the gain is taxed. This split is what you need for the capital gains calculation on redemption.

  6. 6

    Check the realised return with XIRR, not CAGR

    Because the money went in on many dates, CAGR on the total invested is meaningless. XIRR weights each instalment by how long it stayed invested and is the correct measure of a SIP's actual return.

Value of a ₹10,000 monthly SIP, investment at the start of each month

Value of a ₹10,000 monthly SIP, investment at the start of each month
TenureTotal investedAt 10% a yearAt 12% a year
5 years₹6,00,000₹7,80,824₹8,24,864
10 years₹12,00,000₹20,65,520₹23,23,391
15 years₹18,00,000₹41,79,243₹50,45,760
20 years₹24,00,000₹76,56,969₹99,91,479
25 years₹30,00,000₹1,33,78,903₹1,89,76,351

Worked example

Monthly SIP
₹10,000
Assumed return
12% a year
Tenure
15 years, so 180 instalments
  • Monthly return i = 12 ÷ 12 ÷ 100 = 0.01
  • (1 + i)^180 = 5.9958020
  • FV = 10,000 × (5.9958020 − 1) ÷ 0.01 × 1.01
  • Total invested = 10,000 × 180 = ₹18,00,000
  • Gain = ₹50,45,760 − ₹18,00,000 = ₹32,45,760

Projected corpus = ₹50,45,760, of which ₹18,00,000 is your own money and ₹32,45,760 is the assumed gain

Frequently asked questions

Each instalment is compounded for the months it stays invested, which reduces to FV = P × ((1 + i)^n − 1) ÷ i × (1 + i) for investment at the start of every month. With P = ₹10,000, i = 0.01 and n = 180, the projected corpus is ₹50,45,760 against ₹18,00,000 invested.
At a constant assumed return a lump sum wins, because the whole amount compounds from day one. Investing ₹18,00,000 at once at 12% for 15 years projects to ₹98,52,418 against ₹50,45,760 for the same total paid in monthly. Real markets are not constant, and most salaried investors do not have the lump sum available, which is why the SIP is the practical choice.
A step-up or top-up SIP raises the instalment by a fixed percentage every year, usually in line with your salary increase. Starting at ₹10,000 and stepping up 10% a year at a 12% assumed return builds roughly ₹86,83,849 over 15 years, from about ₹38,12,698 contributed, against ₹50,45,760 from a flat ₹10,000 instalment.
A fixed rupee instalment buys more units when the NAV is low and fewer when it is high, so the average cost per unit ends up below the average NAV over the period. It removes the need to time entries but does not protect against a market that falls and stays down, so it is not a substitute for a long holding period.
Use XIRR. CAGR assumes a single investment on a single date, which is wrong for a SIP where instalments have been invested for very different lengths of time. XIRR discounts every cash flow by its own date and gives the annualised return you actually earned.
Each instalment has its own holding period and is redeemed first-in first-out. Units held more than 12 months are long term and are taxed at 12.5% on gains above ₹1,25,000 in the year under section 198 of the Income-tax Act, 2025, the successor to section 112A. Units held 12 months or less are short term and taxed at 20% under section 196, the successor to section 111A, following the rate change made by the Finance (No.2) Act 2024.
No. Growth-option units are not taxed until you redeem or switch, so a SIP left untouched compounds without an annual tax drag. A switch between schemes, including between the regular and direct plan of the same fund, counts as a redemption and does trigger capital gains.

Sources

Rates and rules on this page come from the following. This is a working aid, not professional advice: confirm anything material with your Chartered Accountant before you act on it.

Stop re-keying these figures

Aalekh runs this calculation on your actual client data, pulls the underlying ledgers straight from Tally, and carries the result through to the financial statements and the return.

Get StartedBook a demo

Related calculators