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SIP Calculator.

Calculate your mutual fund SIP returns instantly. See wealth creation projections and growth charts based on your monthly investment.

Last updated: June 15, 2026
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Calculation Results

Total Value (Maturity) ₹23,23,390
Total Invested ₹12,00,000
Wealth Gained ₹11,23,390

Growth Curve

Disclaimer: This calculator provides estimates for educational purposes only. Actual rates and terms may vary based on your lender, credit profile, and market conditions.

Quick Answer

How are SIP returns calculated?

SIP returns use the future value of an annuity formula. A ₹10,000 monthly SIP at 12% expected return over 10 years will grow to approximately ₹23.23 Lakhs, with your total investment being ₹12 Lakhs and wealth gained being ₹11.23 Lakhs.

Formula
M = P × ([(1+r)^n - 1] / r) × (1+r) Where: P = Monthly investment | r = Expected monthly rate (Annual÷12÷100) | n = Total months
Example
P=₹10,000 | r=12/12/100=0.01 | n=120 M = 10000 × ([(1.01)^120 - 1] / 0.01) × 1.01 M = ₹23,23,390
Last updated: June 15, 2026

The Magic of Compounding

By investing just ₹10,000 per month at an expected return rate of 12%, you'll accumulate ₹23.23 Lakhs over 10 years.

Notice the curve in the chart above. In the early years, the growth is mostly linear from your own deposits. But as time goes on, the returns begin generating their own returns. This exponential growth is why starting early is crucial in SIP investments.

SIP Maturity (Future Value of Annuity)

SIP investments are calculated using the standard future value of an annuity formula at the beginning of each period:

M = P × ([(1 + r)^n - 1] / r) × (1 + r)
  • M = Maturity amount
  • P = Regular monthly investment
  • r = Expected monthly return rate (Annual Rate / 12 / 100)
  • n = Number of monthly installments (Years × 12)

This formula assumes consistent monthly investments and compounding of returns at the expected rate.

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Common mistakes when planning SIPs.

Mistake: Assuming 12-15% guaranteed returns
Correct: Mutual fund returns vary heavily; use 10-12% for realistic long-term planning
Impact: Falling significantly short of retirement goals due to aggressive estimates
Mistake: Stopping SIPs during market crashes
Correct: Continue investing; you buy more units when prices are low (rupee cost averaging)
Impact: Missing out on the best accumulation phases and hurting long-term CAGR
Mistake: Ignoring inflation over 10-20 years
Correct: Target a corpus 2-3x larger than what seems adequate today to account for 6% inflation
Impact: Having a ₹1 Crore corpus that only has the purchasing power of ₹30 Lakhs today
What is a SIP?

SIP stands for Systematic Investment Plan. It's a method of investing a fixed sum regularly in a mutual fund scheme, promoting discipline and averaging out market volatility.

Are SIP returns guaranteed?

No, mutual fund SIP returns are linked to market performance and are not guaranteed. The expected return is just an estimate based on historical data.

Can I stop or pause my SIP?

Yes, you can pause or stop your SIP at any time without penalty, though it's recommended to continue through market cycles to maximize wealth creation.

Further reading.

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