What will your monthly SIP become?

How the SIP calculator works

A SIP invests a fixed amount every month. Each instalment earns returns and those returns earn further returns — this compounding is what builds the corpus. The calculator uses the standard future-value-of-an-annuity formula with monthly compounding:

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

where P is your monthly amount, i is the monthly rate (annual return ÷ 12), and n is the number of months.

A few things to remember

• Returns aren't guaranteed. Equity funds are volatile year to year; the long-term average is what matters.
• Stay invested. Most of the corpus comes from the final few years thanks to compounding.
• Step it up. Increasing your SIP as your income grows dramatically changes the outcome — try the step-up SIP calculator.

Related calculators

• Lumpsum calculator — for a one-time investment.
• Goal SIP calculator — work backwards from a target.
• SWP calculator — plan withdrawals from your corpus.