How this calculator works
A SIP calculator projects the future value of a fixed monthly investment, compounded at an assumed annual return. The formula behind it:
FV = P × [((1 + i)n − 1) / i] × (1 + i)
Where P is your monthly investment, i is the monthly return rate (annual rate ÷ 12), and n is the total number of months. Each month's contribution compounds for a different length of time, which is why the total grows faster than simply multiplying the monthly amount by the number of months.
FAQs
Is 12% a realistic return to assume?
It's a reasonable long-term historical average for Nifty 50 index funds over 15-20+ year periods, but actual year-to-year returns are volatile — treat it as a planning estimate, not a guarantee.
Can I change my SIP amount later?
Yes — SIPs can be increased, decreased, paused, or stopped at any time with no penalty. Use the Step-Up SIP Calculator if you want to model a yearly increase specifically.
What's the difference between this and a lumpsum investment?
A SIP spreads your investment across many months (and benefits from rupee cost averaging); a lumpsum invests everything at once. See the Lumpsum Calculator to compare.