SIP Calculator
Project the future value of a monthly mutual fund SIP investment.
Inputs
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Formula
FV = P × [((1 + i)^n − 1) / i] × (1 + i)
P is the monthly investment, i is the expected monthly return (annual return ÷ 12 ÷ 100), and n is the number of months. The trailing (1 + i) accounts for each instalment being invested at the start of its month, the usual SIP convention.
Worked example
Investing ₹5,000 a month for 10 years at an assumed 12% annual return grows to roughly ₹11.6 lakh — against ₹6 lakh actually invested — which is the number people mean when they say a SIP 'doubles' their money over a decade.
Where this can give the wrong answer
- 12% (or any fixed rate) is an assumption, not a guarantee — real fund returns are lumpy, and a SIP that averages 12% can still show a loss on the day you check it.
- This doesn't account for expense ratios, exit loads, or capital gains tax on withdrawal, all of which reduce the number an investor actually receives.
- A negative expected return is accepted input, useful for stress-testing a downturn scenario, but the future value can come out below total invested.
FAQ
- It reflects that each month's instalment starts earning returns immediately rather than at the end of the month — the 'annuity due' convention most Indian mutual fund calculators use, which produces a slightly higher figure than a plain ordinary annuity.