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SIP Calculator
📈 SIP Calculator
Project how a monthly SIP (Systematic Investment Plan) into mutual funds could grow over time, or compare it against investing the same total as a one-time lump sum.
How the projection is calculated
SIP: M = P × [((1+r)ⁿ − 1) / r] × (1+r)
Lump Sum: M = P × (1+r)ⁿ
The SIP formula compounds each monthly installment for the remaining months it stays invested, so a contribution made in year one compounds for longer than one made in year fourteen. This is why the later years of a long SIP tend to add far more to the corpus than the early years — most of the growth happens in compounding time, not contribution size.
Where SIP returns typically land
| Investment | Typical Long-Term Return | Risk |
|---|
| Fixed Deposit | 7% – 7.5% | Low |
| Debt Mutual Fund | 7% – 8% | Low |
| Equity Mutual Fund | 12% – 15% | High |
| ELSS | 12% – 14% | High |
These are historical long-term averages, not guaranteed forward returns — equity SIPs in particular can see multi-year stretches well below (or above) these figures, which is the trade-off for their higher long-run average.
Frequently Asked Questions
Is a 12% return realistic to assume?
12% is roughly the long-term historical average for diversified equity mutual funds in India over multi-decade periods, but no return is guaranteed — actual results vary by fund, time period, and market cycle. Treat the result as a planning estimate, not a promise.
Why does the maturity value look much bigger than what I invested?
Compounding. Each month's contribution earns returns, and those returns then earn further returns. Over 15–20 years, the gap between total invested and total invested-plus-growth widens dramatically, especially in the final few years.
Should I choose SIP or lump sum?
SIP suits investors without a large sum upfront and helps average out purchase price across market ups and downs (rupee-cost averaging). A lump sum can outperform if invested right before a sustained market rise, but carries more timing risk.
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