SIP, mutual fund, and lump sum
A SIP is a schedule for investing; a mutual fund is the investment product. A lump sum invests once. Neither method guarantees profit.
SIP Calculator – Calculate Mutual Fund Returns Online
Estimated SIP result
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Yearly SIP growth projection
How to use this SIP calculator
- Choose future value or the SIP required for a target corpus.
- Enter the monthly contribution or goal, return assumption, and tenure.
- Optionally add a yearly percentage or fixed step-up, inflation, and contribution timing.
- Review maturity value, total contributions, estimated gains, scenarios, charts, and the yearly projection.
The default uses an effective annual return. Each periodic rate is i = (1 + r)1/m − 1, where r is the annual return and m is contributions per year. This means a 12% effective annual assumption becomes about 0.948879% per month—not 1%.
Worked example: What will a ₹5,000 SIP be worth after 10 years?
Assume ₹5,000 is invested at the beginning of every month for 10 years at a 12% effective annual return, with no step-up, fees, taxes, or inflation adjustment.
- Monthly rate: i = (1 + 0.12)1/12 − 1 = 0.009488793, or 0.948879%.
- Instalments: n = 10 × 12 = 120.
- Annuity-due formula: FV = 5,000 × [((1 + 0.009488793)120 − 1) ÷ 0.009488793] × (1 + 0.009488793).
- Total invested: ₹5,000 × 120 = ₹6,00,000.
- Estimated maturity value: approximately ₹11,20,179; estimated gain: ₹5,20,179.
Common monthly SIP examples at 12% effective annual return
| Monthly SIP | 5 years | 10 years | 20 years |
|---|---|---|---|
| ₹1,000 | ₹81,104 | ₹2,24,036 | ₹9,19,857 |
| ₹5,000 | ₹4,05,518 | ₹11,20,179 | ₹45,99,287 |
| ₹10,000 | ₹8,11,036 | ₹22,40,359 | ₹91,98,574 |
SIP concepts without the myths
Rupee-cost averaging
A fixed rupee contribution buys more units when NAV is lower and fewer when it is higher. It can smooth the purchase price, but it does not prevent losses.
Compounding
Returns may generate later returns, so earlier deposits have more modeled growth time. Actual mutual fund returns are irregular rather than the constant path shown here.
Market volatility
Actual SIP value follows the fund’s NAV and can be below total contributions. Lower, base, and higher scenarios are planning illustrations, not a forecast range.
Methodology, limitations, and review
- Rate: effective annual by default, converted to an equivalent periodic rate; an advanced nominal-rate method is available.
- Timing: beginning of period by default; end-of-period can be selected.
- Compounding: aligned to contribution frequency. Tenure must equal a whole number of periods; values are calculated at full precision and displayed rounded to two currency decimals.
- Step-up: applied after each completed contribution year. Inflation, when enabled, discounts only the final nominal balance into today’s money.
- Excluded: fund expense ratios, fees, taxes, exit loads, cash-flow interruptions, changing returns, and market volatility.
Author: Starlight Tools Editorial Team. Calculation review: Starlight Robotics Engineering. Reviewed: 16 July 2026. Corrections: [email protected].
Investor education references: SEBI Investor: Understanding Mutual Funds and SEBI investor education material. These explain mutual funds and SIP facilities; they do not endorse this calculator or its assumptions.
Frequently Asked Questions
What does SIP mean?
SIP means Systematic Investment Plan: a way to invest a chosen amount at regular intervals. A SIP is an investing method, not a mutual fund itself.
What return rate should I enter?
Use a cautious long-term annual return assumption suitable for the asset mix, not a recent best-year return. The default method treats it as an effective annual return, similar to CAGR, and converts it to an equivalent periodic rate.
Are SIP returns guaranteed, and can they be negative?
No. Mutual fund returns depend on markets and may be below the estimate or negative, especially over shorter periods. This calculator is a projection, not a promise.
What is the difference between SIP and lump-sum investing?
A SIP spreads contributions across dates; a lump sum is invested at once. A lump sum has more market exposure immediately, while a SIP can suit recurring income and reduces dependence on one purchase date. Neither is always better.
How does rupee-cost averaging work?
A fixed contribution buys more mutual fund units when NAV is low and fewer when NAV is high. This averages purchase costs over time but cannot assure profit or protect against a falling market.
What may ₹1,000 or ₹5,000 monthly become?
At the worked example’s 12% effective annual return and beginning-of-month timing, ₹1,000 monthly for 10 years projects to about ₹2,24,036; ₹5,000 projects to about ₹11,20,179. Actual returns will differ.
How can I plan for ₹1 crore?
Choose “Calculate SIP needed for a goal,” enter ₹1,00,00,000, then set the tenure and a cautious return assumption. The result is the required starting contribution under those assumptions, not a guarantee.
How does a step-up SIP work?
A step-up raises the contribution after each completed year by either a percentage or fixed amount. The calculator applies that increase to later instalments and reports the starting and final-year SIP.
How does inflation affect the result?
Inflation does not reduce the projected investment account balance. It reduces purchasing power, so the calculator optionally divides the nominal maturity value by cumulative inflation to show an estimate in today’s money.
Are fees and taxes included?
No. The projection excludes expense ratios, transaction costs, exit loads, taxes and any product-specific charges. Use an expected return after costs if you want those costs reflected indirectly.
Is my SIP data private?
Yes. Calculations, charts, copying, and CSV creation happen in your browser; inputs are not uploaded by this page.