How to use this SIP calculator
A Systematic Investment Plan turns small, regular contributions into a disciplined wealth-building habit, and its real power lies in compounding over long horizons rather than any single year's return. The earlier and longer you invest, the more dramatic the effect.
This calculator projects the future value of your monthly SIP using a constant expected return, separating the money you invest from the growth it generates so you can see how compounding does the heavy lifting.
How SIP growth is projected
The calculator treats your monthly contribution as a series of investments, each compounding at an effective monthly rate derived from the annual return you enter.
The output separates total invested from estimated gains, which is the clearest way to appreciate how much of a long-term corpus comes from returns rather than your own deposits.
Rupee-cost averaging
Because you invest a fixed amount every month, you automatically buy more units when markets are low and fewer when they are high, smoothing your average purchase price.
This removes the pressure of timing the market and is why SIPs suit volatile equity funds well.
What the projection ignores
Real markets do not deliver a fixed annual return; they fluctuate, and your actual corpus could be higher or lower. The model also excludes expense ratios, exit loads and capital-gains tax.
Equity fund gains above the annual exemption are taxed as long-term capital gains, which will reduce the in-hand maturity value.
Using the estimate
Test conservative, moderate and optimistic return assumptions rather than relying on one figure, and revisit the plan as your income and goals change.
Increasing your SIP each year (a step-up) typically grows the corpus far more than chasing a higher return.