SIP Calculator
Project potential returns and maturity wealth from Systematic Investment Plans (SIP) in mutual funds.
About the SIP Calculator
The CalcNest SIP Calculator empowers you to simulate how small, disciplined monthly mutual fund investments can grow into substantial wealth over the long term. By taking advantage of compounding returns, even modest sums invested regularly can help fulfill life goals like retirement, education, or buying a home.
Mathematical Formula
FV = P × [((1 + r)^n - 1) / r] × (1 + r) Where P is the monthly investment amount, r is the periodic expected return rate (annual rate / 12 / 100), and n is the total number of monthly contributions.
Variables & Components
Worked Example: ₹5,000 Monthly SIP for 10 Years at 12% Expected Return
Investing ₹5,000 every month into an equity mutual fund delivering an average 12% annual compounding return over 10 years.
Step-by-Step Calculation
- Monthly Periodic Rate: r = 12 / (12 × 100) = 0.01
- Total contributions: 10 years × 12 months = 120 instalments
- Total Principal Invested: 120 × ₹5,000 = ₹6,00,000
- Compound Multiplier: [((1 + 0.01)^120 - 1) / 0.01] × (1 + 0.01) = 232.339
- Maturity Corpus: ₹5,000 × 232.339 = ₹11,61,695
- Estimated Wealth Gain: ₹11,61,695 - ₹6,00,000 = ₹5,61,695 (1.94x wealth multiplier)
How to Use This Calculator
Enter the amount you wish to invest systematically each month.
Set your realistic expected annual rate of return (historically 10%–14% for diversified equity funds).
Select your investment horizon in years.
Review the projected total maturity corpus and wealth multiplier instantly.