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SIP Calculator

Estimate the future maturity value of your mutual fund Systematic Investment Plan (SIP) and compare invested capital against capital gains.

Equity funds benchmark: 12% - 15%
120 Installments
Expected Maturity Wealth
11,61,695

Projected total at 12% compound growth

Total Capital Invested
6,00,000

120 monthly contributions

Estimated Wealth Gain
5,61,695

94% growth on capital

Invested CapitalEstimated Gains

Mutual Fund SIP Future Value Compounding Formula

Projects the maturity corpus of a Systematic Investment Plan (SIP) in equity mutual funds with monthly compounding.

M = P * [((1 + i)^n - 1) / i] * (1 + i) (where P = Monthly SIP, i = Monthly Return Rate, n = Total Months)

Calculation Steps

  • 1Convert expected annual return rate to monthly rate: i = Expected Return / 12 / 100.
  • 2Calculate total investment periods: n = Investment Tenure in Years * 12.
  • 3Compute geometric compound multiplier [((1 + i)^n - 1) / i] * (1 + i).
  • 4Multiply by monthly installment P to obtain estimated future maturity value.
  • 5Subtract total invested capital (P * n) to calculate estimated wealth gain.

Practical Example

Scenario: Monthly SIP of ₹5,000 for 15 years at an expected 12% annual return

Inputs: Monthly SIP: ₹5,000 | Tenure: 15 Years (180 months) | Expected Return: 12% p.a.

Calculation: Total Invested = 5,000 * 180 = ₹9,00,000 | Maturity Value = ~₹25,22,880

Result: Invested: ₹9,00,000 | Estimated Wealth Gain: ₹16,22,880 | Total Corpus: ₹25,22,880

Assumptions & Disclaimers

Key Assumptions:

  • Investments are made on the 1st of every month consistently.
  • Returns are compounded monthly at a constant rate.

Mutual fund investments are subject to market risks. Historical returns do not guarantee future returns. Equity markets experience volatility.

Frequently Asked Questions

Over long periods (10+ years), broad market Indian equity indices (Nifty 50, Sensex) have historically delivered 11% to 13% CAGR.

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