SIP Calculator: How It Works, Formula and a Worked Example
Project the future value of a monthly Systematic Investment Plan. Here is the formula, a worked example, the mistakes to avoid, and a free calculator with a downloadable PDF report.
Abhishek sharma
17 Sep 20264 min read
There is a moment in every financial decision where you stop reading and start calculating. Project the future value of a monthly Systematic Investment Plan. This guide is written for that moment. Plain language, one worked example, and a calculator you can open in the next line if you would rather skip straight to your own figures.
Image placeholder ā add a screenshot or illustration for this article here.
A SIP invests a fixed amount every month into a mutual fund. Because you buy more units when prices are low and fewer when high (rupee-cost averaging), your average cost smooths out over time.
The formula behind it:
FV = P Ć [((1 + r)^n ā 1) / r] Ć (1 + r)
Symbol
What it means
FV
Future value at maturity
P
Monthly investment amount
r
Monthly rate = annual rate Ć· 12 Ć· 100
n
Total number of months (years Ć 12)
Nothing is rounded away quietly and nothing is assumed on your behalf. If a figure appears in the result, it came from something you entered.
An example, start to finish
ā¹5,000/month for 20 years at 12% annual return ā invested ā¹12,00,000, projected value ~ā¹50 lakh.
Change any one input and watch the result move ā that sensitivity is the real lesson. It is far more useful than memorising a single outcome, because your own rate, tenure or contribution will never match the example exactly.
Enter your figures. Use the ones on your statement, sanction letter or scheme document rather than a remembered number.
Read the result card ā the headline figure plus the breakdown that produced it.
Adjust one input at a time to see what genuinely moves the outcome.
Tap Download PDF to keep a copy of the calculation, with your inputs and assumptions printed on it.
The PDF takes a few seconds to build because it is a properly typeset report, not a screenshot. You will see a progress message while it is being prepared, and the download starts on its own.
What experienced users do differently
Start early to maximize compounding.
Step-up your SIP as your income increases.
Mistakes we see again and again
Stopping SIPs during market downturns.
If you want to go a level deeper afterwards, read up on rupee cost averaging and xirr vs cagr. Both come up the moment you start comparing options seriously.
Interactive calculator
Try the SIP Calculator
Enter your own figures below. The same calculator and PDF report remain available on the focused calculator page.
For FY 2026-27 Ā· India
The fixed amount you invest every month.
Your own assumption, not a promised or guaranteed return.
How many years you plan to keep investing.
Quick examples
Estimated maturity valueā¹23,23,391
Investing ā¹10,000/month for 10 years at an assumed 12% annual return.
Total invested by year endProjected value at year end
What you are seeing: Your invested amount grows in a straight line to ā¹12,00,000, while the projected value curves upward to ā¹23,23,391 as returns compound.
Total investedā¹12,00,000
Estimated returnsā¹11,23,391
Maturity valueā¹23,23,391
Returns share of value48.4%
Wealth gain multiple1.94Ć
What each result means
Total invested
What it is: Every monthly instalment added together.
Your value: ā¹12,00,000
Money that came from your pocket, before growth.
Estimated returns
What it is: Projected growth on top of what you invested, at your assumed return.
Your value: ā¹11,23,391
The growth part ā not guaranteed.
Maturity value
What it is: Total invested plus estimated returns at the end of the period.
Your value: ā¹23,23,391
The headline projection.
Returns share of value
What it is: What portion of the final value is growth rather than your own money.
Your value: 48.4%
This share rises the longer you stay invested.
Wealth gain multiple
What it is: Maturity value divided by total invested.
Your value: 1.94Ć
2Ć means your money doubled under your assumption.
Year-by-year breakdown
SIP Calculator year-by-year schedule
Year
Invested this year (ā¹)
Total invested (ā¹)
Estimated returns (ā¹)
Value at year end (ā¹)
1
ā¹1,20,000
ā¹1,20,000
ā¹8,093
ā¹1,28,093
2
ā¹1,20,000
ā¹2,40,000
ā¹32,432
ā¹2,72,432
3
ā¹1,20,000
ā¹3,60,000
ā¹75,076
ā¹4,35,076
How to read this: each row is one year. The value column shows what your SIP could be worth at the end of that year if growth matched your assumed return. The highlighted row is your final year.
Showing the first 3 of 10 years. Want charts, formulas and the full schedule? Get the detailed PDF.
What this calculator does
A Systematic Investment Plan (SIP) invests the same amount every month. This calculator grows each monthly instalment at your assumed annual return, compounded monthly, and shows the corpus you could build by the end of your chosen period.
What your result means
The maturity value is a projection based on your own numbers, not a promised outcome. A higher monthly amount, a higher assumed return or a longer duration all raise it. Because later years compound on a larger base, the final few years usually add the most growth.
Formula
1. Future value of a monthly SIP
FV = P Ć [((1 + i)āæ ā 1) Ć· i] Ć (1 + i)
Symbols
FV
Maturity value (ā¹)
P
Monthly SIP (ā¹)
i
Monthly return = annual return Ć· 12 (decimal)
n
Number of monthly instalments = years Ć 12
Why this formula works
Each instalment compounds for the months left until maturity. Adding them gives a geometric series whose sum is the bracketed term; the extra Ć (1 + i) reflects investing at the start of each month.
Unit check
ā¹ = ā¹ Ć (no unit) ā the bracket and (1 + i) are pure ratios. ā
Worked example
P = ā¹10,000, 12% ā i = 0.01, 10 years ā n = 120: FV = 10,000 Ć [((1.01)Ā¹Ā²ā° ā 1) Ć· 0.01] Ć 1.01 ā ā¹23,23,391.
Common mistakes
Using the annual rate instead of the monthly rate. Using years instead of months for n. Leaving out Ć (1 + i).
Compounding works on the balance you already have. By the later years the balance is large, so the same percentage return adds far more rupees than in the early years.
Is the expected return guaranteed?
No. The return you enter is your own assumption, not a promise. Market-linked returns go up and down, and actual results will differ from this projection.
How often are the figures on this page updated?
The formulas don't change. The FY label and sources are checked on the review date shown below. This calculator does not use tax-specific limits.
When should I talk to a professional instead of relying on this calculator?
Before a real investment decision, especially a large or long-term one, consult a SEBI-registered investment adviser. This calculator is for educational planning only and does not consider taxes, costs or your risk profile.
Symbols and assumptions
P
Monthly investment (ā¹)
r
Assumed annual return (%)
i
Monthly return, r Ć· 12
n
Months invested
Each instalment is invested at the start of the month.
A constant annual return, compounded monthly ā real returns vary.
Does not account for taxes (e.g. capital gains tax), expense ratios, exit loads or inflation.
Not investment advice. VIA Capital is not a SEBI-registered investment adviser and this calculator does not recommend any fund, product or investment strategy. Market-linked investments are subject to market risk; assumed returns are not indicative of future results.
Important limitation. This is an educational estimate based solely on the values and formula shown. It is not financial, tax or investment advice. Actual returns will differ from any assumed rate. Verify with a qualified financial professional before making any investment decision.
The calculator is one corner of a much bigger free toolkit. While you are here:
56+ financial calculators covering investments, loans, tax, retirement, small savings schemes and market maths ā all at /calculators.
PDF reports on every calculator, so a calculation you did today can be opened again in six months.
The VIA Trade Simulator ā practise buying and selling with virtual money on live market data, including an options chain, charts and order book, at /simulator. Virtual money only; no real trades, ever.
A live market heatmap for Nifty 50, Bank Nifty and Sensex constituents at /heatmap.
The IPO Centre with dates, price bands, subscription figures and listing history at /ipo.
Daily insights and explainers in this very blog, written in the same plain-English style as this page.
New tools and sections go live regularly, and each one gets written up here the same way.
Questions people ask us
Is the SIP Calculator free to use?
Yes. Every calculator on VIA Capital is free, works without a login, and nothing you type is stored on our servers.
How accurate is it?
The arithmetic is exact ā it is the formula shown above, nothing hidden. Accuracy of the answer depends on your inputs. Rates, tenures and charges change, so use the figures from your own statement or sanction letter rather than a number you remember.
Can I save or share the result?
You can download a formatted PDF report of your calculation and share it with your family, your CA or your bank. The download link sits right under the result.
Does it work on a phone?
It does. The sip calculator is built mobile-first, which is how most people in India actually search for "sip".
Is this investment advice?
No. VIA Capital is an education platform. We show you the maths and the assumptions; the decision, and the responsibility for it, stays with you. For anything personalised, speak to a SEBI-registered professional.
The short version
Project the future value of a monthly Systematic Investment Plan. The formula is public, the assumptions are printed on the page, and the calculation is yours to keep as a PDF.
VIA Capital publishes financial education only. Nothing here is investment advice or a personalised recommendation, and no calculator output should be treated as a promise of returns.
Educational content only. Educational content only. Not investment advice or a personalised recommendation.
