Using one optimistic rate
A single high rate can create false confidence.
Investments • Hypothetical projection
SIP Calculator
Estimate how regular monthly contributions may grow under a constant assumed return. The output separates your invested amount from hypothetical growth so the assumption remains visible.
Enter SIP assumptions
Use an amount you could sustain through uneven months.
This is an assumption—not a promise.
How to use this calculator
- Enter the amount planned for each month.
- Add a hypothetical annual return.
- Enter the duration in years.
- Select Estimate value.
- Compare estimated value with total invested.
Run at least three scenarios. For example, if 12% feels optimistic for your planning purpose, also test 8% and 10%. A lower-rate scenario can reveal whether the goal depends too heavily on uncertain market growth.
Formula and assumptions
FV = M × [((1+r)n − 1) ÷ r] × (1+r)
M is monthly contribution, r is annual return divided by 12 and 100, and n is months. This annuity-due model treats contributions as beginning-of-period payments. At 0%, future value equals total contributions.
The model assumes an unchanged contribution and smooth monthly compounding. It excludes volatility, pauses, costs, tax, exit load and tracking difference.
Worked example
A monthly SIP of ₹5,000 for 10 years at an illustrative constant return of 12% a year produces the following rounded projection:
| Total invested | ₹6,00,000 |
|---|---|
| Hypothetical growth | ₹5,61,695 |
| Estimated future value | ₹11,61,695 |
This is a mathematical illustration only. Real returns do not arrive smoothly, and the final value can differ substantially.
How to interpret the result
Total invested is your contribution before any missed or changed instalments. The difference between projected value and invested amount is estimated growth. It is not accrued interest promised by a bank.
A longer period can make the assumed growth look powerful, but it also magnifies the effect of an unrealistic return input. Use the Inflation Calculator to compare the future amount with future purchasing power.
Practical tips
- Build an emergency fund before depending on a long-term SIP.
- Choose the underlying fund based on goal, horizon and risk—not past return alone.
- Keep the monthly amount affordable.
- Review the goal and asset mix periodically.
- Increase contributions only when cash flow allows.
- Do not treat an assumed return as guaranteed.
Common SIP calculator mistakes
Ignoring inflation
A future rupee amount may buy less than expected.
Forgetting volatility
Real returns vary year to year and may be negative.
Overcommitting
An unaffordable SIP is harder to sustain consistently.
Related learning and tools
Frequently asked questions
Is a SIP return guaranteed?
No. Actual returns are market-linked.
What return should I enter?
Use cautious scenarios rather than one forecast.
Does this model volatility?
No. It uses smooth monthly compounding.
Does it include costs or tax?
No. Costs, exit load and tax are excluded.
Can I change the SIP later?
Actual instructions may be changed subject to platform rules; this model keeps the amount constant.
Why is growth not guaranteed?
Market prices vary while the calculation uses a fixed assumption.
What does 0% return show?
It shows total contributions as a baseline.
Is SIP a mutual fund?
No. SIP is an investing method; the fund is the underlying product.
Educational disclaimer
This tool is for education and general planning, not personalised investment advice. Mutual fund returns are market-linked and not guaranteed. Read current scheme documents and consider your goals and risk capacity.