How to use
- Choose SIP (a fixed amount every month) or Lumpsum (one payment).
- Enter the amount, the expected yearly return and the number of years.
- Optional: add a yearly step-up to raise your SIP every 12 months.
- See the estimated value, what you invested and the estimated gains, year by year.
SIP formula
M = P × ((1 + i)^n − 1) ÷ i × (1 + i)
- P is the monthly investment and n the number of months.
- i is the monthly return: yearly return ÷ 12 ÷ 100.
- Each instalment is invested at the start of the month, which is why the formula ends with × (1 + i).
This is the formula used by NISM’s SIP calculator. A lumpsum grows as amount × (1 + yearly return)^years.
Examples
₹10,000 a month at 12% for 10 years:
- Invested: ₹12,00,000
- Estimated value: ₹23,23,391
- Estimated gains: ₹11,23,391
With a 10% yearly step-up: about ₹33,74,326 from ₹19,12,491 invested. In year 10 you invest ₹23,579 a month.
₹1,00,000 lumpsum at 12% for 10 years: about ₹3,10,585.
₹10,000 a month over time
| Years | Invested | At 8% | At 12% |
|---|---|---|---|
| 5 | ₹6,00,000 | ₹7,39,667 | ₹8,24,864 |
| 10 | ₹12,00,000 | ₹18,41,657 | ₹23,23,391 |
| 15 | ₹18,00,000 | ₹34,83,451 | ₹50,45,760 |
| 20 | ₹24,00,000 | ₹59,29,472 | ₹99,91,479 |
| 25 | ₹30,00,000 | ₹95,73,666 | ₹1,89,76,351 |
Important limits
- Not guaranteed: fund returns change every year and can be negative.
- Steady return assumed: real values go up and down along the way.
- Costs left out: expense ratio, exit loads and capital gains tax reduce what you receive.
Why other SIP calculators show different numbers
Dividing 12% by 12 gives 1% a month, which works out to about 12.68% a year once compounded. Some calculators use a smaller monthly rate that compounds to exactly 12% a year.
For ₹1,000 a month for 12 months, that gives ₹12,766 instead of ₹12,809. Neither is wrong; they are different assumptions.
Saving in a bank deposit instead? The compound interest calculator handles fixed rates and any compounding.