SIP Calculator

SIP

Lumpsum

Monthly SIP Amount₹

SIP Period (in years)Yrs

Expected Rate of Return (p.a.)%

The Total Value of Your Investment After 10 Years Will be

₹23,23,391

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What is an SIP Calculator?

A SIP calculator helps you estimate how much your mutual fund investment can grow when you invest through a Systematic Investment Plan. By entering your monthly investment, time period, and expected return rate, you can see the potential maturity value.

How to Use the SIP Calculator with YES SECURITIES?

Below are the three primary parameters you need to consider while using a SIP calculator:

The initial investment amount (P)
The investment's frequency (n)
Rate of return expected (r)

Once you enter these details, the calculator shows you the total amount you will’ll invest and and estimates of the growth in your investment’s value at the end of the investment period.

Steps to Use the YES SECURITIES SIP Calculator

Follow the steps below on how to use our mutual fund calculator with just a few clicks:

Step 1: Enter the monthly investment amount you want to invest.
Step 2: Enter the number of years you plan to keep investing.
Step 3: Enter the expected annual rate of return. (e.g. the Nifty 100 gave 13.8% return in last 10 years)

How are SIP Investment Returns Calculated?

The growth of a Systematic Investment Plan (SIP) is based on the principle of compounding. Since every instalment is invested for a different length of time, the maturity value is worked out using a formula rather than a simple addition.

Formula:

A = P × (([1 + r]^n – 1) / r) × (1 + r)

Where:

A = Value at the end of the SIP
P = Amount invested each month
r = Monthly rate of return (derived from annual return, not just annual ÷ 12)
n = Total number of months

How is Monthly Rate of Return Different from Annual Return?

Many people assume that an annual return of 12% means a flat 1% return per month (12 ÷ 12). But this gives an inflated result because investment returns are compounded.

To get the correct monthly rate, the formula is:

A = P × (([1 + r]^n – 1) / r) × (1 + r)

Monthly Return = (1 + Annual Return)^(1/12) – 1.

Example Calculation

Imagine you invest ₹10,000 every month in an SIP for 10 years, expecting an annual return of 12%.

First, convert the 12% annual return into monthly:
r=(1+0.12)1/12–1≈0.00949(0.949%monthly)

Total number of instalments:
n=10×12=120months

Applying the formula:
A=10,000×0.00949(1+0.00949)120–1 ×(1+0.00949)

₹23.2 lakh at maturity.

Here, your contribution is ₹12 lakh, and the rest (~₹11.2 lakh) is the return generated.

Projected SIP Returns

The illustration below shows how a monthly SIP of ₹10,000, with an expected annual return of 12% (compounded monthly), can grow over different investment durations.

Duration (Years)	SIP Amount	Total Investment (₹)	Estimated Value at 12% Return (₹)
1	₹10,000	₹1.2 Lakh	₹1.27 Lakh
2	₹10,000	₹2.4 Lakh	₹2.71 Lakh
3	₹10,000	₹3.6 Lakh	₹4.42 Lakh
4	₹10,000	₹4.8 Lakh	₹6.43 Lakh
5	₹10,000	₹6.0 Lakh	₹8.68 Lakh
6	₹10,000	₹7.2 Lakh	₹11.24 Lakh
7	₹10,000	₹8.4 Lakh	₹14.15 Lakh
8	₹10,000	₹9.6 Lakh	₹17.47 Lakh
9	₹10,000	₹10.8 Lakh	₹21.26 Lakh
10	₹10,000	₹12.0 Lakh	₹25.60 Lakh

How Can a SIP Calculator Help You?

The SIP calculator is an easy-to-use online tool that helps you plan your investments better. This systematic investment plan calculator shows you two key numbers:

Investment Amount: The total amount you put in every month through SIP.
Estimated Returns:How much your amount may grow based on the rate of return.

SIP calculators show how your funds can grow and help you pick the right plan for your goals.

Advantages of SIP Calculator

Here are the benefits of using the SIP calculator for your investment needs:

Instant Results: With no manual calculations the SIP calculator delivers instant estimated returns making investment planning simple.
User-Friendly: This systematic investment plan calculator is simple to use, free, and perfect for beginners and experienced investors.
Smarter Planning: Make better investment choices based on your financial goals.

FAQs on SIP Calculator

How much can I invest in a SIP?

You can start with a minimum amount of ₹500 per month with no upper limit, however it depends on your financial capacity and fund rules.

What is the maximum tenure of a SIP?

There is no fixed maximum tenure. You can continue a SIP for as long as you want or until the scheme exists.

Are SIPs similar to mutual funds?

A SIP is not separate from mutual funds. It is just a method of investing in mutual funds regularly.

Can I renew a SIP?

Yes, once the SIP tenure ends, you can either renew it or start a new SIP in the same or a different mutual fund, based on your investment goals.

Can I pause my investments in a SIP?

Yes, many mutual funds allow you to temporarily pause your SIP for a few months instead of cancelling it entirely, giving you flexibility during financial situations.

What happens if I invest ₹1,000 per month in a SIP for 10 years?

Assuming a 12% annualised return, a ₹1,000 monthly SIP over 10 years may grow to approximately ₹2.3 lakh*.

How much can a ₹5,000 monthly SIP become in 5 years?

At an assumed 12% annualised return, investing ₹5,000 every month for 5 years may grow to around ₹4 lakh*.

Is there any lock-in period for a regular SIP?

No, regular SIPs do not have a lock-in period. You can redeem your investment anytime. However, ELSS SIPs come with a mandatory lock-in period of 3 years.

Are SIP returns guaranteed?

No, SIP returns are market-linked and not guaranteed. Returns depend on the performance of the underlying mutual fund and market conditions.

*Disclaimer: The figures are illustrative only. Actual returns depend on market performance. Mutual fund investments are subject to market risks. Please read scheme documents carefully before investing.