How to estimate your SIP returns
- Enter your Monthly investment and the Expected return you want to plan with.
- Enter the Period in years. Add a Yearly step-up if you plan to raise your SIP each year, and an Inflation rate to see the result in today’s money.
- Read the estimated value, how much of it you put in and how much is growth. The yearly table shows the SIP, total invested and value at the end of each year.
How a SIP grows
Each monthly instalment buys fund units and then grows on its own. The first instalment grows for the whole period, the last for only a month, so most of the final value comes from the early years’ money compounding. That’s why the returns column in the yearly table starts small and speeds up: in the default example, the first year earns ₹8,093, while the value nearly doubles the amount invested by year 10.
In a real fund the units are bought at each day’s NAV, so the number of units you get each month changes with the market. The calculator replaces all of that with one steady rate.
Choosing the return to enter
Use a rate that matches the kind of fund and your time frame, and test a few. A difference of a few percent matters a lot over long periods: ₹10,000 a month for 20 years at 10% and at 15% end up lakhs apart. Planning with a lower rate and being pleasantly surprised is safer than the opposite.
SIP or lump sum
A SIP spreads your buying over time, which suits money you earn monthly. If you already have a lump sum, the compound interest calculator shows how it grows, and the FD calculator shows a fixed deposit with a guaranteed rate for comparison.