SIP Calculator: Mutual Fund SIP Returns
How SIP returns are estimated
A systematic investment plan (SIP) invests a fixed amount in a mutual fund every month. This calculator assumes each instalment is made at the start of the month and grows at a steady rate, using FV = M × ((1 + i)n − 1) ÷ i × (1 + i), where M is the monthly amount, i is the monthly return and n is the number of months.
Real returns are never steady. Equity funds can fall sharply in some years and rise in others. Investing every month means you buy more units when prices are low, which is called rupee-cost averaging. The figure here shows the long-run growth if the average return holds; it is not a promise.
Choosing a sensible return
- Debt funds have historically returned roughly in line with bank deposits; 6–7% is a cautious assumption.
- Large-cap equity funds are often modelled at 10–12% over long periods, with wide swings from year to year.
- Inflation also matters: ₹1 crore in 20 years will buy far less than ₹1 crore today. Subtracting about 5–6% from your return estimate gives a rough “today’s money” figure.
Mutual fund investments are subject to market risks. This is an illustration only, not investment advice. Taxes and expense ratios are not included.