Mera Hisab
What is a SIP?
A SIP (Systematic Investment Plan) lets you invest a fixed amount in a mutual fund every month, starting from as little as ₹100–₹500. Because you invest regularly, you buy more units when prices are low and fewer when they are high, and over the years compounding does most of the work.
How is the SIP value calculated?
The calculator uses the standard formula for monthly investments:
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i)
- FV = estimated value at the end
- P = monthly investment
- i = expected monthly return (annual return ÷ 12 ÷ 100)
- n = number of monthly instalments
It assumes a steady return every month. Real mutual fund returns go up and down, so treat the result as an estimate.
Examples: ₹5,000 a month at 12%
| Time period | Amount invested | Estimated returns | Total value |
|---|---|---|---|
| 10 years | ₹6,00,000 | ₹5,61,695 | ₹11,61,695 |
| 15 years | ₹9,00,000 | ₹16,22,880 | ₹25,22,880 |
| 20 years | ₹12,00,000 | ₹37,95,740 | ₹49,95,740 |
Staying invested for 20 years instead of 10 doubles the amount you put in, but the final value becomes more than four times larger. That is the power of compounding, and why starting early matters.
How the expected return changes the result
For ₹5,000 a month over 20 years (₹12 lakh invested):
| Expected return | Total value |
|---|---|
| 8% | ₹29,64,736 |
| 10% | ₹38,28,485 |
| 12% | ₹49,95,740 |
| 14% | ₹65,81,731 |
Small differences in return make a big difference over long periods. Plan with a conservative rate and see how the result changes if returns are lower.
Important: returns are not guaranteed
Mutual fund investments are subject to market risks. Unlike an FD or RD, a SIP has no fixed return, and the value can fall in the short term. Past returns of a fund do not guarantee future returns. Gains are taxable when you redeem; check the current capital-gains rules before you withdraw.
Tips
- Start early. Time in the market matters more than the amount.
- Increase your SIP each year as your income grows, even by 10%.
- Don't stop during market falls. Your SIP buys more units when prices are low.
- Consider direct plans, which have lower expense ratios than regular plans.
Frequently asked questions
Is the 12% return guaranteed?
No. 12% is only an example. Equity mutual funds can give higher or lower returns, and some years can be negative. Always check the result at a lower rate too.
What return should I assume?
There is no fixed answer. Compare the result at 8%, 10% and 12% to see a range, and base your plan on the lower figures so you are not caught short.
Can I stop or change my SIP later?
Yes. You can usually pause, stop, increase or reduce a SIP at any time through your fund house or app. An exit load may apply if you redeem units within a short period of investing.
Is a SIP better than a lump-sum investment?
A SIP suits a monthly income and reduces the risk of investing everything at a market peak. A lump sum can earn more if markets rise steadily, but it carries more timing risk.
Is the information I enter saved anywhere?
No. The calculation happens entirely in your browser. Nothing you enter is sent to our server or stored.