Method, example and interpretation · Revised 16 October 2026
Read a SIP projection without treating it as a promise
A systematic investment plan describes how you invest, not a guaranteed return. This calculator isolates the effect of a recurring contribution, a time horizon, and an assumed rate so you can test whether a planned contribution is in the right range for your goal.
Contribution timing and compounding
The model places each contribution at the beginning of the month and uses the annual nominal rate divided by twelve. The future value is M × [((1 + r)^n − 1) ÷ r] × (1 + r), where M is the monthly contribution. This monthly convention can differ from a fund’s published effective annual performance.
Use the invested-versus-growth split
Total invested is the contribution multiplied by the number of months. Estimated gains are the difference between corpus and contributions. The year-by-year table helps distinguish money you added from modelled growth. The total corpus is a future nominal amount; it has not been reduced for inflation, tax, exit loads or fund charges.
A more useful planning exercise
Start with a contribution you can sustain. Run a lower-return scenario before extending the horizon or raising contributions. Compare a flat monthly plan with an annual step-up plan if your income is likely to change. Real markets have uneven returns; withdrawing during a downturn can produce a different outcome from this smooth projection.
Worked example
₹10,000 at the beginning of each month for 15 years, assuming 12% nominal annual return.
Contributed: ₹18,00,000. Projected corpus: ₹50,45,760.
The difference is a modelled gain, not interest promised by a mutual fund. Share links preserve the contribution, rate and duration.
Questions about this tool
Are these returns guaranteed?
No. The selected rate is an assumption, and actual returns may be negative over some periods.
Why might another SIP calculator disagree?
Compare contribution timing and whether the rate is treated as nominal monthly compounding or effective annual return.