# SIP calculator

Estimate what a monthly investment could grow to

Use it at https://www.quicktoolz.com/tools/sip-calculator. From QuickToolz.

SIP stands for systematic investment plan, a fixed amount invested every month. ₹5,000 a month at an assumed 12% a year for 10 years comes to about ₹11,61,695, of which ₹6,00,000 is what you put in. Real returns vary from year to year and aren’t guaranteed.

## How it works

value = M × ((1 + i)ⁿ − 1) ÷ i × (1 + i)

We assume each payment is made at the start of the month, and that the yearly return is divided by 12 for each month.

A step-up raises your monthly amount once a year, which can make a large difference over a long time.

Worked example: ₹5,000 a month at 12% a year for 10 years: i is 12 ÷ 12 ÷ 100 = 0.01 and n is 120. You invest ₹6,00,000.00, and the estimated value is ₹11,61,695.38.

## Examples

| Monthly | Return | Time | Invested | Estimated value |
| --- | --- | --- | --- | --- |
| ₹1,000.00 | 12% | 10 years | ₹1,20,000.00 | ₹2,32,339.08 |
| ₹5,000.00 | 12% | 10 years | ₹6,00,000.00 | ₹11,61,695.38 |
| ₹5,000.00 | 12% | 20 years | ₹12,00,000.00 | ₹49,95,739.60 |
| ₹10,000.00 | 10% | 15 years | ₹18,00,000.00 | ₹41,79,242.66 |

## What this tool doesn't cover

- Market returns change, so this is only an estimate. Returns aren’t guaranteed.
- Tax, exit loads and fund charges aren’t included.
- This isn’t financial advice.

## Questions

### Are SIP returns guaranteed?

No. This shows what a steady return would give. Real returns go up and down.

### What return should I enter?

Use a cautious figure. Past returns don’t tell you what will happen next.

### What is a step-up SIP?

You raise your monthly amount by a set percentage each year, often in line with your pay.

### What is a SIP?

A systematic investment plan puts a fixed amount into a mutual fund at set times, usually monthly. You buy more units when prices are low.

### Is it better to invest a lump sum or use a SIP?

It depends on the market, which nobody can predict. A lump sum has longer in the market, while a SIP spreads your buying over time.

## Sources

- [Reserve Bank of India](https://www.rbi.org.in)
- [SEBI investor education](https://investor.sebi.gov.in)