SIP Calculator: Estimate SIP Returns Free (Worked Examples)

To estimate SIP returns, you need three things: the monthly amount, an assumed yearly return and the number of years. Put them in the free compound interest calculator as a monthly deposit, with a starting amount of 0. A SIP of ₹5,000 a month for 10 years at an assumed 12% a year grows to about ₹11.5 lakh, of which ₹6 lakh is what you put in. Mutual fund returns are market-linked, so this is an illustration, not a promise.

What a SIP is

A SIP (systematic investment plan) is a fixed amount invested in a mutual fund every month, usually by auto-debit. Each instalment buys units at that day's price. Over time, any growth compounds: gains made in earlier years earn further gains later.

Unlike a fixed deposit, a SIP has no fixed rate. Equity funds can fall 20% in a bad year and rise 30% in a good one. When people say "assume 12%", they mean an average yearly return over a long period, which may or may not happen.

Use the calculator as a SIP calculator

1. Open the free compound interest calculator.
2. Set Starting amount to 0 (or the lump sum you're starting with).
3. Enter your assumed return in Interest rate (yearly), for example 12.
4. Set Compounded to Monthly.
5. Enter the number of Years, a whole number from 1 to 100.
6. Enter your SIP in Monthly deposit (optional), for example 5000.
7. Read Final balance, Total put in and Interest earned, and scroll Growth by year to see the value at the end of each year.

The calculator shows plain numbers with international commas, so ₹11,50,193 appears as 1,150,193.45. Your numbers stay on your device.

Worked example: ₹5,000 a month for 10 years at 12%

With the settings above, the calculator shows:

• Final balance: 1,150,193.45 (about ₹11.50 lakh)
• Total put in: 600,000.00 (₹6 lakh)
• Interest earned: 550,193.45 (about ₹5.50 lakh)

With Compounded set to Monthly, a 12% yearly rate is applied as 1% a month. Each ₹5,000 instalment grows for the months left in the plan: the first one for almost 10 years, the last one for none.

How the assumed return changes the result

Same ₹5,000 a month for 10 years, compounded monthly:

Assumed return	Final value	Gain
7% (similar to some debt options)	₹8,65,424	₹2,65,424
8%	₹9,14,730	₹3,14,730
10%	₹10,24,225	₹4,24,225
12%	₹11,50,193	₹5,50,193

Time matters even more than the rate. At 12% with ₹5,000 a month:

Years	Total put in	Final value
10	₹6,00,000	₹11,50,193
20	₹12,00,000	₹49,46,277

Doubling the time from 10 to 20 years doubles what you put in but more than quadruples the final value. That's compounding at work, and it's why starting early matters more than starting big. A ₹10,000 SIP for 15 years at 12% reaches about ₹49,95,802, almost the same as ₹5,000 for 20 years, while costing ₹6 lakh more.

Why other SIP calculators show a slightly higher number

Many SIP calculators assume each instalment goes in at the start of the month. Our calculator adds deposits at the end of each month, after that month's interest. For ₹5,000 at 12% for 10 years, the start-of-month method gives about ₹11.62 lakh, versus our ₹11.50 lakh. The difference is just one extra month of growth on every instalment, and both are estimates.

There's a second choice that matters more: what "12% a year" means.

• Compounded: Monthly treats 12% as 1% a month. That's what most SIP calculators do, and over a full year it actually works out to about 12.7%.
• Compounded: Yearly treats 12% as the real yearly growth, which is how fund returns (CAGR) are usually reported. The same SIP then reaches about ₹11.10 lakh.

If you're comparing with a fund's past CAGR, Yearly is the more cautious choice.

What the calculator can't model

• Step-up SIPs. If you raise your SIP each year, the calculator can't do it in one go. Run it in stages, using the previous stage's final balance as the next starting amount.
• Ups and downs. Real returns vary every year, and the order matters. A crash just before you need the money hurts far more than one early on.
• Costs and tax. Expense ratios are already reflected in a fund's returns, but exit loads and tax aren't included. For equity funds, gains held over a year are taxed as long-term capital gains above an exemption limit (gains above ₹1.25 lakh a year taxed at 12.5%, as set in the July 2024 Union Budget); tax rules change, so check the current ones or ask a tax professional.
• Inflation. ₹11.5 lakh in 10 years will buy less than ₹11.5 lakh today.

Using the estimate sensibly

• Run three scenarios: a cautious rate, a middle one and an optimistic one. Plan around the cautious one.
• Match the time to the goal. Equity SIPs suit goals five or more years away. For money needed sooner, look at safer options; see SIP vs FD.
• Use percentages for quick checks. The free percentage calculator shows how much your gain is as a percentage of what you put in.

The maths of compounding, with and without deposits, is explained in how compound interest works.

Estimate your SIP now

Enter your monthly amount, an assumed return and the number of years in the free compound interest calculator to see your estimated SIP value and a year-by-year table. It's free and private. This is an illustration, not investment advice: mutual fund investments are subject to market risks, and past returns don't guarantee future ones.