Estimate SIP investment growth with monthly contributions.
The SIP (Systematic Investment Plan) Calculator projects the future value of regular monthly investments into a mutual fund at an assumed annual return rate. Unlike a lump sum investment, SIP spreads purchases across time — automatically buying more units when prices are low and fewer when prices are high. This rupee-cost averaging reduces the impact of market volatility. The formula used is the future value of an annuity: FV = P × ((1+r)^n − 1) / r × (1+r) where P is monthly investment, r is monthly rate, and n is total months.
A lump sum invests everything at once — if the market drops the next day, you lose value. SIP spreads investment over time, so you buy at multiple price points. In volatile or declining markets, SIP typically outperforms lump sum for retail investors.
For Indian equity mutual funds, 10–12% per year is a historically grounded assumption for large-cap funds over 10+ year horizons. Mid-cap/small-cap funds have higher historical returns but also higher volatility. Never assume past returns guarantee future performance.
XIRR (Extended IRR) accounts for the exact timing of each investment. The SIP calculator uses an assumed flat rate. Your actual XIRR depends on real NAV history. Use XIRR in Excel or your mutual fund app to measure real past returns.