A projection at a constant rate, not a forecast. Equity returns vary year to year and can be negative; the figure ignores expense ratio, exit load, and capital gains tax on redemption. Mutual fund investments are subject to market risks.
Each instalment compounds for a different length of time: the first one is invested for the whole period, the last one for a single month. Summing that series gives the standard future value formula:
Where M is the monthly instalment, i is the monthly return (annual rate ÷ 12 ÷ 100) and n is the number of instalments. The trailing (1 + i) reflects investing at the start of each month.
Example: ₹10,000 a month for 10 years at an assumed 12% a year:
Run the same ₹10,000 for 20 years instead and the projection is about ₹99.9 lakh, of which ₹24 lakh is your money and ₹76 lakh is growth. Nothing about the monthly amount changed; the time did.
| ₹10,000/month at 12% | Invested | Projected value | Growth as % of corpus |
|---|---|---|---|
| 5 years | ₹6,00,000 | ₹8.25 lakh | 27% |
| 10 years | ₹12,00,000 | ₹23.23 lakh | 48% |
| 15 years | ₹18,00,000 | ₹50.46 lakh | 64% |
| 20 years | ₹24,00,000 | ₹99.91 lakh | 76% |
| 25 years | ₹30,00,000 | ₹1.90 crore | 84% |
All figures assume a constant 12% annual return, which is an assumption, not a promise.
A lumpsum invested at the same rate for the same period always projects higher than a SIP of the equivalent total, simply because the whole sum compounds from day one. That arithmetic says nothing about which is wiser: a SIP spreads the entry price across market levels, which matters precisely because the return is not the constant this calculator assumes. Use the lumpsum mode for money you already have, and the SIP mode for money you will earn.
There is no correct number here, only a defensible one. Modelling equity at 10–12% and debt at 6–7% is common practice; modelling equity at 18% is projecting a bull market forever. A useful habit is to run the calculation twice — once at your optimistic rate and once four percentage points lower — and plan against the lower figure.
Each instalment compounds for a different length of time, so the total is the sum of that series: FV = M × [((1+i)^n − 1) ÷ i] × (1+i), where M is the monthly amount, i is the monthly return and n is the number of instalments. The calculator assumes a constant return; actual fund returns vary month to month.
Historic long-run equity index returns in India have been in the region of 11–13% a year, but with wide swings and long flat stretches. Modelling 10–12% for equity funds and 6–7% for debt funds is a common convention. Assuming much higher than that projects a permanent bull market.
At a constant assumed return a lumpsum always projects higher, because the whole amount compounds from day one. In practice returns are not constant, and a SIP averages your purchase price across market levels — which is why it suits money you earn monthly. A lumpsum suits money you already hold.
No. Mutual fund investments are subject to market risk and the value can fall. A SIP calculator projects an outcome at a rate you supply; it is a planning tool, not a forecast of what any fund will deliver.
Tax is due when you redeem, on the capital gains, and each SIP instalment has its own holding period for that purpose. The applicable rate depends on the fund category and how long the units were held. The projection here is before tax.
Yes. A SIP is an instruction, not a lock-in — you can pause, stop, increase or decrease it, and the units already bought stay invested. Only ELSS funds lock each instalment for three years.