Project the future value of a fixed monthly SIP investment at an assumed constant annual return. A real SIP's return will vary with the market and won't be this smooth - this is a planning estimate, not a projection ReviewHub is making.
How this calculator works
A SIP (Systematic Investment Plan) invests a fixed amount every month into a mutual fund, buying units at that month's NAV. Because each instalment is invested at a different price, your average purchase cost smooths out over time - this is what's usually meant by "rupee cost averaging."
The maturity value above uses the standard SIP future-value formula: FV = P × [((1+r)^n − 1) / r] × (1+r), where P is your monthly instalment, r is the monthly rate (your expected annual return divided by 12), and n is the total number of instalments (years × 12). The trailing (1+r) reflects that most SIPs are modelled as investing at the start of each month, so even the final instalment earns one month of growth.
This is a fixed-rate projection, not a forecast. A real mutual fund's month-to-month return is never constant - some months it's negative - so treat the result as a planning reference, not a promise of what you'll actually receive.
Frequently asked questions
What is a SIP?
A Systematic Investment Plan (SIP) is a way of investing a fixed amount into a mutual fund at regular intervals, usually monthly, instead of investing a lump sum all at once.
Is 12% a realistic SIP return assumption?
12% is a commonly used illustrative figure based on long-term historical averages for diversified Indian equity mutual funds, but it isn't guaranteed - actual returns depend entirely on the market and the fund you choose, and can be lower (or negative) over shorter periods.
Does this calculator account for a step-up SIP?
No - it assumes a fixed monthly instalment throughout. A step-up SIP, where you raise the instalment every year, reaches a higher maturity value than shown here for the same starting amount.
SIP or lumpsum - which is better?
Neither is universally better - it depends on your cash flow and market timing. See our
lumpsum calculator to compare a one-time investment against the same duration and return assumption.
This calculator performs fixed, transparent arithmetic on the numbers you enter - the formula is shown alongside the result. It is not a projection, forecast, or guarantee of real investment performance; the assumed rate of return is an input you choose, not a prediction ReviewHub is making. This is not investment advice - always do your own research or consult a registered investment adviser before making financial decisions.