SIPs invest a fixed amount every month, buying more units when prices are low (rupee- or dollar-cost averaging). A lump sum invested earlier usually grows more if markets rise, but SIPs reduce timing risk.
How to use the Mutual Fund Calculator
- Monthly investment (SIP)
- Lump sum investment
- Expected annual return
- Investment period
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the monthly investment, any lump sum, the expected annual return and the investment period.
Tips
- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.
Common mistakes to avoid
- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).
Inputs explained
| Field | What to enter |
|---|---|
| Monthly investment (SIP) | Amount in your currency |
| Lump sum investment | Amount in your currency |
| Expected annual return | In % |
| Investment period | Units: years, months |
What each result means
- Total amount invested = [Monthly investment (SIP)]×round([Investment period]×12) + [Lump sum investment]
- Investment amount at maturity = fvc((1 + [Expected annual return]÷100)^(1÷12) – 1, round([Investment period]×12), [Lump sum investment], [Monthly investment (SIP)], 1)
- Estimated returns = [Investment amount at maturity] – [Total amount invested]
- Wealth multiple = [Investment amount at maturity]÷[Total amount invested]
Example values
How the main result changes when Monthly investment changes and everything else stays at the example values above:
| Monthly investment (SIP) | Investment amount at maturity |
|---|---|
| 2,500 | 560,089.72 |
| 3,750 | 840,134.59 |
| 5,000 | 1,120,179.45 |
| 6,250 | 1,400,224.31 |
| 7,500 | 1,680,269.17 |
| 10,000 | 2,240,358.9 |
Formula
SIP: FV = monthly investment × [(1 + i)^n − 1] ÷ i × (1 + i), i = (1 + r)^(1/12) − 1Lump sum: FV = amount × (1 + r)^tWorked example
Inputs — Monthly investment (SIP): $5,000; Lump sum investment: $0; Expected annual return: 12 %; Investment period: 10 years.
Results — Total amount invested = $600,000.00; Investment amount at maturity = $1,120,179.45; Estimated returns = $520,179.45; Wealth multiple = 1.87 ×.
Frequently asked questions
What is a SIP?
A systematic investment plan – investing a fixed amount in a fund every month.
Is SIP better than lump sum?
Lump sums often win in rising markets; SIPs reduce the risk of bad timing.
What return should I assume?
Equity funds have historically returned around 10–12% a year in India over long periods; returns are not guaranteed.
What formula does the Mutual Fund Calculator use?
SIP: FV = monthly investment × [(1 + i)^n − 1] ÷ i × (1 + i), i = (1 + r)^(1/12) − 1.