SIP Calculator
Estimate the maturity value of a monthly SIP or mutual fund investment — total invested vs. estimated returns.
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Expected return is not guaranteed — mutual fund and market returns fluctuate year to year.
Estimated Maturity Value
$100,562
180 monthly installments
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Last updated: August 25, 2026 · Reviewed by the DoCalc team
What Is a SIP?
A Systematic Investment Plan (SIP) means investing a fixed amount into a mutual fund or similar vehicle on a regular schedule — usually monthly — rather than committing a lump sum all at once. It's a disciplined, automatic way to build an investment over time, and it's especially popular for retail investors who want to invest consistently without trying to time the market.
The Formula
This is the future value of a series of regular investments made at the start of each period (the trailing ×(1+i) accounts for that timing), each compounding at the expected rate for however long remains until maturity.
Worked Example
$200 invested every month for 15 years (180 installments) at a 12% expected annual return: total invested = $200 × 180 = $36,000. Running the SIP formula gives a projected maturity value of about $100,562 — meaning roughly $64,562 of that is estimated investment growth, not money you put in directly.
Why SIP Investing Smooths Out Volatility
Because you invest the same amount on a fixed schedule regardless of whether the market is up or down, you naturally buy more units when prices are low and fewer when prices are high — a benefit commonly called rupee-cost or dollar-cost averaging. Over a long enough period, this tends to average out your purchase cost rather than betting everything on a single entry point.
Worth knowing: The "expected return" you enter is a projection, not a guarantee — actual mutual fund and market returns vary year to year, and past performance never guarantees future results.
SIP vs. Lump Sum
| SIP | Lump sum | |
|---|---|---|
| Timing risk | Lower — spread across many entry points | Higher — all at one entry point |
| Discipline required | Built-in, automatic | One decision, then done |
| Growth time | Later installments have less time to compound | Full amount compounds from day one |
Frequently Asked Questions
What is a SIP?
A Systematic Investment Plan — investing a fixed amount into a mutual fund (or similar) on a regular schedule, usually monthly, rather than investing a lump sum all at once.
What's the SIP maturity formula?
FV = P × [((1+i)^n − 1) / i] × (1+i), where P is the monthly investment, i is the monthly expected return rate, and n is the total number of monthly installments.
Is the "expected return" guaranteed?
No — this calculator projects a result based on a rate you enter, but actual mutual fund and market returns fluctuate and are never guaranteed. Treat the output as an estimate, not a promise.
Why does SIP investing smooth out market volatility?
Investing the same amount regularly buys more units when prices are low and fewer when prices are high, averaging your purchase cost over time — a benefit known as rupee/dollar-cost averaging.
How is a SIP different from a lump-sum investment?
A lump sum invests everything at once and compounds from day one; a SIP spreads the same total investment across many smaller deposits, which reduces timing risk but also means later installments have less time to grow.