Find out how much your monthly SIP of ₹500 to ₹1 Lakh can grow over 1 to 40 years with the power of compounding
Calculate your SIP returns instantly. Adjust the sliders and watch your wealth grow.
A SIP (Systematic Investment Plan) Calculator is a free online tool that helps you estimate the future value of your monthly mutual fund investments. By entering three simple inputs — your monthly investment amount, expected annual return, and investment duration — you can instantly see how much wealth your SIP can create over time.
Our Pocket Wealth Investments SIP Calculator uses the standard compound interest formula used by AMFI and all major mutual fund houses in India. The calculation accounts for monthly compounding, which means your returns earn returns — creating an exponential growth curve that gets steeper the longer you stay invested.
The SIP calculator uses the future value of annuity formula to project your investment growth. Here is the formula in simple terms:
Future Value = P × [(1+r)^n - 1] / r × (1+r)
Where P is your monthly SIP amount, r is the monthly rate of return (annual return divided by 12), and n is the total number of months. The calculator automatically handles this math for you — just move the sliders and see your results update in real time.
Let us walk through a practical example. If you invest ₹10,000 per month through SIP for 15 years at an expected return of 12% per annum (which is close to the historical average of large-cap equity mutual funds), here is what happens:
Total amount invested: ₹10,000 × 12 months × 15 years = ₹18,00,000 (₹18 Lakh)
Estimated maturity value: ₹47,52,739 (approximately ₹47.5 Lakh)
Wealth gained: ₹29,52,739 — that is 164% more than what you invested, purely from the power of compounding.
This is why financial experts say "start early and stay invested" — even a small monthly SIP, given enough time, can create substantial wealth.
Here is a quick reference showing how different SIP amounts grow over various time periods at 12% expected annual return:
| Monthly SIP | 5 Years | 10 Years | 15 Years | 20 Years | 25 Years |
|---|---|---|---|---|---|
| ₹500 | ₹41,243 | ₹1.16 L | ₹2.38 L | ₹4.50 L | ₹8.01 L |
| ₹2,000 | ₹1.65 L | ₹4.64 L | ₹9.50 L | ₹18.00 L | ₹32.03 L |
| ₹5,000 | ₹4.12 L | ₹11.62 L | ₹23.76 L | ₹45.00 L | ₹80.07 L |
| ₹10,000 | ₹8.25 L | ₹23.23 L | ₹47.53 L | ₹90.00 L | ₹1.60 Cr |
| ₹25,000 | ₹20.62 L | ₹58.08 L | ₹1.19 Cr | ₹2.25 Cr | ₹4.00 Cr |
| ₹50,000 | ₹41.24 L | ₹1.16 Cr | ₹2.38 Cr | ₹4.50 Cr | ₹8.01 Cr |
Note: These are estimates based on 12% annual returns. Actual returns depend on market conditions and fund selection. Past performance does not guarantee future results.
Rupee Cost Averaging: When markets fall, your fixed SIP amount buys more units. When markets rise, you buy fewer units. Over time, this averages out your cost per unit and reduces the impact of market volatility on your portfolio.
Power of Compounding: Albert Einstein reportedly called compound interest the eighth wonder of the world. In a SIP, your returns generate further returns. The longer you stay invested, the more dramatic the compounding effect becomes — which is why a 25-year SIP generates nearly 16 times more wealth than a 5-year SIP with the same monthly amount.
Discipline and Automation: SIP removes emotional decision-making from investing. Once you set up auto-debit, your investment happens every month regardless of market conditions, news headlines, or your mood. This discipline is what separates successful long-term investors from those who try to time the market.
Start Small: You do not need a large lump sum to begin. With most mutual funds accepting SIPs as low as ₹500 per month, anyone earning a salary can start building wealth immediately.
Starting your SIP through Pocket Wealth Investments takes less than 10 minutes. Here is the process:
Step 1: Contact us via WhatsApp or phone. Tell us your investment goal (retirement, child education, house purchase, wealth creation) and how much you can invest monthly.
Step 2: Complete your KYC online. You need your PAN card, Aadhaar card, bank account details, and mobile number. The entire process is paperless and takes about 10 minutes.
Step 3: We recommend the best mutual funds for your goal based on your risk profile, investment horizon, and amount. You choose the funds you want to invest in.
Step 4: Set up auto-debit SIP from your bank account. Your SIP amount gets automatically invested every month on your chosen date. You can track your portfolio anytime.
If you are just starting out, begin with an amount you can comfortably invest every month without financial stress. Even ₹500 or ₹1,000 per month is a great start. The key is consistency — you can always increase your SIP amount as your income grows. Many successful investors started small and gradually increased their SIP by 10-15% every year (called step-up SIP).
For long-term goals (5+ years), equity mutual fund SIPs have historically outperformed fixed deposits significantly. While FDs currently offer 6-7% returns, equity mutual funds have delivered 12-15% CAGR over 10-15 year periods. However, SIPs carry market risk while FDs offer guaranteed returns. For short-term goals (under 3 years), debt mutual funds or FDs may be more suitable.
Yes, you can pause, stop, increase, or decrease your SIP amount at any time without any penalty. The only exception is ELSS (tax-saving) mutual funds where each SIP installment has a 3-year lock-in period from its investment date. Your existing investments remain in the fund even if you stop the SIP.
If your bank account does not have sufficient balance on the SIP date, that particular installment is simply skipped. There is no penalty or fine. Your SIP continues from the next month automatically. However, consistently missing SIP payments defeats the purpose of disciplined investing.
No. Mutual fund investments are subject to market risks. The returns shown by this calculator are estimates based on assumed rates of return. Actual returns can be higher or lower depending on market conditions, fund performance, and economic factors. However, historically, staying invested for 10+ years in diversified equity mutual funds has delivered positive real returns for the vast majority of investors.
For equity mutual funds held over 12 months, long-term capital gains (LTCG) above ₹1.25 lakh per year are taxed at 12.5%. Short-term gains (held less than 12 months) are taxed at 20%. ELSS funds provide tax deduction under Section 80C up to ₹1.5 lakh per year, making them a popular tax-saving investment option.
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Disclaimer: This SIP calculator is for illustration purposes only. Mutual fund investments are subject to market risks. Read all scheme related documents carefully before investing. Past performance is not indicative of future results. ARN-356458 | SEBI Registered Mutual Fund Distributor.