SIP Calculator
Calculate the future value of your monthly mutual fund investments in just a few seconds with Kotak Neo’s SIP calculator. Just enter your monthly SIP amount, investment tenure and expected annual return rate, and the mutual fund SIP calculator will let you check your total invested amount, estimated returns and maturity value online instantly.
Monthly SIP Amount
SIP Period
Expected Return Rate (p.a)
Investment
Estimated Returns
Invested amount
₹ 30,00,000
Estimated returns
₹ 39,66,432
Total value
₹ 69,66,432
Disclaimer: Past performance is not an indicator of future returns
What Is An SIP Calculator?
An SIP calculator lets you estimate mutual fund returns in advance. Enter your investment details. The tool then projects the future value of your SIP by factoring in the compounding growth of fixed monthly contributions over a selected period.
An SIP investment calculator helps you understand how your regular investments can grow over a period of time without you doing the manual calculations on your own. A mutual fund SIP calculator provides you with three important results. These are the total amount you have invested, the estimated returns and the estimated maturity value. It is handy for retirement planning, education goals, home purchases and other long-term goals.
SIP Calculation Formula
An SIP interest calculator works on the principle of compound interest. Every monthly investment earns returns, and those returns are assumed to generate further returns over time.
The SIP calculation formula is:
FV = P × {[(1 + i)^n − 1] / i} × (1 + i)
FV | Future value or maturity amount | ₹50,52,902 |
P | Monthly SIP amount | ₹10,000 |
i | Monthly return rate | 0.95% |
n | Total monthly investments | 180 |
Calculating The Monthly Return Rate
It is a common mistake to divide the annual return by 12. The right monthly conversion as the SIP compounds is:
i = (1 + Annual Return)^(1/12) − 1
For a 12% annual return:
i = (1 + 0.12)^(1/12) − 1 = 0.009489 ≈ 0.95%
Example Calculation
Let us say you invest ₹10,000 per month for 15 years with an expected annual return of 12%. Then your total number of instalments comes to 180.
- Monthly SIP (P) = ₹10,000
- Annual Return = 12%
- Monthly Return (i) = 0.95%
- Total Instalments (n) = 15 × 12 = 180
Applying the SIP formula:
FV = 10,000 × {[(1 + 0.009489)^180 − 1] / 0.009489} × (1.009489)
Maturity Value ≈ ₹50.5 lakh
While mutual fund returns ultimately depend on market movements and the funds you choose, an SIP compounding calculator delivers these estimates instantly. No manual calculations, just a quick way to compare different investment scenarios with accuracy.
SIP Returns By Investment Amount And Duration
The table below shows the power of different SIP amounts at an assumed 12% annual return. It can be used as a reference for a quick SIP return calculator for comparison of amounts and tenures of investment.
₹1,000 | 10 Years | ₹1,20,000 | ₹1,12,339 | ₹2,32,339 |
₹5,000 | 5 Years | ₹3,00,000 | ₹1,12,432 | ₹4,12,432 |
₹10,000 | 15 Years | ₹18,00,000 | ₹32,48,025 | ₹50,48,025 |
₹15,000 | 25 Years | ₹45,00,000 | ₹2,11,86,076 | ₹2,56,86,076 |
Year-wise Growth Example (₹10,000 SIP, 12% Return, 15 Years)
1 | ₹1,20,000 | ₹1,28,099 |
3 | ₹3,60,000 | ₹4,29,525 |
5 | ₹6,00,000 | ₹8,24,863 |
10 | ₹12,00,000 | ₹23,24,586 |
15 | ₹18,00,000 | ₹50,48,025 |
This SIP calculator's yearly view highlights the impact of compounding as your tenure increases.
How To Use The Kotak Neo SIP Calculator
- Enter your SIP amount. Choose a scheme that fits your needs, and you can start with as little as ₹100.
- Choose the investment duration. You can do this manually or by dragging the toggle from left to right to select the desired tenure.
- Add the expected annual return (%) by either typing it or by moving the toggle from left to right if you prefer a quicker method.
- View invested amount, estimated returns, and maturity value in real time.
The Kotak Neo SIP Calculator lets you compare different investment scenarios within seconds.
Daily, Weekly, And Monthly SIP: What’s The Difference?
The frequency of a mutual fund SIP is not fixed. This will depend on the fund house and investment platform. Daily SIP calculators and weekly SIP calculators are commonly searched for. Yet monthly SIP calculators remain the preferred option for most investors.
Daily | ₹100 to ₹500 | Invest a little every day | Building a consistent investing habit |
Weekly | ₹500 to ₹1,000 | Contributions made once a week | People whose income changes from week to week |
Monthly | ₹100 to ₹1,000 | A monthly investment schedule | Salaried individuals focused on long-term wealth growth. |
Most of the salaried investors still prefer monthly SIPs. That is why the Kotak Neo SIP calculator calculates the potential returns based on monthly contributions. That is also the default SIP frequency currently supported on Kotak Neo. Daily and weekly SIP options are not available as of now.
SIP Vs Lumpsum Investment
There are two ways in which you can invest in a mutual fund scheme: SIP and lumpsum. One allows you to invest a small amount at regular intervals, while the other requires you to put in a huge amount at once.
The table below shows the difference between SIP and lumpsum, to help you choose the approach that suits you best.
For most retail investors, SIP is the preferred route because it removes the need to time the market and encourages disciplined investing. If you want to compare a one-time investment scenario, explore the lumpsum calculator.
What Is SIP (Systematic Investment Plan)?
A Systematic Investment Plan (SIP) is a mode of investing in mutual funds. SIP is a mode of investing a fixed amount regularly (usually every month). Each instalment buys units of the mutual fund at the current NAV (Net Asset Value).
Investors put in the same amount every time. If prices are lower, they get more units. If prices are higher, they get fewer. That is called rupee cost averaging. Most SIPs are set up via an auto-debit mandate linked to a bank account. Investors can start investing with a minimum of ₹100 per month and can continue investing for any tenure.
Types Of SIPs
Here are the most common types of SIPs to know about
Regular SIP | Regular interval fixed investment amount | First-time and salaried investors |
Step-Up SIP | SIP amount increases periodically | Investors expecting income growth |
Flexible SIP | The size of the contribution may vary | Small business owners and freelancers |
Perpetual SIP | No predefined end date | Long-term wealth creation |
Your earnings may rise over the years. Your SIP can too. Try a Step-Up SIP Calculator to understand how increasing your SIP amount each year can affect your wealth creation in the long run.
How Much Should You Invest In SIP?
There is no one-size-fits-all answer. You can invest as much as you want and are capable of in an SIP. A good rule of thumb is to set aside at least 20% of your monthly income for investing.
Use the SIP calculator above to explore how much your selected investment amount could potentially generate.
Benefits Of Investing In SIP
Power of Compounding
The real advantage of an SIP comes from compounding. Returns stay invested and continue generating growth. That is how a ₹10,000 monthly SIP earning 12% annually can grow to around ₹99 lakh in 20 years from a total contribution of ₹24 lakh.
Rupee Cost Averaging
When markets drop, SIPs buy more units. When prices climb, they buy fewer. Since contributions stay the same throughout, investors can reduce the impact of temporary volatility without changing their investment approach.
Tax Benefits Through ELSS SIPs
Investment in Equity Linked Savings Scheme (ELSS) is eligible for deduction under Section 80C of the Income Tax Act within applicable limits. An ELSS Calculator helps investors estimate their tax-saving investments.
Low Minimum Investment
For many mutual funds, ₹100 a month is enough to get started. That low barrier makes SIPs accessible to first-time investors as well as young earners.
SIP vs FD
Typical Returns | 10–15% p.a.(historical long-term range) | 6–7.5% p.a. |
Tax on Returns | LTCG rules apply | Taxable as per income slab |
Liquidity | Generally high | Premature withdrawal penalties may apply |
Risk | Market-linked | Capital protection focused |
SIP For Financial Goals – Retirement, Education, Home
Retirement Planning
Starting late has a cost. A ₹10,000 monthly SIP begun at age 35 may grow to around ₹98 lakh by retirement. Starting at 25 could take that figure to nearly ₹3.8 crore. That is a gap of about ₹2.82 crore, driven largely by the power of compounding. Use the SIP calculator above to estimate your required monthly investment.
Child’s Education
If you need ₹30 lakh for higher education in 13 years and expect a 12% annual return, the required SIP is approximately ₹10,500 per month. Use the SIP calculator above to compute your required monthly investment.
Home Down Payment
For a ₹20 lakh target in 6 years at a 10% expected return, the required SIP is approximately ₹18,800 per month. Use the SIP calculator above to compute your required monthly investment.
Start Your SIP With Kotak Neo
Invest in zero-commission direct mutual funds through the Kotak Neo app. Pick from 4,000+ fund options. Set up your SIP in just a few minutes. Then focus on consistency while tracking all your investments in one place.
Discover the Power of SIP for Smart Investments
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FAQs On SIP Calculator
SIP calculator is a simple online tool to calculate the future value of your investments. Enter your expected returns, SIP amount and investment tenure. The calculator then shows you your total investment, your projected earnings and the maturity value you could build up.
For many mutual funds, a monthly SIP starts somewhere between ₹100 and ₹1,000. That threshold varies by scheme. What matters is consistency. Even smaller amounts can compound into meaningful growth over the long run.
The required SIP depends on your target timeline and expected return. At a 12% annual return, reaching ₹1 crore in 20 years typically requires a monthly SIP of approximately ₹11,000. An SIP calculator can provide more precise estimates.
Starting an SIP does not lock you into the same contribution forever. With most fund houses, investors can increase or reduce the amount whenever needed. Many take the step-up route, raising investments bit by bit as earnings grow.
A minimum investment period of 5 years is generally recommended. If you want to retire, build wealth and educate your children, you are better off investing for 10 to 30 years to let the power of compounding work.
The majority of SIPs are flexible. These can be paused, altered or stopped at any time as per the process followed by the fund house. Then, as your financial position changes, you can change the contributions.
For long-term equity SIP projections, a 12% annual return is a common assumption. The reason is simple. Diversified equity mutual funds have, over long stretches of time, delivered returns in that range. That said, future performance is never guaranteed. Returns may end up higher or lower depending on the market and the fund chosen.
SIPs are often favoured by regular investors because they take some of the pressure off timing the market. Rupee cost averaging does much of the heavy lifting. Lumpsum investing may be more suitable if a substantial amount is already available and market volatility feels manageable.
