SIP Calculator - Calculate SIP Returns & Invest in SIP

A Systematic Investment Plan (SIP) calculator is an online financial tool that can help to calculate the returns you would earn on your SIP investments. The calculator also tells you how much you would need to invest every month to earn a target corpus. Simply put, it provides a roadmap to achieve your various financial goals.

Invested Amount Resultant Amount

Invested Amount

Resultant Amount

By end of the year	Invested Amount	Resultant Amount
2025	₹6000	₹6383
2026	₹12000	₹13532
2027	₹18000	₹21540
2028	₹24000	₹30508
2029	₹30000	₹40552
2030	₹36000	₹51801
2031	₹42000	₹64401
2032	₹48000	₹78512
2033	₹54000	₹94317
2034	₹60000	₹112018
2035	₹66000	₹131843
2036	₹72000	₹154048
2037	₹78000	₹178917
2038	₹84000	₹206770
2039	₹90000	₹237966
2040	₹96000	₹272905
2041	₹102000	₹312037
2042	₹108000	₹355864
2043	₹114000	₹404951
2044	₹120000	₹459929

Invested Amount

₹1,20,000

Resultant Amount

₹4,59,929

SIP Calculator

Franklin Templeton’s SIP (Systematic Investment Plan) calculator is a tool that allows investors to estimate the future value of regular investments in mutual funds, by inputting details like monthly SIP amount, investment duration, and expected returns.

What is an SIP Calculator?

A systematic investment plan calculator is a simple online tool that helps investors calculate the potential returns from their systematic investment plan or SIP investments in mutual funds. SIPs allow investors to invest small, regular amounts in mutual funds at fixed intervals, usually monthly or quarterly. Since SIPs involve numerous small investments over several years, manually calculating the expected returns can be complicated.

An SIP calculator makes this calculation effortless. It allows users to enter basic details like the amount invested in each period, the investment duration or tenure, and an estimated annual rate of return from the mutual funds. By inputting just this basic information, the SIP calculator uses mathematical formulae to forecast the total value of the SIP investment at regular intervals and maturity. This includes estimating both, the returns earned over the investment period and the total original capital invested through SIPs.

The SIP calculator provides a straightforward way to understand how much the investment may be worth in the future. This helps investors assess if their goal of creating a certain corpus is achievable through SIPs. It also allows comparing returns from different mutual funds to choose appropriate funds for one's goals and risk profile.

How can an SIP Return Calculator help you?

An SIP return calculator can assist investors in the following ways.

Estimating future returns: The calculator provides an estimated value of the returns that can be generated on one's SIP investments over different periods. This gives an idea of how much the investment will grow and if it can help achieve one's financial objectives.
Planning investments: By adding details like the amount to be invested regularly through SIPs and the expected rate of return, the calculator shows the probable corpus that will be accumulated at regular intervals and at different timelines like 5, 10 or 15 years. This helps in properly planning one's investments.
Comparing investment options: The SIP return calculator allows comparing returns projected from different mutual fund options. This facilitates choosing funds that best suit one's risk appetite and time horizon. Monitoring investments: One can use the calculator regularly to track if their SIP investments are on track to generate the targeted returns to meet goals. This helps monitor investments periodically.
Assessing inflation impact: SIP calculators provide the flexibility to factor in estimated inflation rates. This gives a real view of how much more one may need to invest regularly to attain the same inflation-adjusted target amounts.

How does a Systematic Investment Plan Calculator work?

An SIP calculator works using mathematical formulae to project the future value of one's SIP investments based on certain inputs like the monthly investment amount, expected rate of return and number of investment periods or years. One of the key inputs is the monthly SIP amount that the user regularly contributes. This acts as the principal investment that compounding works on.

The user also needs to specify the anticipated annual rate of return from the mutual fund, which the calculator uses to calculate periodic and annualised returns. Though past returns may not be indicative of future performance, this provides an estimated growth projection. Next, the tenor or duration of the SIP needs to be entered in years to calculate returns over different periods. SIP calculators provide estimates for 5, 10, 15, and 20 years to help investors choose suitable timelines.

SIP calculators also allow selecting a monthly or quarterly frequency of SIP investments, with monthly being more common. The period is the number of months or quarters over which the returns are computed. Using the inputs, the SIP interest calculator applies the compound interest formula to calculate the future value. It totals the returns generated each period on the principal added through SIPs as well as the preceding periods' returns. This gives the projected corpus at regular intervals.

Let’s understand SIP Calculators with a live example:

Particulars	Amount (INR)
Monthly Investment Amount in SIP	₹ 25,000
Investment horizon (Tenure of the SIP investment)	10 years
Expected annual rate of return	12%

SIP Calculator Formula: Value of investment on maturity = P * ((1 + r)^n – 1)/r) * (1 + r * type)

In the above formula:

P	Monthly Investment Amount in SIP	₹ 25,000
r	Expected Annualised Rate: 12% Monthly rate of return i.e. Rate = ((1+12%)^(1/12)-1)	0.95%
n	Total number of months across which you are investing i.e.10 years * 12	120
Type	The number 0 or 1 indicates when payments are due. In this case, 1 is assigned presuming payments are made at the beginning of the month.

Basis the above formula:

Projected value of investment on maturity (A)	₹ 56,00,987
Total amount invested (B)	₹ 30,00,000
Potential returns on SIP (A-B)	₹ 26,00,987

Based on the inputs and calculation formula, the SIP calculator provides the potential corpus generated, the total investor contribution, and the estimated returns over the SIP tenure.

You can use this tool to simulate various combinations of contribution frequency (daily, weekly, monthly, or quarterly), investment duration, and expected returns—helping you better understand how to reach your financial goals.

In this example, a total contribution of ₹30 lakhs over the investment tenure grows to ₹58.08 lakhs, nearly doubling in value over a 10-year period.

Below are a few more illustrations based on the SIP calculator formula explained above:

Monthly SIP Amount	Investment horizon	Expected rate of return	Total amount invested	Projected value of investment on maturity	Potential returns
₹ 5,000	10	12%	₹ 6,00,000	₹ 11,20,179	₹ 5,20,179
₹ 10,000	10	12%	₹ 12,00,000	₹ 22,40,359	₹ 10,40,359
₹ 25,000	10	12%	₹ 30,00,000	₹ 56,00,987	₹ 26,00,987
₹ 50,000	10	12%	₹ 60,00,000	₹ 1,12,01,794	₹ 52,01,794

The expected rate of return is in line with AMFI Best Practices Guidelines Circular No. 109 / 2023-24 dated November 01, 2023 and circular issued thereafter.

Past performance may or may not be sustained in future and is not a guarantee of future returns.

Advantages of an SIP Calculator

SIP calculators enable investors to estimate future returns from their SIPs under different scenarios. By inputting varying rates of assumed return, the calculator allows comparing the growth prospects that can be achieved through SIP investments in a mutual fund.
An SIP return calculator aids in effective financial planning. It allows inputting varying monthly SIP amounts and durations to estimate the potential corpus that can be accumulated. This helps set realistic savings goals through SIPs and plan out monthly investments required to achieve different targets over time. Comparing outputs for diverse timelines from 5-20 years assists in choosing the most suitable duration for one's requirements.
An SIP calculator also simplifies comparing returns projected from investing in different mutual fund options. This facilitates selecting the most appropriate investment avenue based on the target amount needing to be accumulated. It allows filtering out funds less likely to provide the returns required to meet one's monetary goals within the planned tenor.
SIP interest calculators facilitate periodic monitoring of investments. One can track if their actual returns are commensurate with estimates from the calculator. This helps assess if additional investments may be needed to achieve the targeted corpus or if the SIP may require tweaking.

How to use Franklin's SIP Calculator?

Franklin Templeton offers an online SIP calculator that is simple to use.

Choose between ‘I want to invest’ or ‘I know my goal’ option. The former is useful if investors have a monthly investment amount in mind and the latter is useful if they have a goal in mind.
If opting for the ‘I want to invest’ option, choose the monthly investment amount, number of years, and expected rate of return to see the results.
If opting for the ‘I know my goal’ option, input the goal amount, number of years, and expected rate of return to see the results.

Frequently Asked Questions

The amount you can invest in an SIP depends on your financial situation, income, expenses and investment goals. An SIP calculator allows you to input different monthly investment amounts and will calculate the total investment and projected returns over time. Most SIP calculators allow you to model investment amounts from as low as Rs. 100 per month up to any amount you wish to invest.

Yes, an SIP return rate calculator can factor in and calculate negative returns. These calculators allow you to input an expected rate of return, which could be positive or negative. So, if you expect a -5% return, for example, the calculator will show the impact of negative returns on your total investment amount and future value.

Top-Up SIP
In a top-up SIP, you can change the amount of SIP instalment by a fixed amount at pre-defined intervals.
For example, if you have been investing Rs. 1,000 in an equity fund every month, you can increase your investment to Rs. 1,500 through the top-up option. This is an easy way to contribute a higher amount towards your goals as your income rises over the years.
Flexible SIP
Until now, you have seen that SIP means investing a fixed amount in a mutual fund in a systematic manner. But, what if it may not be possible to invest the same amount each month? In such a scenario, you can consider investing through a flexible SIP. Here, you can alter your monthly investments as per your cash flows. In case of a financial crunch, you can reduce the SIP amount. And when you have a high cash flow, you can invest a more significant amount. This is a suitable option for entrepreneurs who don't earn a fixed amount each month.
Perpetual SIP
Investors generally opt to invest in a mutual fund for a fixed period. This can be for six months, three years, five years or even ten years. But what if you don't want to set an end date to your SIP investment? This is possible when you choose the perpetual option. Here, you can continue investing in the fund through SIP for as long as you wish, until you provide specific instructions to the AMC to cease it. And when you have created an adequate corpus to reach your financial goals, you can redeem the amount.

There are several financial benefits for investors when they choose to invest in mutual funds online through SIPs. Here are a few important ones:

Rupee cost averaging
When you invest through SIP, you don't have to worry about timing the market. SIP investments ensure that you purchase more fund units when the market is low and lesser units when the market is high; this is known as rupee cost averaging. It helps investors generate relatively reasonable returns without worrying about market volatility.
Power of compounding
Compounding is the process of earning income on your principal investment plus the income earned. For instance, if you invest Rs. 10,000 in a mutual fund (at 10% interest rate per annum), you gain an interest of Rs. 1,000 at the end of the year. Now, you start making interest not just on the original Rs. 10,000 you invested but also on the Rs. 1,000 you have received as interest.
Over time, this can grow into a large corpus of money. Consider a situation where you invest Rs. 5,000 in a mutual fund offering annual returns of 12%. If you invest in this fund for 15 years, you will earn a sum of Rs. 25 lakhs. Continue investing for five more years, and you are likely to achieve a corpus of Rs. 50 lakhs. Another five years and your corpus increase to Rs. 95 lakhs! This is the power of compounding. The longer you invest, the better could be your returns.
Simple to invest
Investing in mutual funds through SIPs can be easy. When you decide the amount you wish to invest, merely provide an auto-debit instruction to your bank account. This transfers the investment amount directly to the fund. They are also easy to monitor because the AMC provides you with all the necessary details of your investment clearly and concisely.
Ideal tool for financial planning
You may have various goals you wish to achieve in life. For instance, you may have short-term goals like travelling to all the eight wonders of the world in a single tour. On the other hand, you could also have longer financial goals like buying a house or starting your own business 10 years down the line. When you invest steadily in different mutual funds, you can hope to achieve all your financial goals at the right time in life.

If you are wondering how to start SIP, here are three simple steps for you:

Identify a mutual fund for your investment
You can choose from several mutual funds in the market. Select a fund based on your investment goals and risk appetite. Complete the KYC process and submit an application form online or offline to the AMC to begin your investment journey.
Choose the investment duration
Once you select a fund, you need to decide how long you wish to remain invested. The duration could range anywhere between 6 months to 10 years, based on your investment goals.
Invest regularly
Select a date you wish to invest every month. Investing through SIPs is a convenient and straightforward method to create long-term wealth. That's why it is important to stay invested for the entire investment duration.

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Investing through SIPs

One-time KYC (Know Your Customer) : One-time KYC registration is mandatory to invest in mutual funds. You can complete the same by submitting the following at any of our branches or collection centres: a) Duly filled and signed Central-KYC application form. b) Proof of Identity: Any document noticed by the central government. c) Proof of Address: Same as identity proof (except PAN). d) Recent Passport Size Photograph. Copies of all documents submitted must be self-attested by the applicant and accompanied by originals for verification. You may also avail our Online KYC Registration facility while opening an online account with us, for more details please visit https://scores.sebi.gov.in in our website www.franklintempletonindia.com. In case you are KYC verified and want to update any information, please submit a completed KYC details change form with the required self-attested documents as proof to our nearest branch or collection centre
Details of SEBI registered Mutual Funds: Investors must deal/ invest only with SEBI registered Mutual Funds. Details available on the SEBI website www.sebi.gov.in.
Complaint Redressal: Investors can reach us on our toll-free helpline 1800 425 4255 OR write to us at [email protected]. For escalation, write to us at [email protected]; [email protected] or lodge your grievance with SEBI through their SCORES (SEBI Complaint Redress System) Portal at https://scores.sebi.gov.in or you may file any complaint on the Smart ODR on https://smartodr.in/login.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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