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SIP Investment & Wealth Calculator
Estimate future wealth accumulation through monthly mutual fund SIPs with compound interest growth and optional Step-up salary increments.
₹
₹500Amount deposited every month₹500,000
%
1%Historical equity mutual fund return (12-15%)30%
Years
1 YearsHolding horizon for compounding40 Years
Total Projected Wealth
Maturity Value₹50,45,760
Future Value₹50.46L
Total Invested:36%
Est. Returns:64%
Future Value (10 yrs)₹18,00,000
Estimated Wealth Gain (Returns)+ ₹32,45,760
Total Expected Value₹50,45,760
Yearly Compounding Growth Schedule
Visualizing the exponential effect of compound interest on your capital.
Formula & Mathematical Definition
The future maturity value of a standard Systematic Investment Plan (SIP) compounded monthly is given by:
FV = P × [((1 + i)^n - 1) ÷ i] × (1 + i)- FV = Future Projected Maturity Value
- P = Monthly investment instalment amount
- i = Monthly compounding rate (Annual CAGR ÷ 12 ÷ 100)
- n = Total number of monthly installments (Years × 12)
How to Use & Step-by-Step Example
- Set Monthly Investment: Choose how much you plan to invest every month (e.g. ₹5,000 to ₹50,000+).
- Choose Expected Return (CAGR): For diversified equity funds, 12% to 14% is a standard benchmark.
- Select Time Horizon: Long-term compounding shines best at 10, 15, or 20+ years.
- Add Annual Step-Up: If you receive yearly annual salary appraisals, enable a 5%–10% Step-Up to see your wealth explode.
Standard Reference Slabs & Benchmarks
| Asset Class | Average Expected Return (CAGR) | Risk Level |
|---|---|---|
| Equity Mutual Funds (Nifty 50 / Large Cap) | 11% – 13% | Moderate |
| Mid-Cap & Small-Cap Funds | 14% – 18% | High |
| Hybrid / Balanced Advantage Funds | 10% – 12% | Low to Moderate |
| Fixed Deposit / Debt Funds | 6.5% – 7.5% | Very Low |
Frequently Asked Questions (FAQ)
A SIP allows investors to invest a fixed sum regularly (monthly or quarterly) into a mutual fund scheme. It promotes financial discipline and leverages rupee cost averaging and power of compounding.