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How to Calculate SIP Returns

6 min read · Updated September 26, 2026 · by Thomas M, Registered Investment Adviser (South Carolina)

How to Calculate SIP Returns – feature image

A SIP invests the same amount every month, so its value is a sum of many small compounding investments. This guide shows the formula, how a step-up changes it and how to work backwards from a goal. Mutual fund investments are subject to market risks; all returns here are assumptions.

The SIP formula

Value = P × [((1 + i)n − 1) ÷ i] × (1 + i), with P the monthly amount, i the monthly rate (annual ÷ 12) and n the months. The final (1 + i) reflects investing at the start of each month.

Worked example

₹5,000 a month for 10 years at an assumed 12%: you invest ₹6,00,000.00 and the SIP could grow to ₹11,61,695.38, estimated returns ₹5,61,695.38.

Step-up SIP

Raising the SIP 10% each year from ₹10,000 for 15 years gives ₹86,83,849.43 compared with ₹50,45,760.00 for a flat SIP.

Working back from a goal

To reach ₹1 crore in 15 years at 12% you need about ₹19,818.62 a month. If prices rise 6% a year, the goal in today’s money needs ₹47,496.48.

Reality check

Actual returns vary and can be negative over short periods. Test a lower return, keep an emergency fund and read scheme documents. Use the SIP calculator to experiment.

Practice questions

Test yourself, then tap to check. Answers are calculated by the tools linked below.

  1. ₹10,000 a month for 15 years at 12%. What is the maturity value?
    Show answer

    Maturity value: ₹50,45,760.00 · Estimated returns: ₹32,45,760.00

  2. ₹8,000 a month rising 8% a year for 20 years at 11%. What is the corpus?
    Show answer

    Maturity value with step-up: ₹1,21,95,191.78 · Estimated returns: ₹78,02,043.21 · Extra corpus from stepping up: ₹52,06,607.35

  3. What monthly SIP builds ₹50 lakh in 12 years at 12%?
    Show answer

    Monthly SIP needed: ₹15,515.80

Frequently asked questions

How is SIP return calculated?

With the future-value formula for regular investments, using the monthly rate and the number of instalments.

What return should I assume?

Use conservative figures for planning; equity returns are uncertain.

What is a step-up SIP?

A SIP that increases by a set percentage each year.

Are SIP returns guaranteed?

No. Mutual fund investments are subject to market risks.

Try it yourself

SIP CalculatorEstimate the maturity value of a monthly SIP, the amount invested and the returns, with a year-by-year table.Step-Up SIP CalculatorSee how increasing your SIP every year grows your corpus compared with a flat SIP.SIP Goal CalculatorFind the monthly SIP you need to reach a target amount, with optional step-up and inflation.SWP CalculatorSee how long a corpus lasts with monthly withdrawals, or the level monthly income it can fund.

Keep learning

How Compound Interest Works7 min readHow to Calculate Retirement Savings8 min readHow to Calculate CAGR and ROI6 min read

Reviewed by Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Spot a mistake? Tell us. See our editorial policy. Finance content is educational and not financial advice; see the disclaimer.