SIP Calculator

What formula does this tool use?

This tool uses FV = M × ((1 + i)^n − 1) ÷ i × (1 + i), where M is the monthly amount, i is the annual rate ÷ 12 and n is the number of months. The extra (1 + i) factor means each instalment is treated as invested at the start of its month.

Why does the timing matter?

An instalment made at the start of the month earns that month’s interest. Dividing this tool’s result by (1 + i) would give the end-of-month version. At 12% a year, i is 1%, so the start-of-month result is exactly 1% higher.

How are part years handled?

The duration is converted to whole months by rounding. Entering 2.55 years is treated as 31 months, and the result card shows that count. A duration of 0 or a monthly amount of 0 returns ₹0 for future value.

What happens at a 0% return?

There is no growth, so the future value equals the total invested. ₹10,000 a month for 3 years gives ₹3,60,000, estimated returns of ₹0 and wealth gained of 0.0%. A 0 in the rate field is used as 0, not replaced.

What does Wealth gained measure?

Wealth gained is estimated returns divided by total invested, times 100, over the whole duration, and is a cumulative figure rather than a yearly one. A 316.3% figure for 20 years does not mean 316.3% a year.

Is the rate the same as a fund’s reported return?

No. The tool takes a single nominal yearly rate, divides it by 12 and applies it every month. A fund’s published figure may be calculated by another method, and actual monthly movements are uneven, so this tool cannot reproduce a specific fund.

What costs and taxes are left out?

Expense ratio, exit load, stamp duty, taxes on gains and any change in the instalment amount over time are not modelled. There is also no step-up option. The result shows the arithmetic of equal monthly instalments at a constant rate.

How are the numbers displayed?

Amounts are rounded to the nearest rupee and grouped in the Indian style, such as ₹23,23,391 for ₹23.2 lakh. The tool is scoped to India for that reason.