An intuitive tool for understanding how your monthly investments in mutual funds can increase over time is a SIP calculator. Simply input the amount of your investment, the number of years, and the anticipated yearly return.

The calculator then uses rupee cost averaging and the power of compounding to predict your future wealth. It provides a clear picture of what your investments could accomplish, whether you’re saving for retirement, a house, or a car.

Why Would You Want to Use a SIP Calculator?

To see how much money you will have in the future, enter your monthly SIP amount, investment period, and return rate. For instance, if you put ₹10,000 a month into an investment for 10 years at 12%, it could grow to about ₹23.2 lakh.

Reverse Planning: The calculator tells you how much to invest if you want to make ₹1 crore in 20 years. You’d need to put in about ₹8,730 every month to get a 13% return. But if you want to do it in 10 years, you need to save about ₹40,538 a month.

Quick and Easy: It saves time because you don’t have to do any math by hand. You just type in your information, and the results show up right away.

Test Different Scenarios: Change the amount of money you want to invest, how long you want to invest it, or the expected return to see which plan works best for you.

How It Works

The SIP calculator uses a standard mathematical formula:

M = P × ({[1 + i]^n – 1} / i) × (1 + i)

Where:

• M = Maturity amount
• P = Monthly investment
• n = Total number of months
• i = Monthly return rate (annual rate divided by 12)

If you invest ₹25,000 per month for 10 years at 12% annual return, the monthly return rate is about 0.95%. Your total investment of ₹30 lakh can grow to nearly ₹58.08 lakh, earning around ₹28.08 lakh in returns.

Monthly SIP	Tenure (Years)	Expected Return	Total Value	Returns Earned
₹10,000	10	12%	₹23.2 lakh	₹11.2 lakh
₹10,000	20	12%	₹99.9 lakh	₹75.9 lakh
₹25,000	10	12%	₹58.08 lakh	₹28.08 lakh

Why It Matters in 2025

In 2025, SIP calculators became very popular because they help investors see how their money is growing. AMFI says that SIP inflows hit ₹23,332 crore in July 2025, which shows that people have a lot of faith in mutual funds.

SBI Securities and Groww are two examples of platforms that offer easy-to-use SIP tools that make it easy for even new investors to plan.

It’s important to remember, though, that returns are not guaranteed and are linked to the market. Also, fees like exit loads and expense ratios can lower your final returns a little bit.

How to use it

• Type in the amount you want to invest each month (for example, ₹5,000).
• Choose how long you want to invest (for example, 15 years).
• Put in the expected annual return rate, which could be 12%.
• Click “Calculate” to see how much money you have invested, how much you expect to have in your corpus, and how much you expect to make.
• Most platforms also have charts that can help you see how your wealth is growing.