{"id":12247,"date":"2026-05-22T13:39:31","date_gmt":"2026-05-22T13:39:31","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/sip-calculator\/"},"modified":"2026-05-22T13:39:31","modified_gmt":"2026-05-22T13:39:31","slug":"sip-calculator","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/sip-calculator\/","title":{"rendered":"SIP Calculator"},"content":{"rendered":"<p>A <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sip-calculator\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">SIP Calculator<\/a> is a simple online tool that estimates how much wealth your monthly <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/sip\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>SIP<\/a> can build over a target horizon, given an assumed annual return. Most Indian <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/broker\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">broker<\/a>s, AMCs and personal-finance websites offer free SIP calculators. Used wisely, they help you plan goals &#x2014; retirement, child&#x2019;s education, home down payment &#x2014; and decide how much to invest each month.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>SIP calculators estimate future value of a monthly investment given assumed returns.<\/li>\n<li>Inputs: monthly SIP amount, period (years), expected annual return.<\/li>\n<li>Outputs: total invested, expected returns, expected final corpus.<\/li>\n<li>Compounding is the magic ingredient &#x2014; small differences in tenure or return have huge impact.<\/li>\n<li>Use realistic return assumptions (10&#x2013;12% for <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/equity\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">equity<\/a> SIPs in long term).<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"how-a-sip-calculator-works\">How a SIP calculator works<\/h2>\n<p>It uses the standard formula for future value of an annuity:<\/p>\n<p>FV = P &#xD7; [((1 + r)^n &#x2212; 1) \/ r] &#xD7; (1 + r), where P = monthly SIP, r = monthly return (annual return \/ 12), and n = number of months. The result is the corpus at the end of the SIP period assuming a steady return.<\/p>\n<h2 id=\"worked-example\">Worked example<\/h2>\n<table>\n<tr>\n<th>SIP \/ month<\/th>\n<th>Years<\/th>\n<th>Return %<\/th>\n<th>Estimated corpus<\/th>\n<\/tr>\n<tr>\n<td>&#x20B9;5,000<\/td>\n<td>10<\/td>\n<td>12%<\/td>\n<td>~&#x20B9;11.6 lakh<\/td>\n<\/tr>\n<tr>\n<td>&#x20B9;5,000<\/td>\n<td>20<\/td>\n<td>12%<\/td>\n<td>~&#x20B9;50 lakh<\/td>\n<\/tr>\n<tr>\n<td>&#x20B9;10,000<\/td>\n<td>20<\/td>\n<td>12%<\/td>\n<td>~&#x20B9;1 crore<\/td>\n<\/tr>\n<tr>\n<td>&#x20B9;15,000<\/td>\n<td>25<\/td>\n<td>12%<\/td>\n<td>~&#x20B9;2.8 crore<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"why-compounding-compounds\">Why compounding compounds<\/h2>\n<p>Most of the corpus in a long-term SIP is gains, not principal. A 20-year SIP can have gains 3&#x2013;4&#xD7; the invested amount. Time is the most underrated input in any SIP calculation &#x2014; doubling the tenure can quadruple the final corpus.<\/p>\n<h2 id=\"common-mistakes-when-using-sip-calculators\">Common mistakes when using SIP calculators<\/h2>\n<ul>\n<li>Using over-optimistic return assumptions (15&#x2013;20% sustained returns are unrealistic).<\/li>\n<li>Ignoring <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/inflation\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">inflation<\/a> &#x2014; a &#x20B9;1 crore corpus in 20 years is worth less in today&#x2019;s rupees.<\/li>\n<li>Forgetting that SIPs can be increased over time.<\/li>\n<li>Treating estimates as guarantees &#x2014; actual returns vary year to year.<\/li>\n<\/ul>\n<h2 id=\"how-to-plan-with-a-sip-calculator\">How to plan with a SIP calculator<\/h2>\n<ol>\n<li>Define your goal in today&#x2019;s rupees (e.g., &#x20B9;1 crore retirement).<\/li>\n<li>Adjust for inflation to get the future value of that goal.<\/li>\n<li>Use the calculator to find the monthly SIP needed.<\/li>\n<li>Build in a step-up &#x2014; increase SIP each year as income grows.<\/li>\n<li>Re-evaluate periodically and adjust based on actual returns.<\/li>\n<\/ol>\n<h2 id=\"beyond-plain-sip-calculators\">Beyond plain SIP calculators<\/h2>\n<p>Advanced calculators allow step-up SIPs (annual percentage increase), goal-based planning, and what-if scenarios. Lemonn&#x2019;s SIP and goal calculators are useful for visualising long-term plans. Many investors also use Monte Carlo simulators to see how variable returns affect corpus.<\/p>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"what-return-should-i-assume-in-a-sip-calculator\">What return should I assume in a SIP calculator?<\/h3>\n<p>For equity funds, 10&#x2013;12% CAGR is a reasonable long-term assumption. Debt fund SIPs are typically 6&#x2013;8%.<\/p>\n<h3 id=\"should-i-include-inflation\">Should I include inflation?<\/h3>\n<p>Yes. Calculate the goal in future value or discount the corpus to today&#x2019;s rupees.<\/p>\n<h3 id=\"is-the-calculator-s-output-guaranteed\">Is the calculator&#x2019;s output guaranteed?<\/h3>\n<p>No. It is an estimate based on assumed returns; actual results will vary.<\/p>\n<h3 id=\"does-lemonn-have-a-sip-calculator\">Does Lemonn have a SIP calculator?<\/h3>\n<p>Yes &#x2014; Lemonn offers SIP and goal calculators alongside fund discovery and tracking.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A SIP Calculator is a simple online tool that estimates how much wealth your monthly SIP can build over a target horizon, given an assumed annual return. Most Indian brokers, AMCs and personal-finance websites offer free SIP calculators. Used wisely, they help you plan goals &#x2014; retirement, child&#x2019;s education, home down payment &#x2014; and decide [&#x2026;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12247","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"A SIP Calculator is a simple online tool that estimates how much wealth your monthly SIP can build over a target horizon, given an assumed annual return. Most Indian brokers, AMCs and personal-finance websites offer free SIP calculators. Used wisely, they help you plan goals &#x2014; retirement, child&#x2019;s education, home down payment &#x2014; and decide&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12247\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}