SIP Calculator
A SIP (systematic investment plan) lets you invest a fixed amount in a mutual fund every month. The Gunaka SIP calculator estimates the value of those instalments at the yearly return you assume, so you can see how amount, time and step-up work together. It does not predict what any fund will actually earn.
How the estimate is worked out
The calculator treats each instalment as paid at the start of the month. The yearly return you enter is divided by 12 to get a monthly rate i, and each month the running value becomes (previous value + instalment) x (1 + i). If you add a yearly step-up, the instalment is raised by that percentage at the end of every 12 months. The invested amount is simply the total of all instalments.
A worked example you can check
Invest Rs 10,000 every month for 10 years and assume 12% a year. That is 120 instalments and Rs 12,00,000 invested. At the assumed return the estimated value is about Rs 23,23,391, so the estimated gain is about Rs 11,23,391. The 12% is an assumption chosen for the example. Real returns of market-linked funds move up and down and can be lower than invested money.
Ways to use the calculator sensibly
- Try several return values, such as a low, a middle and a high case, and plan with the low one.
- Start early. The same monthly amount invested for more years gives compounding more time to work.
- Use the step-up option if you expect your income to grow, and see how a 5% or 10% yearly raise changes the result.
- Compare the final amount with a goal. The Gunaka retirement goal planner works backwards from a target to the monthly amount needed.
Results are estimates, not a promise or a forecast, and not investment advice. Read the scheme documents of any fund before investing.
Frequently asked questions
How is SIP return calculated in this calculator?
The yearly return is divided by 12, and each month the running value is multiplied by one plus that monthly rate after the instalment is added.
Is the SIP result guaranteed?
No. Mutual fund returns are market-linked and can vary, so the calculator only shows what would happen at the return you assume.
What is a step-up SIP?
It is a SIP where the monthly amount increases by a fixed percentage every year, for example when your salary rises. You can enter the step-up in the Gunaka calculator.
How much will Rs 10,000 a month become in 10 years?
At an assumed 12% a year, about Rs 23.2 lakh on Rs 12 lakh invested, as an estimate only. Change the assumed return to see other cases.
Does the calculator include tax or fund charges?
No. Taxes, expense ratios and exit loads are not included, so actual outcomes can be lower.