Mutual Fund Returns Calculator
Project the future value of mutual fund investments — both SIP and lumpsum. Compare what your monthly SIP could grow into over 10, 20, or 30 years, or estimate returns on a one-time fund purchase. Built for Indian equity, hybrid, and debt mutual funds.
SIP future value
₹23,23,391
₹10,000/month × 10 yr at 12%
- Total invested
- ₹12,00,000
- Estimated returns
- ₹11,23,391
Invested vs estimated returns
Growth over time
Year-by-year breakdown
| Year | Invested | Estimated returns | Portfolio value |
|---|---|---|---|
| Year 1 | ₹1,20,000 | ₹8,093 | ₹1,28,093 |
| Year 2 | ₹2,40,000 | ₹32,432 | ₹2,72,432 |
| Year 3 | ₹3,60,000 | ₹75,076 | ₹4,35,076 |
| Year 4 | ₹4,80,000 | ₹1,38,348 | ₹6,18,348 |
| Year 5 | ₹6,00,000 | ₹2,24,864 | ₹8,24,864 |
| Year 6 | ₹7,20,000 | ₹3,37,570 | ₹10,57,570 |
| Year 7 | ₹8,40,000 | ₹4,79,790 | ₹13,19,790 |
| Year 8 | ₹9,60,000 | ₹6,55,266 | ₹16,15,266 |
| Year 9 | ₹10,80,000 | ₹8,68,215 | ₹19,48,215 |
| Year 10 | ₹12,00,000 | ₹11,23,391 | ₹23,23,391 |
How it works
Both SIP and lumpsum projections use compound interest, but with different formulas:
Lumpsum (annual compounding):
A = P × (1 + r) ^ t
SIP (monthly compounding, annuity-due):
A = P × ((1 + i)^N − 1) / i × (1 + i)
where i = r / 12 (monthly rate)
N = tenure in months
P = monthly SIP installmentFor SIPs the first installment compounds for the full tenure; the last for just one month. That's why a SIP earns less than a lumpsum of the same total amount over the same period — but it's also why SIPs are more forgiving when markets are volatile.
How to use
- Pick SIP or Lumpsum depending on how you invest.
- Enter the monthly SIP amount (or lumpsum amount). Most platforms allow SIPs from ₹500.
- Set the expected annual return. 10-12% is reasonable for equity funds; use 8-10% for conservative planning or hybrid funds.
- Choose your investment horizon. Equity funds need 5-7+ years to absorb volatility — longer is much better for compounding.
- Compare the "Invested vs Returns" donut: in a 20+ year SIP at 12%, returns typically dwarf the principal — that's the power of long-horizon compounding.
Frequently asked questions
How is SIP future value calculated?
SIPs use monthly compounding equivalent of the assumed annual return. Each monthly contribution grows for the remaining months: A = P × ((1+i)^N − 1) / i × (1+i), where P is the monthly SIP, i is the monthly rate (annual ÷ 12 ÷ 100), and N is the tenure in months. We multiply by (1+i) because deposits are made at the start of each month (annuity-due). This matches Groww, ClearTax, and ET Money SIP calculators.
SIP or lumpsum — which is better?
Mathematically, lumpsum wins if you have the money up front and the market only goes up. In reality, markets are volatile. SIP averages your purchase price across cycles (rupee-cost averaging), so you buy more units when prices are low and fewer when high — this typically beats trying to time the market. SIPs also enforce a savings habit. Use the toggle above to compare directly: a ₹12L lumpsum at 12% for 10 years gives ~₹37L; the same ₹12L spread as ₹10K/month SIP gives ~₹23L because not all money was invested from day one.
What return should I assume?
Long-run averages for diversified Indian equity mutual funds: 10-13% (CAGR over 15-20 years for index, large-cap, or flexi-cap funds). Hybrid: 8-11%. Debt: 6-8%. Use 12% as the default for equity-heavy portfolios with a 10+ year horizon. For shorter horizons or conservative planning, drop to 8-10%. Don't assume 15%+ unless you have strong reasons — it's possible but uncommon.
Can SIP returns be negative?
Yes — in any short period (1-3 years), market volatility can leave your SIP value below total invested. Equity SIPs of 5+ years rarely show negative absolute returns historically, and 10+ year SIPs in diversified funds have never been negative in Indian market history. The longer your horizon, the more reliable equity returns become.
How is mutual fund growth taxed?
Equity funds (≥65% equity): LTCG at 12.5% above ₹1.25L per year for units held >1 year (post-Budget 2024); STCG at 20% for ≤1 year. Debt funds (post April 2023): all gains taxed at slab rate, no indexation, no LTCG benefit. Hybrid funds: equity-oriented hybrids (>65% equity) follow equity rules; balanced/conservative hybrids follow debt rules. The future value shown here is pre-tax — your hand-take will be lower.
Should I increase my SIP every year?
Yes, ideally. A 'step-up SIP' that grows 10% annually (matching salary growth) significantly outperforms a flat SIP because you're investing more during your peak earning years. Some platforms offer auto step-up. Even a manual annual increase makes a huge difference: ₹10K/month with 10% annual step-up over 25 years at 12% beats a flat ₹25K/month over the same period.
Is XIRR the same as the return shown here?
No. XIRR is for irregular cashflows (lumpsum top-ups, partial redemptions, missed SIPs). For a clean monthly SIP at a constant amount, the assumed annual return here approximates XIRR closely. For real-world portfolios with unequal contributions, use the XIRR calculator — it solves for the actual rate that makes all your cashflows balance.