SIP Calculator for Investment Calculation
Use our free SIP Calculator to estimate the future value of your monthly SIP investments. Simply enter your monthly investment amount, expected annual return rate, and investment duration to calculate your estimated maturity amount instantly.
Introduction to SIP Calculator
SIP or Systematic Investment Plan is one of the most popular and disciplined ways to invest regularly from your monthly salary. With Runtime HRMS SIP Calculator, estimate your SIP maturity amount. Put in three numbers — monthly investment amount, expected return rate, and time period — and get your maturity value in seconds.
What is a SIP Calculator?
A Lumpsum Calculator is a free online tool that helps you estimate the future value of your monthly SIP investments based on three inputs — monthly investment amount, expected annual return rate, and investment duration in years.
Let understand first what SIP is.
1. What is SIP?
SIP stands for Systematic Investment Plan. It is a method of investing a fixed amount regularly — typically every month — into a mutual fund or other financial instrument. Many peoples prefer a fixed amount for monthly saving and for that this is the best option. There is hard core rule of SIP amount, you can start even with ₹500 per month regularly over 10-15 years. And see the power of compounding.
2. SIP Calculation Formula
SIP returns are calculated using the future value of annuity formula:
M = P × [{(1 + r)^n – 1} / r] × (1 + r)
Where:
M = Maturity amount
P = Monthly SIP amount
r = Monthly return rate (Annual rate ÷ 12 ÷ 100)
n = Total number of months (Years × 12)
Example:
Monthly SIP: ₹5,000
Expected return: 12% per annum
Duration: 10 years (120 months)
r = 12 ÷ 12 ÷ 100 = 0.01
n = 120 months
M = ₹5,000 × [{(1.01)^120 – 1} / 0.01] × (1.01)
= ₹5,000 × 230.04
= ₹11,61,695
Total Invested = ₹5,000 × 120
= ₹6,00,000
Total Returns = ₹11,61,695 – ₹6,00,000 = ₹5,61,695
3. SIP vs Lumpsum — Which is Better?
Both are good, it all depends upon what’s your current financial.
Lumpsum is better when:
- You have a large amount available right now (bonus, gratuity, inheritance) –
- Markets are at a low point and expected to recover –
- You have a long investment horizon of 5+ years
SIP is better when:
- You want to invest regularly from monthly salary –
- You want to average out market volatility –
- You are a first-time investor building discipline
4. Tax on SIP Returns
Tax on SIP investments depends on the type of fund:
Equity Mutual Funds:
- Short Term Capital Gains (held less than 1 year) — 20% tax –
- Long Term Capital Gains (held more than 1 year) — 12.5% tax on gains above ₹1.25 lakh per year
Debt Mutual Funds:
All gains taxed as per income tax slab rate regardless of holding period
ELSS (Tax Saving Mutual Funds):
- Investments up to ₹1.5 lakh per year eligible for Section 80C deduction under old tax regime
- Lock-in period of 3 years per installment
- LTCG tax of 12.5% on gains above ₹1.25 lakh
5. How to Use the Runtime Lumpsum Calculator
Using the Runtime HRMS Lumpsum Calculator is simple:
- Step 1 — Enter your monthly SIP amount (₹)
- Step 2 — Enter expected annual return rate (%)
- Step 3 — Enter investment duration (years)
- Step 4 — Click Calculate
The calculator instantly shows you:
- Total maturity amount
- Total returns earned
- Total amount invested
No registration required. Completely free to use.
Check more details with: SEBI
Conclusion
Whether you are just starting your investment journey or planning for a specific financial goal — knowing the future value of your monthly SIP helps you stay on track and invest with confidence. Use the Runtime Lumpsum Calculator to get accurate maturity estimates in just a few seconds. And if you want to go beyond calculators — automate payroll, manage full and final settlements, and stay compliant without the manual effort then book a free demo today with Runtime HRMS.
To know more about the Payroll read the following article – Payroll Formulas Cheat Sheet for HR Managers
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