What is a SIP?
Investing a fixed amount every month is one of the simplest ways to build wealth over time, but it can be hard to picture what that habit actually adds up to years down the line. A Systematic Investment Plan, or SIP, lets you invest a set amount in a mutual fund at regular intervals — usually monthly — instead of putting in a large sum all at once. The SIP Calculator takes your monthly contribution, your expected rate of return, and your investment tenure, and projects what your investment could be worth by the end of that period.
How does the SIP Calculator work?
The calculator applies the standard SIP future value formula, which accounts for monthly contributions compounding over time:
FV = P × [((1 + r)^n − 1) / r] × (1 + r)
Here, P is your monthly investment amount, r is the expected monthly rate of return (your annual rate divided by 12), and n is the total number of months you invest for.
Worked example: Suppose you invest ₹5,000 every month for 10 years (120 months), expecting an annual return of 12% (a monthly rate of 1%). Applying the formula, your total investment of ₹6,00,000 (₹5,000 × 120 months) would grow to approximately ₹11,61,695 by the end of the tenure — meaning your estimated returns from compounding would be around ₹5,61,695, roughly 94% more than what you actually put in.
How do I use the Chola Securities SIP Calculator?
Using the calculator takes three steps.
- Step 1 — Enter your monthly SIP amount. This is the fixed amount you plan to invest each month.
- Step 2 — Enter your expected rate of return. Use a realistic annual return based on the type of fund you have in mind — for instance, the long-term historical average for equity, hybrid, or debt mutual funds.
- Step 3 — Enter your investment tenure. Choose how many years you intend to stay invested.
The calculator instantly shows your total invested amount, your estimated returns, and the projected maturity value, so you can adjust any input and see how the outcome changes.
Why use the SIP Calculator?
- See the long-term picture — understand what a habit of monthly investing could realistically grow into over years or decades.
- Compare contribution levels — check how increasing your monthly amount, even slightly, changes your final corpus.
- Understand the role of time — see how a longer tenure lets compounding do more of the work, even with the same monthly amount.
- Plan toward specific goals — work backwards from a target corpus to figure out roughly how much you'd need to invest each month.
The result is a projection based on the inputs and assumed return rate you provide, not a guaranteed outcome. Actual mutual fund returns vary with market performance, so use this as a planning tool rather than a precise forecast.