Here's how to calculate future value of your SIP

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Key points

• (Catch all the Mutual Fund News, Breaking News, Budget 2024 Events and Latest News Updates on The Economic Times.).
• Explained: Want to calculate the future value of your Rs 10, 000 SIP?
• Suppose an investor starts a monthly SIP of Rs 10, 000 for five years.
• The future value of this investment will be Rs 20.48 lakh after 10 years.
• The future value of this investment will be Rs 27.52 lakh after 10 years.

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Explained: Want to calculate the future value of your Rs 10, 000 SIP? Here's the formula.

Explained: Want to calculate the future value of your Rs 10, 000 SIP? Here's the formula. ET OnlineLast Updated: Aug 29, 2026, 11: 42: 00 PM IST.

In practice, a Rs 10, 000 monthly SIP can grow into a sizeable corpus over time, but the final value depends on the investment duration and projected returns. Here is how investors can employ the future value formula to estimate their SIP corpus at different return rates. Listen to this article in summarized format. Unlock AI Briefing and Premium Content. New Year Offer 24 Hours Left. Subscribe Now Already a member? Sign In. Free Mutual Funds Workshop.

After session their regular expenses and setting aside capital for emergencies, mutual fund investors often set aside a fixed amount each month for investments through a systematic investment plan (SIP). Suppose an investor starts a monthly SIP of Rs 10, 000 for five years. They may want to know how much this investment could grow to by the end of the period. Investors can employ the future value formula to estimate the potential value of their SIP investments over a given period. Meanwhile, the formula provides an indicative estimate of how much their regular monthly investments could accumulate, based on an assumed rate of return. Future Value (FV) = P * (1+I)/I.

In this formula: FV = Future value or the amount you obtain at maturity. Live Events.

P = Amount you invest through SIP I = Compounded rate of return n = Investment duration in months Example: A is investing in a mutual fund scheme through a monthly systematic investment plan (SIP) of Rs 10, 000 for an investment period of 10 years with an projected rate of return of 10%.

In practice, the future value of this investment will be Rs 20.48 lakh after 10 years. Example: A is investing in a mutual fund scheme through a monthly systematic investment plan (SIP) of Rs 10, 000 for an investment period of 10 years with an projected rate of return of 12%.

In practice, the future value of this investment will be Rs 27.52 lakh after 10 years. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message ET Mutual Funds on Facebook/Twitter. We will obtain them answered by our panel of experts. Do share your questions at [email protected] along with your age, risk profile, and Twitter handle. Mutual fundsmutual fund newsvaluefuture valueSIPmonthly investmentemergency fund.

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In short, here' s how to calculate future value of your SIP is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.