A SIP (Systematic Investment Plan) invests a fixed amount every month. To estimate what it will grow to, Excel’s FV function does the whole calculation in one formula. Below are the steps, a free Excel template, and an online SIP calculator.
Step 1: Calculate the future value with FV
Enter the monthly amount, the expected yearly return and the number of years, then use FV:
=FV(C3/12,C4*12,-C2,0,1)
₹5,000 a month for 10 years at 12% grows to about ₹1,161,695. In Indian format: ₹11,61,695.
How the formula works
C3/12turns the yearly return into a monthly rate: 12% / 12 = 1% a month.C4*12is the number of monthly instalments: 120.-C2is the monthly SIP. It’s negative because it’s money you pay in. The last argument,1, means each instalment is paid at the start of the month, as SIPs usually are.
Step 2: Total invested and estimated gains
The amount you put in is the monthly SIP times the number of months. The rest is growth:
=C5-C6
You invest ₹6,00,000 and the estimated gain is ₹5,61,695.
Step 3: Year-by-year growth
List the years and use the same FV formula with each year’s number of months. The $ signs keep the inputs fixed:
=FV($C$3/12,E3*12,-$C$2,0,1)
By year 5 the value is ₹4,12,432. Notice how the gains grow faster in the later years: that’s compounding at work.
The SIP formula without FV
FV gives the same result as the standard SIP formula, M = P × ((1 + i)ⁿ − 1) / i × (1 + i):
| Part | In Excel |
|---|---|
| Monthly rate, i | =C3/12 |
| Months, n | =C4*12 |
| Future value | =C2*((1+C3/12)^(C4*12)-1)/(C3/12)*(1+C3/12) |
Most online SIP calculators, including the one below, use this formula.
Free SIP calculator template for Excel
The template does all of the above for you, with a year-by-year table, a growth chart and a second sheet for step-up SIP, where the monthly amount rises every year. Change the yellow cells and everything updates.
- SIP Calculator sheet: monthly SIP, expected return and years, for up to 40 years.
- Step-up SIP sheet: add an annual increase, such as 10%, to see how much more raising your SIP each year adds.
- Rupee amounts in Indian format, such as 11,61,695.
SIP calculator template
Free Excel template with step-up SIP and a growth chart.
With a 10% step-up, the same ₹5,000 SIP at 12% for 10 years grows to about ₹16,87,198, compared with ₹11,61,695 without it.
Online SIP calculator
Move the sliders to see the estimated value of your SIP instantly.
- Invested
- ₹6,00,000
- Estimated gains
- ₹5,61,695
Year-by-year table
| Year | Monthly SIP | Invested | Value |
|---|
Estimates only. Returns are assumed constant and exclude taxes and charges. Instalments are paid at the start of each month.
Notes
- The expected return is an assumption. Real mutual fund returns go up and down, so treat the result as an estimate, not a guarantee.
- The calculation ignores taxes, exit loads and expense ratios.
- To include a lump sum you already have, put it as FV’s fourth argument, negative:
=FV(C3/12,C4*12,-C2,-C6,1).
Common errors
| Problem | Cause | Fix |
|---|---|---|
| Negative result | Monthly amount entered as positive and FV left as is | Use -C2 in the formula |
| Result too large | Yearly rate not divided by 12 | Use C3/12 |
| Slightly lower than other calculators | Last argument missing | Add 1 for payments at the start of each month |
Practice file
The three steps above. For a full calculator with step-up SIP and a growth chart, download the template.