Numarly

SIP Return Calculator

Estimate the profit generated from your SIP investments.

What is it?

SIP return shows the profit you earn from your monthly investments over time. It compares your total invested amount against the compounded future value to show both the absolute profit and the return percentage.

Formula

FV = P × [(1+r)^n − 1] / r × (1+r)

Return % = (FV − Invested) ÷ Invested × 100

Formula Explanation

After computing the future value using the standard SIP compounding formula, the profit is simply the difference between that final value and everything you contributed. Dividing profit by the total invested amount gives a percentage that shows your overall return, independent of the actual rupee amounts.

Example Calculation

Investing $5,000/month for 10 years at 12% return grows to about $1,160,000 from $600,000 invested — a profit of roughly $560,000, or about 93% return.

How to Use

  1. Enter your monthly investment amount.
  2. Enter the expected annual return.
  3. Enter the investment duration in years.
  4. View the final value, profit earned, and return percentage.

Benefits

  • Separates your actual profit from the total money you put in.
  • Gives a percentage figure that's easy to compare across different investment amounts.
  • Useful for tracking how return percentage improves with longer holding periods.

Use Cases

  • Checking the actual profit made on an ongoing SIP.
  • Comparing return percentages across different expected rates or durations.
  • Understanding how much of your final corpus is genuine profit vs. contributions.

What Your Result Means

The return percentage reflects your total profit relative to what you actually invested — not an annualized rate like CAGR. A higher percentage over a longer duration reflects the compounding effect building up over time.

Tips

  • Compare this return percentage to CAGR (see the CAGR calculator) to understand both your total and annualized growth.
  • Longer SIP durations typically show a higher return percentage due to compounding.
  • Use a realistic expected return to avoid overestimating your projected profit.

Common Mistakes

  • Confusing this total return percentage with an annualized rate like CAGR — they measure different things.
  • Assuming the expected return entered is guaranteed rather than an estimate.
  • Not accounting for taxes on capital gains when evaluating "profit."

FAQs

Is the return percentage the same as CAGR?

No. This return percentage is the total profit over your entire invested amount, while CAGR shows the equivalent constant annual growth rate.

Why does SIP return improve over longer durations?

Compounding has more time to work, and the impact of market volatility on your average purchase cost is reduced (rupee cost averaging).

Are SIP returns fixed?

No, they depend on the market performance of the fund you invest in. The rate used here is only an estimate.

What is a good SIP return percentage?

It depends heavily on duration and market conditions — longer-duration equity SIPs often see cumulative returns well over 100%, while shorter durations naturally show smaller percentages.

Does this account for taxes?

No, the profit shown is pre-tax. Actual take-home returns depend on applicable capital gains tax rules for your investment type and holding period.

This calculator provides estimates based on the expected return you enter. Actual mutual fund returns vary with market performance.

Last updated: July 25, 2026