Mutual funds
How SIP Returns Are Estimated
A SIP calculator applies an assumed return to a series of contributions; it does not predict future mutual-fund NAVs.
Reviewed 1 September 2026Each contribution has a different duration
The first instalment remains invested longer than the last. A future-value formula therefore compounds each monthly contribution for the number of periods it remains invested.
Beginning or end of month
An annuity-due formula assumes payments at the beginning of each period, while an ordinary-annuity formula assumes payments at the end. The site’s SIP calculator uses end-of-month contributions and states that assumption beside its explanation.
The return is only an assumption
Real NAV movements are uneven. Fund expenses, taxes, exit loads, skipped contributions and changes in the contribution amount can make actual outcomes different.
How to use scenarios
Compare more conservative and less conservative assumed returns rather than relying on one headline value. The purpose is to understand sensitivity to time, contribution and return—not to promise a maturity amount.
Primary and authoritative sources
Sources support factual context. Share Market Open remains responsible for its explanations and calculator assumptions.