H2 Investment
Calculator

SIP calculator

Work out what a fixed amount invested every month could be worth after a set number of years, at a rate of return you choose yourself.

Illustrative only — this is not a projection or a promise of returns. Every figure below is arithmetic applied to the rate of return you typed in. H2 Investment is not suggesting that rate, forecasting it, or promising it. Returns are market-linked, vary from year to year, and can be negative.

Your assumptions

In rupees. Numbers only.

Your assumption for an average annual return. Nobody can tell you the right number to put here.

Whole years.

What this is, and what it isn’t

This is arithmetic on the numbers you typed. It compounds them at the rate you chose and shows you the result. That is all it does.

It is an illustration, not a projection. It is not a forecast, not a recommendation, and not an offer. Nobody knows what any investment will return, so the rate you enter is an assumption you are making, not a rate anyone is offering you. Real returns arrive unevenly — good years, flat years and falling years, in an order nobody can predict — and that order matters as much as the average.

Use the output the way you’d use a rough estimate on the back of an envelope: to see whether the shape of a plan is roughly right, not to decide what a specific rupee amount will be worth on a specific date.

The one thing this cannot tell you is the rate, and the whole result hangs on it. Run it at three different rates and look at the spread rather than at any single figure.

What this calculation assumes

Each instalment is compounded for the months it stays invested, at one-twelfth of the annual rate. Four assumptions sit behind that:

  • One rate, every month. The calculator applies the same return to every month of every year. Markets do not work that way. Two plans that both average 12% can end up far apart depending on which years were the bad ones.
  • Every instalment paid, no gaps. One missed year, or a pause and restart, changes the result more than most people expect, because the earliest instalments are the ones with the longest to compound.
  • No costs, no tax. Exit load, stamp duty and capital gains tax are not deducted. A scheme’s expense ratio is already reflected in its NAV — its per-unit value — so quoted returns are after that, but the tax you pay on redemption is not.
  • Nothing comes out. The money stays invested for the whole period. One withdrawal partway through changes the result significantly.

New to the idea behind this? SIP or lump sum walks through it in plain language.

Talk to us

If you’d rather go through your own numbers with a person than a form, that’s what we’re for. You’ll speak to Himani, who runs H2 — the same person every time.

Talk to us See how we get paid

Other calculators

See all calculators. None of these ask for your name, your phone number or your PAN. Nothing you type is stored or sent anywhere. Use them as often as you like without hearing from us.