SIP Calculator
Calculate Systematic Investment Plan returns — see future value, total gains, and year-wise growth instantly.
Investment Details
Investment Summary
Growth Projection
Year-wise Breakup
| Year | Invested | Value | Gain |
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What Is a SIP Calculator?
A SIP (Systematic Investment Plan) calculator is an online tool that estimates the future value of regular monthly investments in mutual funds. You input three variables — the monthly investment amount, the investment duration in years, and the expected annual return rate — and the calculator applies the standard compound interest formula to show you how much your investment will grow over time.
The formula used is: FV = P × [{(1 + r)^n – 1} / r] × (1 + r), where FV is the future value, P is the monthly investment, r is the monthly rate of return (annual rate ÷ 12), and n is the total number of months.
How to Use This SIP Calculator
- Monthly Investment: Set the amount you plan to invest every month (₹500 to ₹1,00,000).
- Investment Period: Choose how many years you want to stay invested (1 to 30 years).
- Expected Return: Enter the annual return rate you expect from your mutual fund (typically 10–15% for equity funds).
- The results update instantly — no button click required.
SIP vs Lump Sum — Which Is Better?
SIP offers rupee cost averaging — you automatically buy more units when markets are low and fewer when they're high. This smooths out the impact of market volatility over time. Lump sum investment can outperform in a steadily rising market, but requires accurate market timing which is difficult to predict consistently.
For most retail investors, SIP is the preferred approach because it builds investment discipline, doesn't require a large upfront capital, and reduces the risk of investing a large sum at a market peak.
Understanding Your Results
- Total Invested: The sum of all your monthly contributions (monthly amount × months).
- Estimated Returns: The wealth created above your investment, purely from compounding.
- Future Value: What your portfolio is projected to be worth at the end of the period.
Note: Actual mutual fund returns vary based on market conditions and fund performance. This calculator provides an estimate for planning purposes only — it does not constitute investment advice.
Power of Compounding in SIP
Compounding means your returns earn returns. A ₹5,000/month SIP at 12% annual return for 20 years invests ₹12,00,000 but grows to approximately ₹49,95,740 — generating ₹37,95,740 in returns. That's over 3× the invested capital from compounding alone. Starting early, even with a small amount, makes a dramatic difference.
Frequently Asked Questions
Is the SIP calculator accurate?
It uses the standard SIP compound interest formula and gives a mathematical estimate. Actual mutual fund returns depend on market performance and fund management, so real results may differ.
What is a good expected return rate to enter?
For large-cap equity mutual funds, 10–12% is a common historical average. Small/mid-cap funds have averaged 13–16% historically but with higher volatility. Debt funds typically return 6–8%. Use a conservative estimate for long-term planning.
Can I start SIP with ₹500 per month?
Yes. Most mutual fund houses in India allow SIP starting from ₹500 per month. ELSS (tax-saving) funds are a popular choice for beginners with small amounts.
Does SIP guarantee returns?
No. SIP in mutual funds is subject to market risk. The expected return rate you enter is an assumption — actual returns may be higher or lower depending on market conditions.
What is the difference between SIP and RD?
A Recurring Deposit (RD) offers fixed, guaranteed returns (typically 5–7%). SIP in equity mutual funds offers potentially higher returns (10–15%+) but with market-linked risk. RD is suitable for risk-averse investors; SIP is better for wealth creation over the long term.
SIP Investment Guide — Strategies for Maximum Wealth Creation
A Systematic Investment Plan (SIP) is the most disciplined way to build long-term wealth in India. By investing a fixed amount every month, you harness three powerful forces: compounding (returns earning returns), rupee cost averaging (buying more units when markets fall, fewer when they rise), and financial discipline (automated monthly commitment that removes emotional decision-making).
SIP Returns by Tenure — Power of Starting Early
The difference between starting at 25 vs 35 is dramatic. Both investing ₹10,000/month at 12% annual return:
| Start Age | Years Invested | Total Invested | Corpus at 60 | Extra Gain |
|---|---|---|---|---|
| Age 25 | 35 years | ₹42L | ₹6.4 Cr | ₹5.98 Cr gain |
| Age 30 | 30 years | ₹36L | ₹3.5 Cr | ₹3.14 Cr gain |
| Age 35 | 25 years | ₹30L | ₹1.9 Cr | ₹1.6 Cr gain |
Starting at 25 instead of 35 with the same ₹10,000/month investment produces over 3× more corpus. The extra 10 years in the market is worth ₹4.5 crore in this example.
SIP Step-Up Strategy (Annual Increment)
Rather than investing a flat amount for the full tenure, a step-up SIP increases your monthly investment by a fixed percentage every year (matching salary growth). The impact is profound:
- Flat SIP: ₹10,000/month for 20 years at 12% = approximately ₹99.9 lakh
- 10% annual step-up SIP: Starting at ₹10,000/month, increasing 10% each year = approximately ₹1.99 crore
- A 10% annual increase doubles the corpus over 20 years compared to a flat SIP
Use our Step-Up SIP Calculator to model this for your specific numbers.
Which Mutual Fund Category for Which Goal?
Historical CAGR: ~11-12%. Lower volatility. Good for long-term goals 7+ years. Examples: Nifty 50 index funds, HDFC Top 100, ICICI Pru Bluechip.
Historical CAGR: ~14-16%. Higher volatility. Suitable for 10+ year goals. Can outperform large-cap significantly but can also fall sharper in corrections.
3-year lock-in. Eligible for Section 80C deduction up to ₹1.5L. Historically returns 12-15%. Ideal for first-time investors combining tax saving with wealth creation.
Returns 6-8%. Low risk. Suitable for 3-5 year goals or as a defensive allocation. Income tax on gains depends on holding period.
SIP Tax Implications
Each SIP instalment is treated as a separate investment for capital gains tax purposes. When you redeem:
- Equity funds held < 1 year: Short-Term Capital Gains (STCG) at 20%
- Equity funds held ≥ 1 year: Long-Term Capital Gains (LTCG) at 12.5% on gains above ₹1.25 lakh per year
- ELSS funds: 3-year lock-in per SIP instalment; LTCG at 12.5% above ₹1.25L threshold
- Debt funds: Gains added to income and taxed at slab rate (post April 2023 amendment)
Common SIP Mistakes to Avoid
- Stopping SIP during market downturns — this is exactly when SIP buys the most units at lower NAV. Stopping kills the rupee cost averaging benefit.
- Redeeming before the goal horizon — equity mutual funds need 7+ years to deliver consistent returns. Early redemption may coincide with a market correction.
- Not increasing SIP amount as income grows — a ₹5,000 SIP started at 25 should ideally be ₹15,000–20,000 by age 35 as salary grows.
- Too many funds — 3–5 diversified funds are enough. Over-diversifying across 15 funds provides no additional benefit.
- Ignoring expense ratio — a 1.5% expense ratio vs 0.1% in an index fund compounds into a significant difference over 20 years.
Who Uses This SIP Calculator?
Young salaried professionals planning their first SIP investment. Parents calculating how much to invest monthly for a child's education 15 years away. Retirees checking if their current SIP will meet their retirement corpus target. Financial planners modelling scenarios for clients. NRIs comparing SIP returns against overseas investment options. Students estimating how much a small monthly investment today could grow by age 40.