SIP Calculator
Estimate how much your monthly SIP in a mutual fund could grow to, with total invested amount and estimated returns.
What is the SIP Calculator?
A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund every month. Regular investing averages your purchase cost and lets compounding work over time.
How does it work?
The calculator assumes a constant expected annual return compounded monthly, with each instalment invested at the start of the month (the convention used in AMC illustrations). Actual mutual fund returns vary and are not guaranteed.
Formula
FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i)
P = monthly SIP, i = annual return ÷ 12 ÷ 100, n = months
Example
₹5,000 per month for 10 years at 12% expected return: invested ₹6,00,000, estimated value ₹11,61,695, gains ₹5,61,695.
Time matters more than the amount
A SIP compounds: returns earned in early years earn returns of their own later. That is why the last few years of a long SIP add more value than the first decade.
At an assumed 12% a year, ₹10,000 a month grows to about ₹23 lakh after 10 years, but to about ₹1 crore after 20 years, even though you have only invested twice as much.
| ₹10,000 a month at 12% | Invested | Estimated value |
|---|
| 5 years | ₹6,00,000 | ₹8,24,864 |
| 10 years | ₹12,00,000 | ₹23,23,391 |
| 15 years | ₹18,00,000 | ₹50,45,760 |
| 20 years | ₹24,00,000 | ₹99,91,479 |
| 25 years | ₹30,00,000 | ₹1,89,76,351 |
Choosing a realistic return
The expected return is an assumption, not a promise. Broad Indian equity indices have delivered roughly 10–13% a year over long periods, with large differences between decades and some years of steep losses. Debt funds typically return closer to fixed-deposit rates.
It is sensible to plan with a conservative figure and treat anything above it as a bonus. Over 20 years, ₹10,000 a month becomes about ₹59 lakh at 8%, ₹77 lakh at 10%, ₹1 crore at 12% and ₹1.32 crore at 14%.
Step-up SIPs
A step-up (top-up) SIP raises the monthly amount every year, usually in line with salary increases. Starting at ₹10,000 and increasing it by 10% each year, you would invest about ₹68.7 lakh over 20 years and, at 12%, build about ₹1.99 crore, roughly double the flat SIP.
Inflation and goals
A corpus that looks large today will buy less in future. At 6% inflation, prices roughly double every 12 years, so ₹1 crore in 20 years is worth about ₹31 lakh in today’s money. Size the SIP for the inflated cost of the goal, not today’s cost.
How SIP gains are taxed
- Each instalment is treated as a separate purchase, with its own holding period.
- Equity funds: units held over 12 months give long-term gains, taxed at 12.5% on the total above ₹1.25 lakh a year; units held 12 months or less are taxed at 20%.
- Debt funds bought on or after 1 April 2023: gains are added to income and taxed at your slab rate, whatever the holding period.
- ELSS funds qualify for Section 80C in the old regime, with a three-year lock-in for each instalment.
Frequently asked questions
Are SIP returns guaranteed?
No. Mutual fund returns depend on market performance. The calculator shows an illustration based on the return you enter.
What return should I assume?
Use conservative estimates: long-term equity funds are often illustrated at 10–12%, debt funds at 6–7%. Past performance does not guarantee future returns.
Can I increase my SIP every year?
Yes. Use the SIP Returns Calculator to model an annual step-up.
What happens if I miss a SIP instalment?
Usually nothing except the missed investment. Most fund houses cancel a SIP after three consecutive failed debits, and your bank may charge a fee for a bounced auto-debit.
Is it better to invest a lump sum or through a SIP?
If markets rise steadily, a lump sum invested early does better. A SIP spreads purchases over time, which reduces the risk of investing everything just before a fall. For monthly savings from salary, a SIP is the natural choice.
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