SIP Calculator
Project your SIP growth with step-up and inflation options.
— Est. gains
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How this is calculated
We compound your monthly investment month-by-month at your expected annual return. With a step-up, the monthly amount rises by that percentage every year. The inflation toggle discounts the final value to today's purchasing power. Returns are assumptions, not guarantees — actual market returns vary.
What is a SIP?
A Systematic Investment Plan invests a fixed amount in a mutual fund at regular intervals, averaging your purchase cost and building wealth through compounding.
What return should I assume?
Equity funds have historically returned ~10–12% over long periods, but this is not guaranteed. Use a conservative figure and review periodically.
What is a step-up SIP?
Increasing your SIP each year (e.g., with your salary hike) dramatically grows your final corpus, as later contributions still compound.
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How this SIP calculator works
Enter your monthly investment, an expected annual return, and how long you will stay invested. The calculator compounds your money monthly using the standard SIP future-value formula:
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i)
where P is the monthly SIP, i the monthly return (annual return ÷ 12), and n the number of months. Turn on step-up to grow the SIP by a fixed percentage every year, and inflation adjustment to see the result in today’s purchasing power.
A worked example
A ₹10,000 monthly SIP at 12% for 15 years means you invest ₹18 lakh in total — but the projected value is about ₹50.5 lakh. Nearly two-thirds of the final corpus is growth, not contribution: that is compounding doing the heavy lifting.
Add a 10% annual step-up — increasing the SIP as your income grows — and the same plan reaches roughly ₹86.8 lakh. Small yearly increases early in the journey have an outsized effect because they get the most time to compound.
What return should you assume?
Diversified equity mutual funds in India have historically delivered around 10–14% a year over long periods, which is why 12% is a common planning assumption — but past returns do not guarantee future returns. For goals you cannot afford to miss, plan with a conservative number and treat anything above it as a bonus. Debt funds and FDs compound more slowly but more predictably; see the FD vs mutual fund comparison.
Common SIP mistakes to avoid
- Stopping when markets fall — downturns are when your SIP buys more units cheaply.
- Chasing last year’s winner — funds rotate; your asset mix and time horizon matter more.
- Never stepping up — a SIP frozen at its starting amount quietly shrinks relative to your income.
- Ignoring the goal — match the investment to a date and an amount, then let the calculator tell you if you are on track.
Frequently asked questions
What is a good monthly SIP amount to start with?
Start with an amount you can sustain every month — even ₹500 to ₹1,000 builds the habit. Consistency and annual step-ups matter far more than the starting figure.
Can I increase, pause, or stop my SIP anytime?
Yes. SIPs are completely flexible — you can raise the amount, pause, or stop without penalty. Note that redeeming units may attract exit load, and tax-saver (ELSS) units have a 3-year lock-in.
What return should I assume in the calculator?
A 12% annual return is a common long-term planning assumption for diversified equity funds in India, but returns are not guaranteed. Use a conservative figure for critical goals.
Is SIP better than investing a lump sum?
A SIP suits people with a regular income and removes market-timing anxiety through rupee-cost averaging. A lump sum can perform better in steadily rising markets. Many investors combine both.
Are SIP returns taxable?
Yes — gains are taxed as capital gains when you redeem, and the rate depends on the fund type and how long each instalment was held. Check the current Budget rules or ask your advisor before redeeming.
Does a step-up SIP really make a difference?
Yes. Increasing your SIP by 5–10% each year adds contributions early enough to compound for years, so the final corpus grows disproportionately versus a flat SIP.
These calculators provide estimates for educational purposes only and are not personalized investment advice. Mutual fund investments are subject to market risks.