How to use the SIP Calculator
- Enter how much you plan to invest every month.
- Set an expected annual return and the number of years you'll stay invested.
- Optionally add an annual step-up if you plan to raise your SIP as your income grows.
- Compare the total invested with the estimated value, and check what that value is worth in today's money.
What is a SIP?
A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund at regular intervals, usually monthly. Each instalment buys units at that day's price, so you buy more units when prices are low and fewer when they are high. Over long periods, regular investing and compounding do most of the work.
How SIP returns are calculated
FV = P × [((1 + r)^n − 1) / r] × (1 + r)- P: monthly instalment
- r: expected annual return ÷ 12 ÷ 100
- n: number of monthly instalments
The final (1 + r) reflects that each instalment is invested at the start of the month. With a step-up, the calculator simply simulates each month with the higher instalment from each new year onward.
Why actual returns will differ
- Market-linked funds don't grow at a constant rate. A 12% assumption might be 25% one year and −10% the next.
- Your actual return is measured as XIRR, which accounts for the timing of every instalment. Fund factsheets usually show CAGR for lump sums, which isn't directly comparable.
- Expense ratios, exit loads and capital-gains tax reduce what you take home.
- Inflation lowers what the final amount will buy, which is why the calculator also shows the value in today's money. See the inflation calculator for more.
Example
₹10,000 a month for 10 years at an assumed 12% a year:
- Total invested: 120 × ₹10,000 = ₹12,00,000
- Estimated value: ₹23,23,391, so estimated gains are about ₹11.23 lakh.
- With a 10% annual step-up, you invest about ₹19.12 lakh and the estimated value rises to about ₹33.74 lakh.
Frequently asked questions
What return should I assume?
Use a conservative figure. Many planners use 10–12% for diversified equity funds over 10+ years, 7–8% for hybrid funds and 6–7% for debt funds, but past performance doesn't guarantee future returns.
Is SIP better than a lump sum?
A lump sum invested earlier has more time to grow if markets rise steadily. A SIP spreads your entry over time, reducing the risk of investing everything at a market peak, and suits monthly income.
Does the calculator include tax?
No. Gains on equity mutual funds are subject to capital-gains tax when you redeem. Tax depends on the holding period and current rules, so check them before planning withdrawals.
What is a step-up SIP?
A step-up (or top-up) SIP raises your monthly instalment by a fixed percentage each year, typically in line with salary increments. Even small step-ups make a large difference over long periods.
Is what I enter stored or sent anywhere?
No. Calculations and processing happen in your browser. Nothing you type is sent to our servers. Some tools remember your last input in this browser's local storage for convenience; you can clear it at any time.