SIP Calculator
Calculate how much your monthly SIP will grow over time with the power of compounding — with year-by-year breakdown.
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Show year-by-year growth ▸
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How this SIP calculator works
Enter your monthly investment, an expected annual return, and how long you plan to invest. The calculator compounds your instalments monthly and shows the corpus you could accumulate, split into what you invested and what your money earned.
The formula
FV = P × ((1+r)n − 1) ÷ r × (1+r), where P is the monthly SIP, r the monthly rate of return, and n the total number of instalments. Instalments are assumed to be invested at the start of each month.
Why starting early matters more than investing more
At 12% a year, ₹10,000 a month becomes roughly ₹23 lakh in 10 years — but about ₹1 crore in 20 years. Doubling the time multiplies the outcome by over four times, because returns themselves start earning returns. This is why the best month to start a SIP is almost always this one.
Choosing a realistic return assumption
- Equity funds (7+ year horizon): 10–12% is a common working assumption.
- Hybrid funds: 8–10%.
- Debt funds: 6–7.5%.
Resist the urge to plan with optimistic numbers — a plan that works at 10% and delights at 14% beats one that only works at 14%.
Frequently Asked Questions
What is a SIP?
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund at a regular interval — usually monthly. Instead of timing the market, you buy units at different prices over time, which averages out your purchase cost (rupee cost averaging).
How is SIP return calculated?
This calculator uses the future value of an annuity-due formula: FV = P × ((1+r)^n − 1)/r × (1+r), where P is the monthly investment, r is the monthly rate (annual return ÷ 12), and n is the number of monthly instalments.
What return should I assume for equity SIPs?
Long-run Indian equity fund returns have historically averaged around 10–14% a year, but they are not guaranteed and vary widely by period and fund. Many planners use 10–12% as a conservative working assumption for horizons above 7 years.
Can I lose money in a SIP?
Yes. A SIP is a way of investing, not a product guarantee — if the underlying fund falls, your investment falls too. SIPs reduce timing risk over long horizons but do not eliminate market risk.
Is there a minimum or maximum SIP amount?
Most funds allow SIPs starting at ₹100–₹500 per month with no practical upper limit. You can increase, pause, or stop a SIP at any time — there is no lock-in except for ELSS funds (3 years per instalment).
How are SIP gains taxed?
For equity funds, gains on units held over 12 months are long-term and taxed at 12.5% above ₹1.25 lakh per year; shorter holdings are taxed at 20%. Each SIP instalment has its own holding period. Tax rules change — verify against the latest provisions.
Disclaimer: This calculator produces illustrative estimates only. Actual returns vary and, unless stated otherwise, results exclude expense ratios, exit loads, transaction costs, and taxes. Assumed rates are inputs, not forecasts or assured returns. This is educational content, not personalized investment advice — see our full disclaimer.