SIP Calculator

Estimate how a monthly SIP (or a one-time lumpsum) could grow over time, including an optional yearly increase in your SIP amount.

How the SIP calculator works

A Systematic Investment Plan (SIP) invests a fixed amount every month. Each instalment compounds for the months that remain, so early instalments grow the most. This calculator assumes each SIP is invested at the start of the month and compounds monthly at one-twelfth of the annual return you enter, the same convention most fund houses and calculators use.

SIP future value = P × [((1 + i)^n − 1) ÷ i] × (1 + i) P = monthly SIP, i = annual return ÷ 12 ÷ 100, n = number of months Lumpsum future value = P × (1 + R)^t (R = annual return, t = years)

Example

₹10,000 a month for 10 years at an expected 12% return grows to about ₹23.23 lakh. You invest ₹12 lakh and the estimated gain is about ₹11.23 lakh. Add a 10% annual step-up and the final value rises to about ₹33.7 lakh.

What is a step-up SIP?

A step-up (or top-up) SIP increases your monthly instalment every year, usually in line with salary hikes. Even a small yearly increase makes a big difference over 15–20 years, because the larger instalments also compound.

Things to keep in mind

Equity fund returns vary from year to year. Use a conservative rate (10–12% for equity, 6–8% for debt) for planning.
The calculator does not deduct expense ratios, exit loads or capital gains tax.
Starting early usually matters more than the amount. Compare 10 and 20 years in the calculator to see the difference.

Frequently asked questions

Are SIP returns guaranteed?

No. Mutual fund returns depend on market performance. The calculator shows what your money could become at a constant assumed return, which is useful for planning but not a promise.

SIP or lumpsum – which is better?

A lumpsum invested at a good time can beat a SIP, but no one can reliably time the market. A SIP spreads your purchases over time (rupee-cost averaging) and suits regular monthly income.

How is tax calculated on SIP gains?

Each SIP instalment is treated as a separate purchase for capital gains. Equity fund gains are taxed as short- or long-term depending on how long each unit was held. This calculator shows pre-tax values.

Results are estimates for information only and are not financial, tax or investment advice. Rates and rules change, so confirm figures with your bank, employer or a qualified professional before making decisions.