How the SIP calculator works
Enter how much you plan to invest each month, the annual return you expect, and how long you'll stay invested. The calculator compounds every instalment monthly and shows your total investment, estimated gains and the final corpus. Add an annual step-up to model increasing your SIP as your income grows.
SIP formula
For a flat monthly SIP, the future value is:
- P — monthly SIP amount
- i — monthly rate of return = annual return ÷ 12 ÷ 100
- n — number of monthly instalments
The final (1 + i) term reflects that each instalment is invested at the start of the month. For step-up SIPs there is no neat closed-form formula, so the calculator simulates every month individually.
Worked example
₹10,000 a month for 10 years at 12% a year: i = 0.01 and n = 120. The future value comes to about ₹23.23 lakh on a total investment of ₹12 lakh — gains of roughly ₹11.23 lakh. Adding a 10% yearly step-up to the same SIP pushes the corpus above ₹32 lakh.
Tips for SIP investors
- Start early. Time in the market matters more than amount. A SIP started 5 years earlier can end up larger than one twice its size started later.
- Step up with your salary. Increasing your SIP by even 5–10% each year keeps your savings rate in line with your income.
- Stay invested through downturns. Market dips let SIPs buy more units at lower prices — stopping during a fall defeats the purpose of rupee cost averaging.
- Mind taxes. Equity fund gains held over 12 months are taxed as long-term capital gains at 12.5% above ₹1.25 lakh a year; short-term gains are taxed at 20%.
Prefer guaranteed returns? Compare with the PPF calculator or FD calculator.
Frequently asked questions
What is a SIP?
A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund at regular intervals, usually monthly. It builds discipline and averages your purchase cost across market ups and downs (rupee cost averaging).
Are SIP returns guaranteed?
No. Mutual fund returns depend on market performance. The calculator assumes a constant annual return for illustration; actual returns will vary year to year and can be negative over short periods.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly instalment by a fixed percentage every year, typically in line with salary hikes. Even a 10% annual step-up can dramatically increase your final corpus.
What return rate should I assume?
Long-term Indian equity funds have historically delivered around 10–14% a year, but past performance doesn't guarantee future returns. Using a conservative 10–12% for equity and 6–8% for debt funds is sensible for planning.
Last updated: 22 September 2026Suggest an improvement · Report a problem