SIP Calculator
Enter your monthly SIP amount, expected annual return, and time period to project how your investment could grow.
Runs entirely in your browser — your numbers never leave this page.
How it works
A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund every month. The projected value uses the future-value-of-annuity formula:
FV = P × [((1 + r)n − 1) ÷ r] × (1 + r)
where P is the monthly investment, r the monthly return rate, and n the number of months.
- Compounding does the heavy lifting — money earned starts earning its own returns, which is why starting early beats investing more later.
- Step-up SIPs raise your monthly amount each year (say 10%) to match salary growth — a small step-up dramatically raises the final corpus.
- Expected returns are just an assumption: Indian equity funds have averaged ~12% over long periods, debt funds ~7–8%, but no return is guaranteed.
- SIP returns are taxed as capital gains when you redeem — equity LTCG above Rs 1.25L/year is taxed at 12.5%.
Frequently asked questions
How is SIP return calculated?
Each monthly instalment compounds for the remaining time. The formula is FV = P × [((1+r)^n − 1) ÷ r] × (1+r), where r is the monthly rate and n the number of months. Our calculator compounds every instalment individually.
What is a good expected return for SIP?
For long-term equity SIPs, 10–12% is the commonly used assumption based on historical averages. Use 7–8% for debt funds. These are assumptions, not promises — actual returns vary with the market.
What is a step-up SIP?
A SIP that increases by a fixed percentage every year — e.g. a Rs 10,000 SIP growing 10% yearly becomes Rs 11,000 in year two. It matches rising income and can add lakhs to the final corpus.
Is a longer SIP always better?
Almost always, because of compounding — the last few years contribute the most growth. A 20-year SIP at the same monthly amount typically ends up far more than double a 10-year one.
Are SIP returns guaranteed?
No. SIPs invest in market-linked mutual funds, so returns fluctuate. The "expected return" you enter is only a projection assumption.
How are SIP gains taxed?
Equity fund redemptions: gains above Rs 1.25 lakh per year taxed at 12.5% (LTCG, held over 1 year); short-term gains at 20%. Debt funds are taxed at your slab rate.
Should I pause my SIP when markets fall?
Falling markets are when SIPs work best — your fixed amount buys more units (rupee-cost averaging). Pausing in downturns usually hurts long-term returns.
What is the difference between SIP and lump sum?
A SIP spreads investment over time, averaging your purchase price. A lump sum invests everything at once — better if markets rise steadily after, worse if they fall immediately. SIPs suit salaried investors.
Can I withdraw my SIP amount anytime?
Yes for open-ended funds, though ELSS (tax-saving) funds lock in for 3 years. Each SIP instalment in an ELSS has its own 3-year lock-in from its investment date.
Does this calculator account for expense ratio?
No — the projected return should be treated as net of fund expenses. If a fund returns 13% gross with a 1% expense ratio, enter 12% as your expected return.