SIP Calculator
Calculate SIP (Systematic Investment Plan) returns. See future value, total investment, and estimated returns.
What is SIP Calculator?
A SIP (Systematic Investment Plan) calculator projects the future value of regular monthly investments in mutual funds, accounting for compound returns. SIP is India's most popular mutual fund investment method — investing a fixed amount monthly regardless of market conditions (rupee cost averaging). This tool shows you how small regular investments grow exponentially over time due to compounding, helping you set realistic savings goals and understand the power of long-term disciplined investing.
How It Works
Enter your monthly SIP amount, expected annual return rate, and investment duration. The tool applies the future value of annuity formula with monthly compounding: FV = P × [(1+r)^n - 1] / r × (1+r), where P is monthly payment, r is monthly return rate (annual/12), and n is total months. It shows total invested amount, estimated returns earned, and final corpus value. A year-by-year breakdown reveals how compounding accelerates growth in later years — often the last 5 years of a 20-year SIP generate more returns than the first 15 combined.
Common Use Cases
- •Planning monthly SIP amounts needed to accumulate a target retirement corpus
- •Comparing growth scenarios at different expected return rates (equity vs debt funds)
- •Understanding how increasing SIP tenure dramatically improves final returns through compounding
- •Setting savings goals for children's education, home down payment, or financial independence
- •Deciding between lump sum investment and SIP by comparing projected outcomes
- •Motivating consistent investing by visualizing how today's small investments grow over decades
Frequently Asked Questions
What is SIP?▼
SIP is a method of investing a fixed amount regularly in mutual funds, typically monthly.
How does a SIP differ from a lump sum investment?▼
A systematic investment plan contributes a fixed amount at regular intervals, so you buy more units when prices are low and fewer when they are high — rupee cost averaging. It removes the need to time the market and suits investing out of monthly income.
What return should I assume?▼
Any figure you enter is an assumption, not a forecast. Equity markets have historically delivered roughly 10 to 12% annualised over long periods in India, but actual returns vary widely and a specific fund may do far better or worse. Model a pessimistic case as well as an optimistic one.
What is a step-up SIP?▼
One where the contribution rises annually, typically by 5 or 10%, to track your income growth. Because the increases compound alongside the returns, a step-up SIP can end up substantially larger than a flat one for a similar level of effort.
Are SIP returns guaranteed?▼
No. A SIP is a way of investing, not a product with a promised return, and the underlying funds carry market risk. The value can fall below the amount invested, particularly over short horizons. Averaging reduces timing risk but does not remove market risk.
How are SIP gains taxed in India?▼
Each instalment is treated as a separate purchase for holding-period purposes. For equity funds, gains on units held over a year are long-term and taxed at a concessional rate above an annual exemption, while shorter holdings are taxed as short-term. Rates and thresholds change with the Finance Act, so confirm the current year's rules.
Further Reading
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