SIP Calculator

Calculate the future value of your monthly mutual fund SIP. See how much wealth your systematic investment can build, with a clear breakdown of your invested amount versus the returns from compounding.

A monthly SIP of ₹10,000 at 12% expected annual return for 10 years grows to about ₹23.23 L — you invest ₹12 L and earn roughly ₹11.23 L in returns.

₹
₹500 ₹5L
%
1% 30%
Yr
1 40
Total value Invested
₹0₹5.81 L₹11.62 L₹17.43 L₹23.23 LY1Y3Y5Y7Y9Y10

How the SIP Calculator works

A Systematic Investment Plan lets you invest a fixed sum into a mutual fund every month instead of a single large amount. Each instalment buys units at the prevailing Net Asset Value (NAV), so you automatically buy more units when markets are low and fewer when they are high — a concept called rupee-cost averaging. Over years, the returns earned start generating their own returns, and this compounding is what drives serious wealth creation.

The SIP formula

This calculator computes the maturity value using the standard future-value-of-annuity formula with monthly compounding:

  • FV = P × [ ((1 + i)n − 1) / i ] × (1 + i)
  • P — your monthly investment
  • i — monthly rate of return (annual return ÷ 12 ÷ 100)
  • n — total number of monthly instalments (years × 12)

Why start a SIP early?

The longer your money stays invested, the more compounding works in your favour. Investing ₹10,000 a month at 12% for 20 years builds a far larger corpus than the same SIP run for 10 years — not double, but several times more — because the later years generate returns on a much bigger base. Starting even a few years earlier can make a substantial difference to your final corpus.

Tips to get the most from your SIP

  • Stay invested through market dips — that is when your SIP buys the most units.
  • Step up your SIP amount each year as your income grows.
  • Align each SIP to a specific goal (retirement, a home, your child's education).
  • Review your funds annually, but avoid stopping SIPs based on short-term market noise.

Frequently asked questions

What is a SIP (Systematic Investment Plan)?
A SIP is a method of investing a fixed amount in a mutual fund at regular intervals — usually monthly. It instils investing discipline, averages your purchase cost across market ups and downs (rupee-cost averaging), and harnesses the power of compounding over the long term.
How is SIP return calculated?
This calculator uses the future value of an annuity formula with monthly compounding: FV = P × [((1 + i)^n − 1) / i] × (1 + i), where P is the monthly instalment, i is the monthly rate (annual return ÷ 12 ÷ 100), and n is the number of months. It assumes a constant rate of return, which real markets do not guarantee.
Is the expected return rate guaranteed?
No. Equity mutual funds are market-linked and their returns vary year to year. The rate you enter is an assumption for projection only. Historically, diversified Indian equity funds have delivered roughly 10–14% annualised over long periods, but past performance does not guarantee future results.
What is a good SIP amount to start with?
You can start a SIP with as little as ₹500 per month in many funds. A common guideline is to invest 15–20% of your monthly income, but the right amount depends on your goals, time horizon, and existing commitments. Use the slider above to see how different amounts grow.
Should I increase my SIP over time?
Yes — stepping up your SIP as your income grows dramatically increases your final corpus. Try our Step-up SIP Calculator to see the difference an annual increase of 10% can make.
What happens if I miss a SIP instalment?
Missing one instalment does not attract a penalty from the fund house, and your SIP does not get cancelled. However, your bank may levy an ECS/NACH bounce charge (often ₹100–₹750) if the account lacks funds. If you miss three consecutive instalments, most AMCs automatically cancel the SIP mandate, so you would need to restart it.
Direct or regular mutual fund plans for my SIP?
A direct plan has no distributor commission, so its expense ratio is lower — typically 0.5–1% less per year — which compounds into a meaningfully larger corpus over 10–15 years. Regular plans pay a commission to your bank or advisor and cost more. If you can pick funds yourself or use a SEBI-registered fee-only advisor, direct plans are the cheaper choice.
How are my SIP gains taxed in India?
Each SIP instalment is treated as a separate purchase for tax, so units are taxed based on how long each was held. For equity funds, gains on units held over 12 months are long-term, taxed at 12.5% beyond the ₹1.25 lakh annual exemption; units under 12 months attract 20% short-term capital gains tax. Debt fund gains are added to your income and taxed at your slab rate.
Can I pause or stop my SIP anytime?
Yes. SIPs in India are not locked in (except ELSS, which has a 3-year lock-in per instalment), so you can stop a SIP anytime without penalty by submitting a cancellation request a few days before the next debit date. Many platforms also offer a pause feature for 1–3 months if you face a temporary cash crunch, after which the SIP resumes automatically.

Related calculators

Lumpsum Calculator
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Step-up SIP Calculator
See how increasing your SIP every year supercharges your corpus.
SWP Calculator
Plan monthly withdrawals from your corpus and see how long it lasts.
CAGR Calculator
Compute the compound annual growth rate of any investment.
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The results shown are estimates for illustration only, based on the inputs and assumptions you provide. Actual returns, interest, and tax depend on market conditions, prevailing rates, and applicable laws, which change over time. This is not investment, tax, or financial advice — please consult a qualified advisor before making decisions.

Total value
₹23,23,391
Est. returns
₹11.23 L