SIP Calculator
Estimate the future value of your monthly SIP mutual fund investments — invested amount, expected returns and maturity value.
About the SIP Calculator
A SIP (Systematic Investment Plan) lets you invest a fixed amount in mutual funds every month, and this SIP calculator shows what that discipline can grow into. Enter your monthly investment in rupees, an expected annual return and the number of years — the tool instantly displays your total invested amount, the estimated returns and the final maturity value.
It uses the standard SIP future-value formula: FV = P × ((1 + i)ⁿ − 1) ÷ i × (1 + i), where P is the monthly instalment, i the monthly rate (annual return ÷ 12 ÷ 100) and n the number of months. Because each instalment is assumed to be invested at the start of the month, compounding works on every rupee from day one.
The power of compounding is striking over long horizons: ₹10,000 a month at 12% grows to roughly ₹50 lakh in 15 years, of which only ₹18 lakh is your own money. Indian equity mutual funds have historically delivered 10–14% over long periods, though returns are market-linked and never guaranteed. Use the calculator to plan goals like retirement, a house down payment or children's education.
How to Use the SIP Calculator
- 1Enter the amount you plan to invest every month.
- 2Set the expected annual return (equity funds are often modelled at 10–14%).
- 3Enter the investment period in years.
- 4Compare the invested amount with the estimated maturity value.
Frequently Asked Questions
How are SIP returns calculated?
The calculator applies the future-value-of-annuity formula FV = P × ((1 + i)ⁿ − 1) ÷ i × (1 + i), compounding each monthly instalment at the monthly rate i until maturity. It assumes a constant return and investments at the start of each month; actual mutual fund returns fluctuate with the market.
What return should I assume for a SIP in mutual funds?
There is no guaranteed figure, but Indian large-cap equity funds have historically averaged around 10–12% annually over 10+ year periods, with mid- and small-cap funds sometimes higher and more volatile. Debt funds typically return 6–8%. Using 10–12% for equity SIPs is a common, reasonably conservative planning assumption.
Is SIP better than a lump sum investment?
SIPs average your purchase cost across market ups and downs (rupee cost averaging) and suit salaried investors with monthly cash flow. A lump sum can beat a SIP if markets rise steadily after you invest, but it carries timing risk. Many investors combine both: a base SIP plus lump sums on market dips.
Can I change or stop my SIP anytime?
Yes. SIPs in open-ended mutual funds are flexible — you can increase the amount (many platforms offer step-up SIPs), pause or stop without penalty. Note that each instalment in an ELSS tax-saving fund has its own 3-year lock-in, and exit loads may apply if you redeem equity funds within a year.
Are SIP returns taxable in India?
Yes. For equity funds, long-term capital gains (units held over 12 months) above ₹1.25 lakh a year are taxed at 12.5%, and short-term gains at 20%. Each SIP instalment has its own holding period. Debt fund gains are taxed at your income slab rate. Rules change, so verify current rates before filing.