What is a SIP calculator?

A SIP calculator is a free online tool that estimates the future value of your Systematic Investment Plan. You enter your monthly SIP amount, expected annual return, and the investment duration, and the calculator instantly projects the maturity value, your total invested amount, and the wealth gain. It uses the standard SIP future-value formula and the power of compounding.

What is a realistic expected return for SIP in India?

Historical long-term returns are: large-cap equity funds 10-12% CAGR, flexi-cap funds 11-13%, mid-cap 12-15%, small-cap 13-18% (with higher volatility), and debt funds 6-8%. These are long-period historical averages, not guarantees. A 12% rate is a reasonable starting assumption for long-term equity SIPs over 10+ years.

How much can I get from a ₹5,000 monthly SIP?

At a 12% annual return, a ₹5,000 monthly SIP could grow to around ₹11.6 lakh in 10 years (₹6 lakh invested), ₹50 lakh in 20 years (₹12 lakh invested), and ₹1.76 crore in 30 years (₹18 lakh invested). The longer you stay invested, the more compounding accelerates your wealth.

Is SIP better than a fixed deposit?

SIPs in equity mutual funds have historically delivered higher long-term returns (10-12%) compared to FDs (6.5-7.5%), but with market volatility. FDs offer guaranteed returns and zero principal risk. For goals over 7+ years, SIPs usually beat FDs comfortably after inflation and tax. For shorter goals or emergency money, FDs are safer.

Does the SIP calculator account for taxes?

This calculator shows pre-tax returns. As per Finance Act 2024 (effective 23 July 2024), equity mutual fund gains held over 12 months attract 12.5% LTCG tax on annual gains above ₹1.25 lakh. Gains held under 12 months attract 20% STCG. Use our Mutual Fund Tax Calculator to see your post-tax SIP returns.

What is the minimum SIP amount in mutual funds?

Most mutual fund houses allow SIPs starting from ₹500 per month. Many funds now allow micro-SIPs from as low as ₹100 a month. There is no regulatory maximum on SIP amounts. Start with a comfortable amount you can sustain for years — consistency matters more than starting big.

How does compounding work in a SIP?

In a SIP, each monthly instalment is invested at a different point in time. The first instalment compounds for the full tenure, the second for one month less, and so on. This staggered compounding, combined with rupee-cost averaging (you buy more units when prices are low), is the core strength of SIP investing for long-term wealth creation.

Can I change or stop my SIP anytime?

Yes. SIPs in open-ended mutual funds are fully flexible. You can pause, stop, modify the amount, or change the date at any time without penalty. However, stopping a SIP during a market fall is usually the worst time — that is when your SIP buys units at lower prices.

What is a step-up SIP and is it better?

A step-up SIP automatically increases your monthly investment every year, usually by 10% or a fixed amount. It keeps your SIP rising with your income and inflation. Over a 25-30 year horizon, a step-up SIP can build roughly 2x the corpus of a flat SIP. Use our Step-Up SIP Calculator to compare both.

SIP Calculator

Free online SIP calculator to estimate the future value of your Systematic Investment Plan. Enter your monthly investment, expected return, and duration to instantly see your maturity amount, total returns and year-by-year growth chart.

Monthly Investment

₹

₹500₹2,00,000

Ten Thousand Rupees

Expected Annual Return

1%30%

The Nifty 50 returned about 12% a year over 1996-2025. See the Nifty 50 Returns tool for the real year-by-year data.

Investment Duration

yrs

1 yrs40 yrs

Total Invested

₹12.00 L

Est. Returns

₹11.23 L

Maturity Value

₹23.23 L

93.6% absolute gain

Year-by-Year Breakdown

Year-by-Year Breakdown
Year	Amount Invested	Est. Returns	Total Value
Yr 1	₹1.20 L	₹8,093	₹1.28 L
Yr 2	₹2.40 L	₹32,432	₹2.72 L
Yr 3	₹3.60 L	₹75,076	₹4.35 L
Yr 4	₹4.80 L	₹1.38 L	₹6.18 L
Yr 5	₹6.00 L	₹2.25 L	₹8.25 L
Yr 6	₹7.20 L	₹3.38 L	₹10.58 L
Yr 7	₹8.40 L	₹4.80 L	₹13.20 L
Yr 8	₹9.60 L	₹6.55 L	₹16.15 L
Yr 9	₹10.80 L	₹8.68 L	₹19.48 L
Yr 10	₹12.00 L	₹11.23 L	₹23.23 L

Results shown are estimates based on assumed annual returns and are for illustrative purposes only. Actual returns will vary.

What is a SIP?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount in a mutual fund at a regular interval, usually monthly. The amount is auto-debited from your bank account and invested in a fund of your choice. SIPs are the most popular way to invest in mutual funds in India, with over 9 crore active SIP accounts and monthly inflows that have crossed ₹30,000 crore in 2026.

SIPs work because they combine three powerful ideas: discipline (you invest every month regardless of market mood), rupee-cost averaging (you buy more units when prices are low) and compounding (your returns earn returns of their own over the years).

How to use this SIP calculator

Enter your monthly SIP amount. Use the slider or type the amount you want to invest every month, for example ₹5,000.
Set the expected annual return. A 12% rate is a reasonable long-term assumption for equity mutual funds in India.
Enter the investment duration in years. Long horizons of 15-30 years let compounding work its magic.
Review the result. The calculator instantly shows the maturity value, total invested amount, and total returns.
Compare scenarios. Try different amounts, returns and durations to plan your goal. Use the Step-Up SIP Calculator to see what raising your SIP each year does.

SIP calculation formula

The calculator uses the standard future-value formula for monthly recurring investments:

FV = P × [((1+r)^n − 1) / r] × (1+r)

Where P is your monthly SIP amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly instalments. Each instalment compounds for the remaining months in the tenure, which is why early instalments contribute the most to the final corpus.

Why a SIP works so well

Automatic and disciplined. The amount is auto-debited every month, so you never have to remember or decide. Discipline is built in.
Rupee-cost averaging. A fixed amount buys more units when the market is low and fewer when high, smoothing your average purchase cost over time.
Power of compounding. Returns earn returns. The longer you stay invested, the steeper the wealth curve gets.
Start small, stay long. A SIP can begin with just ₹500 a month. Time and consistency matter more than amount.
Beats market timing. You invest steadily in good markets and bad. Trying to time the market almost never works as well as showing up every month.

Sample SIP returns at 12% annual

Monthly SIP	10 years	20 years	30 years
₹1,000	≈ ₹2.3 lakh	≈ ₹10 lakh	≈ ₹35 lakh
₹3,000	≈ ₹7 lakh	≈ ₹30 lakh	≈ ₹1.06 crore
₹5,000	≈ ₹11.6 lakh	≈ ₹50 lakh	≈ ₹1.76 crore
₹10,000	≈ ₹23 lakh	≈ ₹1 crore	≈ ₹3.5 crore
₹25,000	≈ ₹58 lakh	≈ ₹2.5 crore	≈ ₹8.75 crore

Figures assume 12% annual return, compounded monthly with month-start contributions. Values are illustrative and not guaranteed. Use the calculator above for exact results.