A Systematic Investment Plan (SIP) lets you put a fixed amount into a mutual fund every month, usually by auto-debit from your bank account. This calculator estimates what those monthly instalments could grow to, given an expected annual return and investment period. It shows the total you invest, the estimated gains and a year-by-year growth table, so you can see compounding at work.
How to use the SIP calculator
- Monthly investment: the amount you will invest each month. Many funds accept SIPs from ₹100–₹500.
- Expected return (% p.a.): a realistic long-term annual return for the type of fund (see the table below).
- Investment period: how many years you plan to keep the SIP running.
- Press Calculate SIP Returns to see the maturity value, total invested, wealth gained and yearly growth.
SIP formula
A SIP is a series of equal monthly investments, each compounding for a different length of time. The first instalment compounds for the full period and the last one for just a month. The future value is:
P = monthly investment
i = expected annual return ÷ 12 ÷ 100
n = number of monthly instalments
The extra “× (1 + i)” is there because each SIP instalment is invested at the start of the month. This is the convention used by AMFI and most fund houses.
Worked example: ₹10,000 a month for 15 years at 12%
- Total invested: 10,000 × 180 = ₹18,00,000
- Estimated value: ₹50,45,760
- Estimated gains: ₹32,45,760, about 1.8 times what you put in
The power of time: start early
Here is a ₹5,000 monthly SIP at an assumed 12% a year, over different periods:
| Period | Total invested | Estimated value | Gains as % of value |
|---|---|---|---|
| 10 years | ₹6,00,000 | ₹11,61,695 | 48% |
| 20 years | ₹12,00,000 | ₹49,95,740 | 76% |
| 30 years | ₹18,00,000 | ₹1,76,49,569 | 90% |
Doubling the period from 10 to 20 years multiplies the result more than four times. Over 30 years, almost 90% of the final corpus comes from returns rather than your own contributions. This is why starting a SIP in your twenties matters more than the exact amount.
How sensitive is the result to the return rate?
₹10,000 a month for 10 years (₹12 lakh invested):
| Assumed return | Estimated value |
|---|---|
| 10% p.a. | ₹20,65,520 |
| 12% p.a. | ₹23,23,391 |
| 14% p.a. | ₹26,20,914 |
A 2-percentage-point difference in returns changes the outcome by roughly ₹2.6–3 lakh over just 10 years, and by much more over longer periods. Keep your assumption modest so that the plan does not rely on unusually good years.
What return should I assume?
| Fund type | Reasonable long-term planning assumption | Risk |
|---|---|---|
| Large-cap / Nifty 50 index fund | 10–12% | Moderate to high |
| Flexi-cap / multi-cap | 11–13% | High |
| Mid- and small-cap | 12–14% (very volatile) | Very high |
| Hybrid (equity + debt) | 8–10% | Moderate |
| Debt / short-duration funds | 6–7.5% | Low to moderate |
These are planning assumptions, not forecasts. Past performance does not guarantee future returns. Check each scheme’s factsheet and riskometer.
SIP vs lump sum
A lump sum invested at a market low can beat a SIP, but nobody can reliably time the market. A SIP buys more units when prices are low and fewer when they are high, which is called rupee cost averaging. It also builds the habit of investing from each month’s salary. For most salaried people, a SIP is the practical choice. If you receive a large amount at once, such as a bonus or an inheritance, a Systematic Transfer Plan (STP) from a liquid fund spreads it into equity over 6–12 months.
Step-up SIP
Raising your SIP every year, for example by 10% when you get a raise, has a large effect. ₹10,000 a month increased by 10% a year for 20 years at 12% builds roughly twice the corpus of a flat ₹10,000 SIP. Most fund platforms let you set an automatic annual top-up.
Tax on SIP returns (equity funds)
- Each SIP instalment is treated as a separate investment with its own holding period.
- Units held more than 12 months: long-term capital gains are taxed at 12.5% on gains above ₹1.25 lakh per financial year.
- Units held 12 months or less: short-term gains are taxed at 20%.
- ELSS (tax-saver) SIPs have a 3-year lock-in per instalment. They qualify for Section 80C only under the old tax regime.
The calculator shows pre-tax values. Debt-fund gains on investments made after 1 April 2023 are taxed at your slab rate.
Frequently asked questions
How is SIP return calculated?
FV = P × [(1 + i)^n − 1] ÷ i × (1 + i), where P is the monthly amount, i is the annual return ÷ 1200 and n is the number of months. ₹10,000 a month for 15 years at 12% gives about ₹50.46 lakh.
Is a 12% SIP return realistic?
Diversified Indian equity funds have delivered around 11–13% a year over many long periods, but there have also been years with negative returns. A 10–12% assumption for equity is common for planning. Use a lower figure for hybrid or debt funds.
How much SIP is needed to make 1 crore?
At an assumed 12% a year, you need about ₹10,000 a month for roughly 20 years, ₹5,300 a month for 25 years, or around ₹2,900 a month for 30 years. Change the inputs in the calculator to test your own target.
Can I stop or pause a SIP?
Yes. SIPs are flexible. You can pause, stop or change the amount at any time, and your existing units stay invested. Only ELSS units have a lock-in period.
Does the SIP calculator include tax and expense ratio?
No. The result is before tax and assumes the return you enter is already net of the fund’s expense ratio. Direct plans have lower expense ratios than regular plans, which slightly improves real returns.