Skip to content
FinCalc India

SIP Calculator

A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund every month. Because you buy more units when prices are low and fewer when high, your average cost per unit smooths out over time (rupee-cost averaging).

Enter your monthly amount, an expected annual return and the duration to estimate the maturity value. Add a step-up to model raising the SIP each year as your income grows.

Assumptions used
  • Instalments invested at the start of each month, compounding monthly.
  • A single constant return for the whole period; no expense ratio, exit load or tax deducted.

Enter your details

₹
50010,00,000
%
130

Long-run assumption. Equity funds are volatile; returns are not guaranteed.

years
140
%
025

Increase the SIP amount by this percentage every 12 months.

Results

Projected Value

₹50,45,760

Total Invested
₹18,00,000
Estimated Returns
₹32,45,760
  • Invested₹18.00 L(36%)
  • Estimated returns₹32.46 L(64%)
Year-wise growth (15 rows)
YearTotal InvestedValueGain
1₹1,20,000₹1,28,093₹8,093
2₹2,40,000₹2,72,432₹32,432
3₹3,60,000₹4,35,076₹75,076
4₹4,80,000₹6,18,348₹1,38,348
5₹6,00,000₹8,24,864₹2,24,864
6₹7,20,000₹10,57,570₹3,37,570
7₹8,40,000₹13,19,790₹4,79,790
8₹9,60,000₹16,15,266₹6,55,266
9₹10,80,000₹19,48,215₹8,68,215
10₹12,00,000₹23,23,391₹11,23,391
11₹13,20,000₹27,46,148₹14,26,148
12₹14,40,000₹32,22,522₹17,82,522
13₹15,60,000₹37,59,311₹21,99,311
14₹16,80,000₹43,64,180₹26,84,180
15₹18,00,000₹50,45,760₹32,45,760

How SIP returns are calculated

Each instalment is assumed to be invested at the start of the month and to compound monthly at the expected annual rate. The future value of a level SIP is the future value of an annuity due:

FV = P × [ ((1 + i)^n − 1) ÷ i ] × (1 + i)

  • P = monthly investment
  • i = expected annual return ÷ 12 ÷ 100
  • n = number of monthly instalments

With a step-up, the instalment rises by the chosen percentage every 12 months and the calculator runs the maths month by month.

Worked example

  1. ₹10,000 per month for 15 years at 12% p.a.
  2. i = 0.01, n = 180
  3. FV ≈ ₹10,000 × ((1.01^180 − 1) ÷ 0.01) × 1.01
  4. FV ≈ ₹50.4 lakh, on ₹18 lakh invested — about ₹32.4 lakh of estimated gains.

Why start early

  • Compounding rewards time more than amount. A SIP started 5 years earlier can end far ahead of a larger SIP started later.
  • A step-up SIP lets contributions grow with your salary without a lifestyle squeeze.
  • Staying invested through downturns is what turns rupee-cost averaging into a real advantage.

The expected return is an assumption, not a promise. Equity mutual funds can fall sharply in any given year. Use a conservative rate and review periodically.

This calculator is for education and illustration only. Results are estimates based on the inputs and assumptions shown and are not financial, investment, tax or legal advice. Verify figures with your bank, a registered adviser or the relevant government department before acting.

Frequently asked questions

Is the SIP return guaranteed?

No. Mutual fund SIPs are market-linked. The calculator uses a constant expected return you choose; actual returns vary year to year and can be negative over short periods.

What return rate should I assume for a SIP?

For a long-horizon equity SIP many investors model 10–12% per annum; for hybrid or debt funds, lower. Use a conservative figure and treat the output as a rough projection.

What is a step-up SIP?

A SIP where you increase the monthly amount by a set percentage each year, usually in line with salary growth. It significantly raises the maturity value for a small yearly increase.

Does the calculator assume investment at the start or end of the month?

The start of the month (annuity due). This matches how most SIPs are debited and gives a slightly higher figure than an end-of-month assumption.

Are SIP returns taxed?

Yes. Gains on equity mutual funds are taxed as short-term or long-term capital gains depending on the holding period of each instalment, with a separate rule for each SIP unit purchased.

Related calculators & guides

Calculators

Guides