FinCalc

SIP Calculator

Calculate returns on systematic investment plans

₹
%
Yrs

Future Value

₹23,23,391

Total Invested

₹12,00,000

Wealth Gained

₹11,23,391

Invested vs Gains

Growth Over Time

What is a SIP Calculator?

A SIP (Systematic Investment Plan) lets you invest a fixed amount in mutual funds every month, building wealth through the power of compounding and rupee-cost averaging. This calculator projects the future value of your monthly SIP based on expected returns and investment duration.

SIPs are the most popular way Indians invest in mutual funds because they enforce discipline and reduce the risk of timing the market. Even modest monthly investments can grow into substantial wealth over 15-20 years thanks to compounding. This tool helps you set realistic expectations and plan your investment amounts based on your financial goals.

When to Use This Calculator

  • Planning monthly SIP amount needed to reach a target corpus (e.g., ₹1 crore)
  • Comparing the impact of starting a SIP now vs 5 years later
  • Seeing how different return rates (equity vs debt funds) affect final wealth
  • Motivating yourself by visualizing long-term compounding on small monthly amounts
  • Planning SIPs for specific goals — children's education, house down payment, retirement

Key Terms

SIP

Systematic Investment Plan — an automated method of investing a fixed amount in mutual funds at regular intervals (usually monthly). Ensures disciplined investing.

Rupee-Cost Averaging

By investing the same amount every month, you buy more units when prices are low and fewer when prices are high. This averages out the purchase cost over time, reducing the risk of bad timing.

Compounding

Earning returns on your returns. In a SIP, the returns from earlier months get reinvested and generate their own returns, creating exponential growth over long periods.

CAGR

Compound Annual Growth Rate — the average annual return that smooths out volatility. Equity mutual funds in India have historically delivered 12-15% CAGR over 10+ year periods.

NAV

Net Asset Value — the per-unit price of a mutual fund. Your SIP amount divided by the NAV determines how many units you receive each month.

Frequently Asked Questions

What return rate should I use for SIP calculation?+
For equity mutual funds (large-cap/index funds), 12% is a reasonable long-term estimate based on historical Nifty 50 returns. For debt funds, use 6-7%. For balanced/hybrid funds, 9-10%. Remember, actual returns will vary year to year — these are averages.
Is SIP better than lumpsum investment?+
Neither is universally better. SIP reduces timing risk through rupee-cost averaging, making it ideal for volatile equity markets. Lumpsum can outperform if the market trends upward. For most salaried individuals, SIP is practical because you invest from monthly income. Use our Lumpsum vs SIP comparison tool to see the difference.
Can I stop or modify my SIP anytime?+
Yes. SIPs have no lock-in period (except ELSS funds which have a 3-year lock-in). You can pause, increase, decrease, or stop your SIP at any time through your mutual fund platform. There are no penalties for stopping.
How much should I invest in SIP per month?+
A common guideline is to invest at least 20% of your take-home salary. Start with what you can afford — even ₹500/month — and increase it annually as your income grows. Use our Step-up SIP calculator to see the impact of yearly increases.
Does this calculator account for taxes?+
No. Equity mutual fund returns are subject to capital gains tax: STCG at 20% (holding < 1 year) and LTCG at 12.5% above ₹1.25 lakh/year (holding > 1 year) as per Budget 2025. Actual post-tax returns will be slightly lower than shown.