📈 SIP Calculator

Calculate how much your monthly SIP investments will grow over time with compound returns.

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What is a SIP Calculator?

A SIP (Systematic Investment Plan) Calculator estimates the future value of your monthly mutual fund investments. By entering your monthly investment amount, expected annual return, and investment duration, you can see how compounding grows your wealth over time.

How to Use This SIP Calculator

  1. Enter your monthly SIP amount — the fixed amount you invest each month (e.g., ₹5,000).
  2. Enter the expected annual return — typically 10–14% for equity mutual funds historically.
  3. Enter the investment period in years.
  4. Click Calculate to see your estimated maturity value and total returns.

SIP Formula

FV = P × [(1+r)ⁿ − 1] × (1+r) ÷ r

Where: P = Monthly investment, r = Monthly return rate, n = Total months

Example

If you invest ₹5,000/month for 15 years at 12% annual return:

  • Total Invested: ₹9,00,000
  • Estimated Returns: ₹16,22,880
  • Maturity Value: ₹25,22,880

This shows the power of compounding — your returns exceed your invested amount by nearly 2x.

Tips for SIP Investors

  • Start early — even ₹500/month from age 22 beats ₹5,000/month from age 35.
  • Increase your SIP by 10–15% every year (Step-Up SIP) to accelerate wealth creation.
  • Stay invested during market downturns — SIPs benefit from buying more units when prices are low (rupee cost averaging).
  • Choose direct plans over regular plans to save on commission.
  • Set up auto-debit so you never miss an investment date.
💡 Note: The 12% return used in examples is based on historical equity mutual fund averages. Mutual fund returns are not guaranteed. Past performance does not guarantee future results.

SIP vs Lump Sum Investing

A SIP spreads your investment across months, buying more mutual fund units when the market is low and fewer when it's high — this is called rupee cost averaging, and it reduces the risk of investing a large lump sum right before a market fall. A lump sum investment, on the other hand, can outperform a SIP if invested right before a sustained bull run, but it also carries more timing risk. For most salaried individuals in India investing out of monthly income, SIP is the natural and lower-risk choice.

SIP and Taxation

Returns from equity mutual fund SIPs are taxed as capital gains. Units held for more than 12 months qualify for Long-Term Capital Gains (LTCG) tax — gains above ₹1.25 lakh in a financial year are taxed at 12.5%. Units sold within 12 months attract Short-Term Capital Gains (STCG) tax at 20%. Each SIP instalment is treated as a separate investment for calculating the holding period, so in a long-running SIP, the newest instalments may still be under STCG even if the oldest ones qualify for LTCG.

📅 Last reviewed: July 2026 · Formulas verified against RBI/SEBI/IT Dept guidelines.