SIP Calculator
Calculate the maturity value and gains on your mutual fund Systematic Investment Plan. Includes step-up SIP option. Free, accurate, no sign-up, no tracking.
Investment Details
Results
Maturity Value
₹99,91,479
Invested
₹24,00,000
Gains
₹75,91,479
Multiplier
4.2×
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
What is a SIP?
A Systematic Investment Plan (SIP) is a facility offered by mutual funds in India to invest a fixed amount at regular intervals — most commonly monthly — into a chosen scheme. SIPs are regulated by the Securities and Exchange Board of India (SEBI); the rules for mutual fund investing are at sebi.gov.in. Instead of timing the market, you buy more units when NAVs are low and fewer when NAVs are high — a behaviour called rupee-cost averaging.
How SIP returns are calculated
A monthly SIP is a series of annuity contributions compounded at a constant periodic rate:
M = P × {[(1 + i)^n − 1] / i} × (1 + i)
Where M is the maturity value, P is the monthly investment, i is the expected monthly return (annual rate ÷ 12 ÷ 100), and n is the number of months. The (1 + i) tail assumes investments are made at the start of each month; drop it if your platform debits at month-end.
Worked example — ₹10,000/month for 20 years at 12%
A ₹10,000 monthly SIP for 240 months at an expected 12% p.a. (i = 0.01) grows to approximately ₹99.9 lakh. Of that, ₹24 lakh is your own principal and ~₹76 lakh is compounding. Push the horizon to 25 years and the corpus crosses ₹1.9 crore — the last 5 years alone add more than the first 15. That is why starting early matters far more than picking the best fund.
Step-up SIP and taxation
- Step-up SIP increases contributions by a fixed % each year to track salary growth; a 10% annual step-up roughly doubles the 20-year corpus vs a flat SIP.
- Equity fund LTCG: held > 12 months, taxed at 12.5% above ₹1.25 lakh/year (Budget 2024 rates).
- Equity STCG: 20% (was 15% pre-Budget 2024).
- Debt fund units acquired after 1 Apr 2023: always taxed at slab, no LTCG benefit.
- ELSS SIP: each instalment has its own 3-year lock-in; the full redemption is not available till the last instalment completes its lock.
Common mistakes
- Stopping SIPs in a bear market. The whole point of rupee-cost averaging is buying cheap units during drawdowns; pausing defeats the mechanism.
- Chasing last year's top performer. Past 1-year returns have near-zero correlation with next-year returns; pick a category, stick with it.
- Picking a regular plan via distributor. Direct plans save 0.75-1.25% TER each year — on a 25-year horizon that is 20-30% of your final corpus.
- Using expected return > 15%. Long-run Nifty 500 TRI returns are ~12% nominal; inflating expectations leads to under-saving.
Related calculators and reading
See also: Step-up SIP Calculator, Lumpsum Calculator, SWP Calculator, SIP vs FD, glossary: Compound Interest.
Common questions about SIP
What is SIP and how does it work?+
SIP — Systematic Investment Plan — is a way to invest a fixed amount in mutual funds at regular intervals, typically monthly. On a chosen date each month, the amount is auto-debited from your bank account and used to buy units of your chosen mutual fund. It enables rupee-cost averaging (buying more units when prices fall, fewer when they rise) and compounding over years.
What return should I expect from SIP?+
Indian equity mutual funds have historically returned 11-14% CAGR over 10+ year periods. Debt funds return 6-8%. Hybrid funds fall in between at 8-11%. Always evaluate returns over at least 7-10 years — shorter windows are misleading because equity is volatile year-to-year.
What is a step-up SIP and is it worth it?+
A step-up SIP increases your monthly investment by a fixed percentage each year — typically 10%. Example: ₹10,000/month starting, growing to ₹11,000 in year 2, ₹12,100 in year 3. Over 20 years at 12% return, a 10% step-up SIP grows to ~₹1.55 crore vs ~₹1 crore for a flat SIP — 55% more corpus for moderately higher total investment.
How much SIP do I need to become a crorepati?+
To reach ₹1 crore in 20 years at 12% expected return, you need to invest about ₹10,100 per month. In 15 years, ₹20,000/month. In 10 years, ₹43,500/month. Start early — the 20-year person invests ₹24.2L total, the 10-year person invests ₹52.2L to reach the same corpus.
Can I pause or stop a SIP?+
Yes. Most AMCs allow pausing SIPs for 3-6 months online. You can also stop permanently anytime — no penalties. However, stopping breaks compounding; try to continue even at a reduced amount during tight months.
SIP vs Lump sum — which is better?+
Over full market cycles, both produce similar CAGR. SIP reduces timing risk — if you invest a lump sum just before a crash, your CAGR suffers for years. SIP smooths the entry. Rule: if you have surplus and markets are at fair valuation, a combination (30% lump sum, 70% through SIPs) tends to outperform pure-SIP at low risk premium.
Is SIP tax-free?+
No. SIPs are not inherently tax-advantaged except ELSS funds (which qualify for 80C, up to ₹1.5L deduction under old regime). Equity mutual fund gains held over 12 months are LTCG at 12.5% above ₹1.25L/year. Debt fund gains (post Apr 2023) are taxed at slab rate. Plan tax harvesting yearly to stay under the LTCG threshold.
What's the minimum amount to start a SIP?+
Most AMCs allow SIPs starting at ₹500/month; some as low as ₹100/month for micro-SIPs. Don't wait to save more — start with whatever you can commit to; compounding rewards consistency over amount.
Which mutual fund category is best for SIP?+
For 10+ year horizons: diversified equity (Nifty 50 Index or Flexi-cap). For 5-10 year goals: hybrid funds. For under 5 years: debt or liquid funds. Never put short-goal money in pure equity — volatility can hurt.
How long should I continue a SIP?+
As long as the goal requires. The compounding magic happens in years 10-25 — the last 5 years of a 25-year SIP often produce more absolute wealth than the first 15 years combined. Stopping early is the #1 mistake SIP investors make.