A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund every month, buying more units when markets fall and fewer when they rise — rupee cost averaging doing the heavy lifting for you. Because equity returns compound, the two variables that matter most are the monthly amount and, even more, the number of years you stay invested. This SIP calculator projects the maturity value of any monthly SIP at your assumed annual return, splitting the final figure into total invested and wealth gained, with a year-wise table so you can watch compounding accelerate. Use it to set a monthly amount for a goal — retirement, a child's education, a home down payment — or to check whether your current SIP is on track.
How SIP returns are estimated
The calculator compounds each monthly instalment at the assumed annual return for its remaining time in the plan (monthly compounding). It is a projection, not a promise — actual mutual fund returns vary with the market.
Example
₹10,000/month for 15 years at 12% p.a. Total invested: ₹18,00,000. Projected maturity: about ₹49,96,000 — wealth gained roughly ₹31,96,000. Extend to 20 years and the same SIP projects near ₹99,91,000.
Step-up SIPs
Raising your SIP 10% every year (a step-up SIP) mirrors salary growth and dramatically lifts the outcome: on the example above, a 10% annual step-up takes the 15-year maturity from ~₹50 lakh to ~₹80 lakh. If your income grows, your SIP should too.
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Frequently asked questions
What is a good annual return to assume for SIP?
10–12% is the commonly used long-term assumption for Indian equity mutual funds, based on historical averages. Use 8–10% for a conservative plan.
How much should I invest in SIP monthly?
Start with what you can sustain — even ₹1,000–₹5,000 — and step it up yearly. For a target corpus, work backwards: the calculator shows the monthly amount any goal needs.
Is SIP better than lump sum?
SIP suits regular income and volatile markets (rupee cost averaging). A lump sum invested at a market bottom wins mathematically, but timing the bottom is the hard part.
Are SIP returns taxable?
Yes. Equity fund gains: 12.5% LTCG above ₹1.25 lakh/year (held over 1 year), 20% STCG. Debt fund gains are taxed at your slab rate.