SIP Calculator

What your result means

The calculator shows what your SIP could be worth if the fund earned the same return every year. Real returns go up and down, so treat the result as an estimate, not a promise.

Mutual fund investments are subject to market risks. Read all scheme related documents carefully. Past returns do not predict future returns.

How SIP returns are calculated

The calculator assumes each instalment is invested at the start of the month and grows at a fixed monthly rate. Month by month:

Value = (value + instalment) × (1 + i)

• i: the monthly rate, which is the expected yearly return ÷ 12 ÷ 100. So 12% a year is 0.01 a month.
• Instalment: your monthly SIP amount.
• n: the number of months, which is years × 12.

With no step-up, this works out to the standard SIP formula:

FV = P × ((1 + i)ⁿ − 1) ÷ i × (1 + i)

With a step-up, the instalment rises by that percentage every 12 months. A 10% step-up on ₹10,000 means ₹11,000 a month in year 2, ₹12,100 in year 3, and so on.

How to use the SIP calculator

1. Enter your monthly investment. The default is ₹10,000.
2. Enter the expected return as a percentage a year. The default is 12.
3. Enter the period in years. The default is 10.
4. Optionally, enter an annual step-up percentage if you plan to raise your SIP each year. Leave it at 0 for a flat SIP.
5. Read the estimated value, amount invested and estimated returns, and check the year table. Results update as you type.

Worked example

Arjun invests ₹10,000 a month for 10 years and assumes a 12% yearly return.

1. Monthly rate: 12 ÷ 12 ÷ 100 = 0.01.
2. Months: 10 × 12 = 120.
3. Estimated value: 10,000 × ((1.01)¹²⁰ − 1) ÷ 0.01 × 1.01 = ₹23,23,391.
4. Amount invested: 10,000 × 120 = ₹12,00,000.
5. Estimated returns: ₹23,23,391 − ₹12,00,000 = ₹11,23,391.

After year 1, Arjun has invested ₹1,20,000 and the value is ₹1,28,093. After year 5, he has invested ₹6,00,000 and the value is ₹8,24,864. Growth speeds up in later years because returns start earning returns.

If Arjun adds a 10% yearly step-up, he invests ₹19,12,491 in total and the estimated value rises to ₹33,74,326.

One more step most calculators skip: inflation. At 6% inflation, ₹23,23,391 in 10 years buys what about ₹12,97,000 buys today. Arjun still comes out ahead of the ₹12 lakh he put in, but by far less than the headline number suggests. The inflation calculator shows how fast prices eat into a future amount.

Why SIP calculators give different answers

Put ₹10,000 a month for 10 years at 12% into two popular calculators and you can get two answers: ₹23,23,391 here, and about ₹22,40,359 on some others. Neither is wrong. They turn the yearly return into a monthly rate in different ways.

• This calculator divides the yearly return by 12: 12% becomes 1% a month. Compounded monthly, that is about 12.68% a year.
• Some others use the monthly rate that compounds to exactly 12% a year: (1.12)^1/12 − 1, about 0.949% a month.

Fund returns are reported as yearly CAGR or XIRR, so the second method matches a fund’s published return a little more closely. To match a fund’s yearly return exactly here, enter about 0.6% less: 11.39% instead of 12% gives about ₹22.4 lakh, in line with the other method. Or simply plan around the lower of the two results.

What return should you assume?

There is no right number, because nobody knows future returns. Some simple rules help:

• Be conservative. Use a lower rate than recent past returns. Good years in the past do not mean good years ahead.
• Match the fund type. Equity funds can grow more over long periods but swing a lot. Debt funds usually grow less but more steadily.
• Test a range. Run the calculator at, say, 8%, 10% and 12%. Plan around the lower result.
• Allow for costs and tax. The result is before tax. Fund expenses are already inside a fund’s returns, so use returns after expenses.

SIP vs lump sum and step-up SIP

A SIP invests a fixed amount every month. A lump sum invests everything at once. A lump sum can grow more if markets rise steadily, because all the money is invested from day one. A SIP spreads your buying over time, so you buy more units when prices are low and fewer when they are high. This is called rupee cost averaging. It does not guarantee a profit, but it reduces the risk of investing everything at a bad time.

For most salaried people, a SIP fits naturally with a monthly income. A step-up SIP lets your investment grow with your salary. Even a small yearly step-up can make a large difference over 15 to 20 years.

Why time matters more than amount

Compounding needs time. Here is the same ₹10,000 a month at an assumed 12% a year over different periods:

The same pattern holds for any amount. Estimated values at an assumed 12% a year:

Doubling the period from 10 to 20 years doubles what you put in but more than quadruples the estimated value. Starting a few years earlier often does more than investing a larger amount later. Remember that these values are in future rupees. With inflation, ₹1 crore in 20 years will buy much less than ₹1 crore today, so set goals with that in mind.

Limitations

• Fixed return assumed: real fund returns change every day and can be negative for years.
• No tax or exit load: capital gains tax and any exit load are not deducted.
• No inflation: ₹23 lakh in 10 years will buy less than ₹23 lakh today.
• Timing: your actual SIP date and NAV on that date will change the result slightly.

Key facts

• Mutual fund investments are subject to market risks, and investors should read all scheme related documents carefully. (AMFI (opens in new tab))
• A SIP lets you invest a fixed amount in a mutual fund scheme at regular intervals, such as monthly. (AMFI (opens in new tab))
• Every mutual fund scheme must show a riskometer that rates its risk from low to very high. (SEBI (opens in new tab))
• Long-term capital gains on equity funds above ₹1.25 lakh a year are taxed at 12.5%, and short-term gains at 20%, under rates set in Budget 2024. (Income Tax Department (opens in new tab))
• The Finance Bill 2026 proposed no change in income tax rates for tax year 2026-27, the first year under the Income-tax Act, 2025. (Finance Bill 2026 memorandum (opens in new tab))
• Equity fund units count as long-term when held for more than 12 months. (Income Tax Department (opens in new tab))
• Past performance of a mutual fund may or may not be sustained in the future. (SEBI (opens in new tab))