SIP Calculator — Calculate SIP Returns Online

Monthly Investment

₹

₹500₹1,00,000

Expected Return

% p.a.

130

Time Period

years

140

Total Corpus

₹11.62 L

Invested Amount

₹6.00 L

Est. Returns

₹5.62 L

Corpus Breakdown

How your investment grows over time

Invested

₹6.00 L

Returns

₹5.62 L

ROI

93.6%

What is a SIP?

A SIP calculator is an online financial planning tool that estimates the future value of a Systematic Investment Plan — a method of investing a fixed amount in a mutual fund at regular intervals, typically once a month. By entering three inputs — your monthly investment amount, the expected annual return, and the investment duration — you instantly see your projected total corpus, total amount invested, and estimated returns without any manual computation.

At the heart of the SIP calculator is compounding: returns earned in earlier months are reinvested, and those reinvested returns themselves generate further returns in subsequent months. A ₹5,000 monthly investment at 12% p.a. over 10 years does not simply grow to ₹6 lakh (your invested capital) — it compounds to approximately ₹11.6 lakh, nearly double the amount you put in. Extend that to 20 years and the same ₹5,000 monthly SIP grows to roughly ₹50 lakh — over four times your ₹12 lakh investment.

SIPs are the most popular investment vehicle among Indian retail investors for three structural reasons. First, they require no market timing expertise — you invest on a fixed date regardless of whether the market is rising or falling. Second, they suit salaried professionals who invest from monthly income, since each instalment aligns naturally with a salary credit. Third, they benefit from rupee-cost averaging: because you invest a fixed rupee amount each month at prevailing unit prices, you automatically buy more units when the market is low and fewer when it is high, which reduces your average purchase cost over time.

Most mutual funds in India allow SIPs starting from ₹500 per month, making wealth creation accessible at every income level. Whether you are saving for a child's higher education, a down payment on a home, retirement, or any long-term goal, a SIP calculator helps you work backwards from your target corpus to find the monthly investment required today.

How to use this SIP calculator

Enter your Monthly Investment — the fixed amount you plan to invest every month via auto-debit from your savings account. Most new investors start between ₹1,000 and ₹10,000 per month. If you are unsure of the right amount, use the reverse mode: enter your target corpus to let the calculator work out the monthly investment required.
Set the Expected Return — your assumed annual rate of return. As a reference, large-cap equity funds in India have historically returned 10–12% p.a. over 10-year periods; mid/small-cap funds have returned 12–16% p.a. with higher volatility; debt funds typically return 6–8% p.a. The default of 12% is a reasonable mid-case assumption for a diversified equity fund. Do not set this number based on what you hope for — base it on the historical category average for the type of fund you plan to invest in.
Choose your Time Period — the number of years you plan to stay invested. A minimum of 5 years is recommended for equity SIPs to ride out market cycles; most goal-based plans run 10–25 years. Slide the period up and down to see how dramatically time affects the Total Corpus — this single input has the largest impact on your final wealth.
Read your results — compare the Total Corpus against your goal. If it falls short, increase the monthly investment or extend the time period and recalculate. The Pie chart shows the split between Invested Amount and Estimated Returns, making the contribution of compounding visually clear.
Plan your next step — once you have settled on an amount and horizon that matches your goal, choose a mutual fund category and scheme that targets the return rate you assumed. Consult a fund's factsheet or a SEBI-registered investment adviser to ensure the fund's risk level and track record match your plan.

Formula & Methodology

The SIP future value formula is derived from the standard future value of an ordinary annuity, applied monthly:

FV = P × [(1 + r)ⁿ − 1] / r × (1 + r)

Where:
- FV = Total Corpus (future value of all instalments combined)
- P = Monthly investment amount (₹)
- r = Monthly rate of return = Annual Return Rate ÷ 12 ÷ 100
- n = Total number of months = Investment Period (years) × 12

Worked example — ₹5,000/month, 12% p.a., 10 years:

- P = ₹5,000
- r = 12 ÷ 12 ÷ 100 = 0.01 (1% per month)
- n = 10 × 12 = 120 months
- FV = 5,000 × [(1.01)¹²⁰ − 1] / 0.01 × 1.01
- (1.01)¹²⁰ = 3.3004
- FV = 5,000 × [3.3004 − 1] / 0.01 × 1.01
- FV = 5,000 × 232.34 ≈ ₹11,61,695

Total Invested = ₹5,000 × 120 = ₹6,00,000
Estimated Returns = ₹11,61,695 − ₹6,00,000 = ₹5,61,695

Key assumptions this calculator makes:
- Returns are compounded monthly, not annually — this is standard for SIP calculations.
- The monthly investment amount is fixed throughout the tenure. For a step-up SIP (where the amount increases each year), the formula is more complex.
- Returns shown are pre-tax. LTCG tax at 10% (above ₹1 lakh per financial year) applies to equity fund gains on units held over 12 months and will reduce your net returns.
- All instalments are assumed to be invested on the same date each month with no missed payments.

Frequently Asked Questions

What is a SIP calculator and how does it work?

A SIP calculator estimates the future value of your Systematic Investment Plan by applying the compound interest formula to regular monthly investments. You enter three inputs — monthly investment amount, expected annual return, and time period — and the calculator instantly shows your projected total corpus, total amount invested, and estimated returns. It is a planning tool, not a guarantee, since actual mutual fund returns vary with market conditions.

How is SIP return calculated?

SIP returns are calculated using the future value of a recurring annuity formula: FV = P × [(1 + r)ⁿ − 1] / r × (1 + r), where P is the monthly investment, r is the monthly rate of return (annual rate ÷ 12 ÷ 100), and n is the total number of months. Each monthly instalment earns compound returns for its remaining duration, which is why investing early dramatically increases your final corpus.

What is the difference between SIP and lumpsum investment?

In a SIP, you invest a fixed amount every month, spreading your purchases across different market levels — a strategy called rupee-cost averaging. In a lumpsum investment, you invest a large sum at one time, which can deliver higher returns if timed at a market low but carries more timing risk. SIPs are generally recommended for salaried investors with regular income, while lumpsum investments suit those who receive a windfall or bonus.

Is the return from a SIP guaranteed?

No. SIP returns depend entirely on the performance of the underlying mutual fund scheme, which is linked to market conditions. The expected return you enter in this calculator is an assumption based on historical averages — equity mutual funds in India have historically delivered 10–14% p.a. over 10+ year periods, but past performance does not guarantee future results. Debt and hybrid funds typically deliver lower but more stable returns.

What is the minimum SIP amount in India?

Most mutual fund schemes in India allow SIPs starting from ₹500 per month, and some fund houses have reduced this threshold to ₹100 for certain schemes. There is no upper limit on SIP amount — you can invest as much as your financial plan requires. This flexibility makes SIPs accessible to first-time investors and experienced wealth builders alike.

What happens to my SIP if the market crashes?

A market crash actually benefits long-term SIP investors through rupee-cost averaging — when the market falls, your fixed monthly amount buys more units at lower prices, and those additional units generate higher returns when the market recovers. Investors who continued SIPs through the 2008 and 2020 downturns ended up with significantly larger corpuses than those who stopped. Stopping a SIP during a crash is one of the most common and costly investing mistakes.

How much corpus can a ₹5,000 monthly SIP build in 20 years?

At an assumed annual return of 12%, a ₹5,000 monthly SIP over 20 years would produce a total corpus of approximately ₹49.96 lakh against a total invested amount of ₹12 lakh — meaning your money would grow to over four times the capital you deployed. This illustrates the power of compounding: starting early and staying invested consistently creates wealth that manual savings cannot replicate.

Can I stop, pause, or change my SIP amount?

Yes. Most mutual fund platforms and banks allow you to pause, stop, or modify your SIP amount at any time without penalty. Frequent changes do reduce the rupee-cost averaging benefit and can significantly alter your projected corpus, however. If you face a temporary financial crunch, pausing is better than stopping permanently, since resuming later still allows compounding to continue working on the corpus already built.

Is SIP income taxable in India?

Yes. Returns from equity mutual fund SIPs are subject to capital gains tax in India. Units held for more than 12 months attract Long-Term Capital Gains (LTCG) tax at 10% on gains exceeding ₹1 lakh per financial year; units redeemed within 12 months attract Short-Term Capital Gains (STCG) tax at 15%. Note that each monthly SIP instalment starts its own 12-month holding period, so tax treatment applies instalment by instalment, not to the portfolio as a whole.

How often should I increase my SIP amount?

Most financial planners recommend increasing your SIP amount by 10–15% each year — a strategy called a Step-Up SIP — roughly in line with annual salary increments. You should also review your SIP when major life events change your goals or income (marriage, job change, a new child), or when a fund's performance has consistently lagged its benchmark for 2–3 years. The amount you start with today may not be sufficient for goals a decade away.

What is the difference between a Direct and Regular SIP?

A Direct SIP invests in a fund's Direct plan, which has no distributor commission, resulting in a lower expense ratio and higher returns over time. A Regular SIP is placed through a distributor (bank, broker, or app) who earns a commission from the fund's expense ratio. The difference in returns between Direct and Regular plans is typically 0.5–1.5% p.a., which compounds into several lakh of rupees over a 20-year investment horizon.

Can I use this SIP calculator for a step-up SIP?

The current calculator assumes a fixed monthly investment throughout the tenure. For a step-up SIP — where you increase your monthly investment by a fixed percentage each year — a separate step-up SIP calculator is needed. You can approximate a step-up scenario manually by running multiple calculations: compute the corpus for the first few years at the initial amount, then recalculate with the stepped-up amount for subsequent periods and add the results.