- You invest
- ₹6,00,000
- Estimated returns
- ₹5,61,695
- Worth in today’s money
- ₹6,48,688
Year-by-year breakdown
| Year | Invested so far | Returns | Value |
|---|
What is a SIP calculator?
A SIP (Systematic Investment Plan) calculator estimates how much your regular mutual fund investments could be worth in the future. You enter how much you invest every month, the return you expect, and how long you plan to stay invested. It shows your total investment, the estimated gains, and the final value of your money.
It helps you plan real goals like retirement, your child’s education, or a house down payment. Instead of guessing, you can see in seconds how changing the amount, period, or return changes the result. Switch to One-time lumpsum above to see what a single investment could grow to.
How to use this calculator
- Choose Monthly SIP or One-time lumpsum.
- Enter your investment amount, or tap one of the quick amounts.
- Set the return you expect each year. A cautious figure keeps your plan realistic.
- Choose how many years you will stay invested.
- For SIPs, optionally add a yearly increase if you plan to invest more as your income grows.
Results update instantly. Open the year-by-year breakdown to see exactly how your money grows over time.
How SIP returns are calculated
For a fixed monthly SIP, the future value is calculated with this formula:
P is your monthly investment, i is the monthly rate of return (yearly rate ÷ 12 ÷ 100), and n is the number of monthly instalments. For a lumpsum, the formula is simpler: FV = P × (1 + r)t, where r is the yearly return and t is the number of years.
Example
- Monthly SIP
- ₹5,000
- Expected return
- 12% a year
- Period
- 10 years
- You invest
- ₹6,00,000
- Estimated returns
- ₹5,61,695
- Final value
- ₹11,61,695
Nearly half of the final amount comes from returns, not from money you put in. That is compounding at work: your returns start earning returns of their own, and the effect grows stronger the longer you stay invested.
What is a step-up SIP?
A step-up SIP (also called a top-up SIP) increases your monthly instalment by a fixed percentage every year. Since most people earn more over time, raising your SIP along with your income can make a large difference to your final amount. Try adding a 10% yearly increase in the calculator above and compare the result with a flat SIP.
Why people invest through SIP
- Rupee cost averaging. You buy more units when prices are low and fewer when prices are high, which can lower your average cost over time.
- Compounding. The longer you stay invested, the more your returns build on each other.
- Discipline. An automatic monthly debit turns investing into a habit.
- Small starting amount. Many funds let you start with a small monthly sum.
- Flexibility. You can usually increase, pause, or stop a SIP when your situation changes.
Things to keep in mind
- Mutual fund returns move with the market. The calculator assumes a steady return, which real markets do not deliver.
- Inflation reduces what your money can buy. That is why the calculator also shows the value in today’s money.
- Expense ratios, exit loads, and taxes reduce your actual returns.
- Choose funds based on your goal, time horizon, and comfort with risk, not only on past returns.
Frequently asked questions
Are the returns shown by the SIP calculator guaranteed?
No. The calculator gives an estimate based on the return you enter. Actual mutual fund returns depend on market performance and can be higher or lower than the estimate.
What rate of return should I assume?
It depends on the type of fund. Many investors use cautious assumptions so they don’t overestimate their final amount. Past performance does not guarantee future returns.
What is the minimum amount to start a SIP?
Many mutual funds in India let you start a SIP with ₹100 to ₹500 a month. The exact minimum varies by fund, so check the scheme details before investing.
Can I stop or pause my SIP anytime?
Yes, in most open-ended mutual funds you can stop or pause a SIP. An exit load may apply if you redeem units within a set period of buying them, so check the fund’s exit load rules.
How are SIP returns taxed?
Each SIP instalment counts as a separate investment with its own holding period. Gains are taxed as capital gains, and the rate depends on the fund type and how long you held the units. Tax rules change from time to time, so check the latest rules or consult a tax advisor.
Is SIP better than a lumpsum investment?
A SIP suits people who invest from monthly income and want to avoid putting everything in at a market high. A lumpsum can work well if you have a large amount ready and a long time horizon. Many investors use both. Switch between the two modes above to compare.
Disclaimer: This calculator and content are for information only and are not financial advice. Mutual fund investments are subject to market risks. Read all scheme-related documents carefully and consult a qualified financial advisor before investing.