Calculators
SIP Calculator
Last updated 17 June 2026The interactive SIP calculator runs on this page. Open the calculator ↑
Key Takeaways
- A SIP invests a fixed sum at regular intervals (usually monthly), buying more units when prices are low and fewer when high — known as rupee-cost averaging.
- ₹10,000/month for 15 years at an assumed 12% return ≈ ₹50.5 lakh, against ₹18 lakh invested — but this is an estimate, not a promise.
- Time matters more than amount. The same SIP run for 25 years instead of 15 grows to about ₹1.9 crore, because compounding accelerates in the later years.
- The expected-return figure is an assumption you choose — equity returns vary year to year and can be negative; the calculator does not predict the market.
- Results shown are before expense ratio, exit load and taxes, and assume a steady return, so treat them as a planning guide, not a guaranteed outcome.
What Is a SIP?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount in a mutual fund scheme at regular intervals — most commonly a fixed sum every month, debited automatically from your bank account. It is not a product in itself; it is simply a disciplined way of investing in a mutual fund.
SIPs are popular in India for two reasons. First, they make investing a habit rather than a one-off decision, so you invest steadily regardless of market mood. Second, because you invest the same rupee amount each month, you automatically buy more units when the market is down and fewer when it is up — a mechanism called rupee-cost averaging that smooths out your average purchase price over time.
A SIP can be started, paused, increased (a "step-up" SIP) or stopped at any time, and there is no penalty for stopping. The value of your investment will still rise and fall with the underlying market. To learn the concept in more depth, see our guide on what a SIP is and how it works.
How SIP Returns Are Calculated
Each monthly instalment buys units of the mutual fund at that month's price (its Net Asset Value, or NAV). Over time you accumulate units across many different prices, and your investment value is the total units held × the current NAV.
Because the actual NAV changes daily and unpredictably, a SIP calculator cannot use real prices for the future. Instead it uses a single assumed annual rate of return that you provide, and treats each instalment as compounding monthly until the end of the period. This gives a smooth estimate of how the investment could grow if it earned that average return every year — which real markets do not do. The calculator's output is therefore a projection for planning, not a forecast of what any specific fund will deliver.
SIP Formula
The standard future-value formula for a monthly SIP (with each instalment invested at the start of the month) is:
FV = P × [ ((1 + i)ⁿ − 1) ÷ i ] × (1 + i)
Where:
| Symbol | Meaning | Example |
|---|---|---|
| FV | Future value (estimated maturity amount) | ₹50,45,720 |
| P | Monthly investment | ₹10,000 |
| i | Monthly rate = assumed annual return ÷ 12 ÷ 100 | 12% → 0.12 ÷ 12 = 0.01 |
| n | Number of monthly instalments = years × 12 | 15 years → 180 |
The × (1 + i) at the end reflects that each instalment is invested at the beginning of the month. Some calculators omit it (assuming end-of-month investment); the difference is small but we state our convention for transparency.
Worked Example
Let's project a SIP of ₹10,000 per month for 15 years at an assumed 12% annual return.
Step 1 — Monthly rate (i). 12 ÷ 12 ÷ 100 = 0.01
Step 2 — Number of instalments (n). 15 × 12 = 180
Step 3 — Compute (1 + i)ⁿ. (1.01)¹⁸⁰ = 5.9958
Step 4 — Apply the formula. FV = 10,000 × [ (5.9958 − 1) ÷ 0.01 ] × 1.01 FV = 10,000 × 499.58 × 1.01 = ₹50,45,720
Step 5 — Split investment vs gain.
- Total invested = ₹10,000 × 180 = ₹18,00,000
- Estimated gain = ₹50,45,720 − ₹18,00,000 = ₹32,45,720
So your ₹18 lakh of contributions could grow to roughly ₹50.5 lakh if the investment averaged 12% a year. In reality, returns vary year to year and the final figure could be higher or lower — including periods where your investment is worth less than you put in.
The Power of Compounding
Compounding means your returns themselves start earning returns. In a SIP, the early instalments have the most time to compound, so the longer you stay invested, the more the growth accelerates — far faster than the amount you invest.
The table shows the same ₹10,000/month SIP at an assumed 12% over different durations:
| Duration | Total invested | Estimated value | Estimated wealth gained |
|---|---|---|---|
| 5 years | ₹6,00,000 | ₹8,24,864 | ₹2,24,864 |
| 10 years | ₹12,00,000 | ₹23,23,391 | ₹11,23,391 |
| 15 years | ₹18,00,000 | ₹50,45,720 | ₹32,45,720 |
| 20 years | ₹24,00,000 | ₹99,91,480 | ₹75,91,480 |
| 25 years | ₹30,00,000 | ₹1,89,76,350 | ₹1,59,76,350 |
Notice the pattern: going from 15 to 25 years, your contributions rise by about 1.7× (₹18 lakh to ₹30 lakh), but the estimated value rises nearly 3.8× (₹50.5 lakh to ₹1.9 crore). The extra decade does most of the heavy lifting — which is why starting early generally matters more than investing large amounts later. (All figures assume a constant 12% return, which real markets do not deliver.)
SIP vs Lumpsum
A SIP spreads your investment over time; a lumpsum invests a single large amount at once. Neither is universally "better" — they suit different situations.
| Factor | SIP | Lumpsum |
|---|---|---|
| Cash needed | Small, recurring (e.g., ₹10,000/month) | Large, upfront |
| Best suited to | Regular income (salary) | A one-time surplus (bonus, maturity, sale) |
| Market-timing risk | Lower — spread across many price points | Higher — all invested at one price |
| Rupee-cost averaging | Yes | No |
| Discipline | Automated, habit-forming | One-time decision |
| Expected return (same period) | Lower — money invested gradually | Higher — full amount compounds from day one |
A numeric illustration (15 years, assumed 12%): investing ₹18,00,000 as a lumpsum on day one would grow to about ₹98.5 lakh, versus about ₹50.5 lakh for the same ₹18,00,000 contributed gradually as a ₹10,000 monthly SIP. The lumpsum ends higher only because the entire amount compounds for the full 15 years — but that assumes you already have ₹18 lakh available and are comfortable investing it all at a single market level. For most salaried investors, a SIP matches how income actually arrives and reduces the risk of investing everything just before a downturn. You can model a one-time investment using our lumpsum calculator.
Assumptions & Limitations
This calculator is a planning tool. Be aware of what it does and does not capture:
- Returns are assumed and constant. You choose the expected return; the calculator applies it every month. Real mutual fund returns fluctuate, can be negative in some years, and are never guaranteed.
- Results are gross of costs. The projection does not deduct the fund's expense ratio, any exit load, or transaction costs, so real outcomes are typically lower.
- Taxes are not included. Gains on mutual funds are taxable in India (rates depend on the fund type and holding period); the figures shown are pre-tax.
- No inflation adjustment. ₹50 lakh in 15 years will buy less than ₹50 lakh today; consider the real (inflation-adjusted) value when planning.
- Past performance is not indicative of future results. A historical average return is not a promise of future return.
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully.
Expert Verdict
"Treat the expected-return box as the honest part of this calculator, not the marketing part. Plug in 12% and the future looks spectacular; plug in a more sober number and it still looks worthwhile — and that's the real lesson. The value of a SIP isn't a specific maturity figure; it's that it makes you invest consistently and removes the temptation to time the market. Pick an amount you can sustain through good years and bad, start as early as you can, and let time — not a heroic return assumption — do the work. And remember the calculator shows gross figures: your real outcome is after costs and tax."
— The Tips4Banking Editorial Team · checked against primary sources before publishing
Frequently asked questions
What is a SIP in a mutual fund?
A SIP, or Systematic Investment Plan, is a way of investing a fixed amount in a mutual fund scheme at regular intervals — usually monthly. It is a method of investing, not a separate product, and it helps you invest with discipline through rupee-cost averaging.
How are SIP returns calculated?
The calculator uses the future-value formula FV = P × [((1+i)ⁿ − 1) ÷ i] × (1+i), where P is the monthly amount, i is the monthly rate (assumed annual return ÷ 12), and n is the number of months. It assumes a constant return; real returns vary.
Is a 12% SIP return guaranteed?
No. No mutual fund return is guaranteed. 12% is a commonly used illustration for long-term equity expectations, but actual returns can be higher, lower, or negative in any period. Mutual fund investments are subject to market risks.
Can I lose money in a SIP?
Yes. Because SIPs invest in market-linked mutual funds, the value can fall, especially over short periods. Rupee-cost averaging reduces timing risk but does not remove the risk of loss.
What is rupee-cost averaging?
Investing a fixed rupee amount each month means you automatically buy more units when prices are low and fewer when prices are high. Over time this can lower your average cost per unit compared with trying to time the market.
SIP or lumpsum — which gives higher returns?
For the same amount over the same period, a lumpsum invested upfront usually shows a higher projected return because the full sum compounds from day one. However, it carries more market-timing risk and requires the money upfront. A SIP suits regular income and spreads timing risk.
What is the minimum amount for a SIP?
Many mutual funds in India allow SIPs starting from as little as ₹100–₹500 per month, though minimums vary by scheme. Check the specific scheme's documents.
Can I stop, pause or change my SIP?
Yes. You can pause, stop, or modify a SIP at any time without penalty, and you can increase the amount over time using a "step-up" SIP. Stopping a SIP does not redeem your existing units; they remain invested.
Are SIP returns taxed in India?
Yes. Gains are taxable, with the rate depending on the type of fund (equity or debt) and how long you hold the units. Each SIP instalment is treated as a separate purchase for calculating the holding period. Consult the scheme documents or a tax professional for your situation.
Does this calculator account for expense ratio and exit load?
No. The projection is before the fund's expense ratio, any exit load, and taxes, so your real-world outcome will typically be lower than the figure shown.
What expected return should I use in the calculator?
That is your assumption to choose. Many investors model long-term equity SIPs with a conservative-to-moderate figure and also test a lower number to see the downside. We do not recommend a specific rate or fund.
Does a SIP guarantee I will beat inflation?
No. A SIP is a tool, not a guarantee. Whether it beats inflation depends on the fund's actual returns over your holding period, which are uncertain.
Sources
- Securities and Exchange Board of India (SEBI) — investor education materials on mutual funds and systematic investment plans. (sebi.gov.in / investor.sebi.gov.in)
- Association of Mutual Funds in India (AMFI) — mutual fund and SIP basics for investors. (amfiindia.com)
- Standard future-value of an annuity formula (financial mathematics); all worked examples calculated and verified by the Tips4Banking editorial team.
Figures are illustrative, assume a constant return, and exclude costs and taxes. Mutual fund investments are subject to market risks; read all scheme-related documents carefully.