Financial calculatorsSIP Calculator
SIP Calculator
See how much a monthly SIP in mutual funds can grow into.
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- Invested amount
- ₹45 L
- Est. returns
- ₹81 L
- Total value
- ₹1.3 Cr
Illustration at the rate you set, not a forecast. Mutual fund investments are subject to market risks; read all scheme related documents carefully.
Plan this with us →How this calculator works
Enter the monthly amount, the number of years and an assumed yearly return. The calculator compounds each instalment from the month it is invested, and the step-up option raises the SIP by a fixed percentage every year, the way most investors raise it with their income. The return is an assumption, not a forecast; mutual fund returns vary with the market.
What is a SIP calculator?
A SIP calculator estimates what a fixed monthly investment in a mutual fund could grow into over a chosen number of years at an assumed yearly return. Enter the monthly amount, the period and the return; it shows what you invested, the growth on top and the final value. The step-up option raises the SIP by a set percentage every year.
How is it calculated?
FV = P × [((1 + i)^n − 1) / i] × (1 + i)
- P is the monthly SIP amount
- i is the monthly rate: the yearly return divided by 12
- n is the number of instalments: years × 12
- FV is the final value, each instalment compounding from the month it is invested
With a step-up, P rises by the chosen percentage at the start of each year.
How to read the result
- 01The return is an assumption. Equity funds have delivered a wide range of ten-year outcomes, and no rate is promised.
- 02Exit loads, the expense ratio and tax are not deducted, so the amount in hand is lower than shown.
- 03Time matters more than the rate: ₹5,000 a month for 20 years ends near ₹50 lakh at 12%; ₹10,000 for 10 years ends near ₹23 lakh.
Questions people ask
Use a rate that fits the fund category, not a hoped-for number: 10% to 12% a year is a common planning assumption for long-horizon equity funds, 8% to 10% for hybrid, 6% to 7% for debt. Run it at two rates and plan on the lower one.
The arithmetic is exact for the inputs you give it. The uncertainty is the return assumption: mutual fund returns move with the market every year, so the final value will differ from the estimate. Treat the result as a planning range and check it once a year.
Neither is better in every case. A SIP suits a monthly income and spreads purchases across market highs and lows; a lumpsum suits money already in hand and gives it the longest time to compound. Many investors do both: a SIP from salary and a lumpsum, or an STP, when a bonus arrives.
A SIP whose monthly amount rises by a fixed percentage every year, say 10%, so it keeps pace with a rising income. In the example above, a 10% step-up over 10 years takes the final value from about ₹23 lakh to about ₹34 lakh at the same 12% assumption.
Most schemes accept a SIP from ₹500 a month, and several from ₹100; there is no upper limit. The amount can be raised, paused or stopped at any time without a penalty, though an exit load may apply if units are sold within the scheme's exit-load period.
Gains are taxed when you redeem. For equity funds, units held over 12 months pay 12.5% on long-term gains above ₹1.25 lakh in a financial year; units held 12 months or less pay 20%. Each instalment has its own purchase date. Debt fund gains are taxed at your slab. Confirm with a chartered accountant.
As an illustration at the rate you chose. A SIP is a way of investing in a mutual fund, so the actual value moves with the market and mutual fund investments are subject to market risks. Check the figure once a year and raise the SIP as your income grows.
The fund house skips that month with no penalty, though your bank may charge for a failed auto-debit. Most fund houses cancel the SIP after three consecutive failed instalments, after which a fresh SIP has to be registered.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Figures are illustrations at an assumed rate, not a forecast. Talk to us to match a plan to your goals.