Input type
Mutual Fund Planner
SIP calculator for monthly investing
Enter your monthly SIP amount, expected annual return, and investment duration to estimate your total corpus, invested amount, and wealth gained.
Monthly investing
Compounding growth
Corpus estimate
Best for
Mutual fund planning
Output
Invested + corpus
Enter SIP details
Fill in your monthly investment, expected return and tenure.
Before you calculate
- Monthly SIP amount is invested at the start of each month.
- Expected return is annualised — typically 10–14% for equity funds.
- Returns are compounded monthly.
SIP Calculator India – Detailed Guide
A Systematic Investment Plan routes a fixed sum into a mutual fund at regular intervals — typically monthly. This SIP calculator translates your monthly commitment and expected return into a projected corpus, so you can test how much to invest and for how long to hit a specific financial goal.
How the SIP future value formula works
Each monthly instalment is invested for a different length of time. The first instalment compounds for the full tenure; the last instalment earns just one month of returns. Adding up all those individual future values gives the total corpus:
FV = P × [((1 + r)n − 1) / r] × (1 + r)
where P = monthly SIP amount, r = monthly return rate (annual rate ÷ 12),
and n = total months. The factor (1 + r) at the end assumes contributions
are made at the start of each month (annuity due); calculators that assume end-of-month
contributions omit it and produce a slightly lower number.
Choosing a realistic return assumption
The rate you enter is the single biggest driver of the output and the hardest to predict. Use historical category averages as a planning anchor, not as a guarantee:
- Large-cap equity funds: 10–12% annualised CAGR for horizons of 10+ years. More stable but lower upside than smaller-cap categories.
- Flexi-cap / mid-cap funds: 12–15% is often cited for 15-year+ horizons, but comes with considerably higher interim volatility.
- Balanced / hybrid funds: 8–10% is a reasonable middle-ground assumption.
- Debt-oriented funds: 6–8% depending on duration and credit profile.
The SIP calculator is most useful when run at two or three different rates — for example 8%, 10%, and 12% — to see a range of outcomes. Over-relying on the high end creates false confidence; planning for the low end builds financial resilience.
Rupee-cost averaging and why it matters
Because SIP buys more units when the NAV is low and fewer units when the NAV is high, the average purchase cost per unit is typically lower than the simple average of NAVs over the same period. This mechanical smoothing of entry price — rupee-cost averaging — is the core risk-reduction feature of a SIP compared with a single lumpsum.
- Rupee-cost averaging does not guarantee a profit or prevent losses in a sustained downturn.
- Its benefit is most visible in volatile markets where NAVs swing widely between months.
- In a steadily rising market, a lumpsum invested at the start often outperforms the same total SIP amount because all units are bought at the (relatively lower) starting price.
When to consider stepping up your SIP
A flat SIP amount loses real purchasing power as income and inflation rise. Consider a step-up when any of these triggers apply:
- Annual salary increment — direct at least 50% of the increment into an SIP increase.
- Goal corpus is still far off when recalculated at a conservative return rate.
- A major expense (loan EMI, school fee) has ended, freeing up cash flow.
Even a 10% annual step-up on a ₹5,000 SIP running for 20 years roughly triples the final corpus compared with staying flat. Use the Step-up SIP calculator on this site to model the exact difference for your numbers.
SIP Calculator India – FAQs
How is SIP return calculated in this tool?
The calculator uses the standard SIP future-value formula: FV = P × [((1 + r)n − 1) / r] × (1 + r), where P is the monthly investment, r is the monthly return rate (annual rate ÷ 12), and n is the total number of months. It assumes a constant return and monthly compounding. Real-world NAV movements will cause actual results to deviate from this smooth projection.
What return rate should I assume for SIP planning?
Use category-based historical averages as anchors: 10–12% for large-cap equity funds over 10+ years, 8–10% for balanced or hybrid funds, and 6–8% for debt-oriented funds. Run the calculator at multiple rates (e.g. 8%, 10%, 12%) to see a range of outcomes rather than anchoring to a single optimistic number.
Does SIP work better than a lumpsum investment?
It depends on market conditions. In a volatile or falling market, SIP's rupee-cost averaging lowers your average purchase cost and often produces better outcomes than investing a lump sum at the start. In a steadily rising market, the lumpsum invested earlier is exposed to more years of compounding and may outperform. SIP is primarily about reducing timing risk and sustaining discipline, not guaranteeing higher returns.
What happens if I miss a SIP instalment?
Missing a month does not cancel the SIP. Most fund houses allow one or two bounces before the instruction is paused. You will simply miss purchasing units for that month; your existing units continue to be held. The impact on the final corpus depends on how many months are missed and at what market level — each skipped instalment reduces the compounding base slightly.
When should I consider stepping up my SIP amount?
Good triggers are a salary increment (divert part of the raise), the end of a loan EMI obligation freeing up cash flow, or noticing that the projected corpus at a conservative 8% rate falls short of your goal. Even a 10% annual step-up significantly accelerates corpus growth — use the Step-up SIP calculator on this site to model the exact impact for your numbers.
Are SIP returns taxed?
Yes. Each SIP instalment starts a separate holding period for tax purposes. For equity mutual funds, gains on units held over one year are long-term capital gains (LTCG) taxed at 12.5% above ₹1.25 lakh per year; gains on units held one year or less are short-term capital gains (STCG) taxed at 20%. Debt fund gains are added to income and taxed at slab rate. The SIP calculator shows pre-tax corpus; factor in tax on redemption for accurate post-tax planning.