SIP Calculator
A SIP (Systematic Investment Plan) lets you invest a fixed amount into a mutual fund every month, using rupee-cost averaging to smooth out market ups and downs. This calculator projects the future value of your SIP using a fixed assumed annual return, and separates the total amount you invested from the estimated gains.
How to use the sip calculator
- Enter the amount you plan to invest every month.
- Enter an expected annual return — equity mutual funds have historically returned roughly 10–14% a year over long periods, but returns are never guaranteed.
- Enter how many years you plan to keep investing, then compare the invested amount with the projected value.
Formula
Future Value = P × [((1 + i)n − 1) ÷ i] × (1 + i), where P is the monthly investment, i is the monthly rate (annual rate ÷ 12 ÷ 100), and n is the number of months (years × 12).
Worked examples
A ₹10,000 monthly SIP for 15 years
At an assumed 12% annual return, ₹10,000 a month for 15 years grows to roughly ₹50.3 lakh. You would have invested ₹18 lakh in total, so about ₹32.3 lakh is projected growth.
A ₹5,000 monthly SIP for 25 years
At 12%, this reaches roughly ₹94 lakh from a total investment of ₹15 lakh — showing how much time in the market matters more than the monthly amount alone.
SIP vs lump sum, and step-up SIPs
A lump sum invests everything on day one, so it benefits the most when markets rise steadily from that point — but it also carries the most timing risk if the market falls right after you invest. A SIP spreads purchases across many months (rupee-cost averaging), buying more units when prices are low and fewer when prices are high, which smooths out the average purchase price over time. Neither approach is universally better; SIPs suit regular income and reduce the stress of "timing the market," while lump sums can outperform in a sustained bull run.
A step-up SIP increases the monthly investment by a fixed percentage each year (commonly 10%), matching rising income over time. Even a modest step-up meaningfully increases the final corpus compared with a flat monthly amount over a long horizon, since later, larger instalments still have years left to compound. If your income grows over time, consider modelling a step-up SIP by re-running this calculator with a higher monthly figure every year or two, rather than assuming a single flat amount for the entire period.
Common mistakes to avoid
- Treating the projected return as guaranteed — mutual fund returns fluctuate every year; this is a flat-rate projection, not a promise.
- Stopping SIPs during a market downturn — rupee-cost averaging works best when you keep investing through both ups and downs.
- Ignoring expense ratios, exit loads and taxes (LTCG/STCG on equity funds), which reduce your real take-home return below the headline figure.
Frequently asked questions
How is SIP maturity value calculated?
Using the future-value-of-an-annuity-due formula: FV = P × [((1+i)^n − 1) ÷ i] × (1+i), where i is the monthly rate and n the number of instalments. It assumes a constant monthly investment and a constant rate of return.
What return rate should I assume?
Equity mutual funds in India have historically delivered roughly 10–14% annualised over long periods (10+ years), though any individual year can be sharply higher or lower. Debt funds and hybrid funds typically assume lower rates.
Is SIP better than a lump sum investment?
Neither is universally better — SIPs reduce timing risk by spreading purchases over time, which suits regular income and volatile markets, while a lump sum can outperform in a rising market. Many investors use both.
Are SIP returns taxed?
Yes. Equity mutual fund gains are taxed as capital gains (short-term or long-term depending on holding period), and debt fund taxation follows separate rules. This calculator does not deduct tax from the projected value.
Reviewed September 29, 2026 by the CalcSolver editorial team. Found a mistake? Tell us; see our editorial policy.