SIP Calculator

How to use SIP Calculator

1. 1
   Enter your monthly SIP amount

   Type the amount you plan to invest every month. Use the quick-select buttons (₹1K, ₹3K, ₹5K, ₹10K, ₹25K) to pick a common amount instantly.

2. 2
   Set the expected annual return rate

   Use the slider or type a percentage. Equity mutual funds in India have historically returned 12–15% annually over long periods. The default is 12%.

3. 3
   Choose your investment period

   Drag the slider or type the number of years. Use the milestone chips (5Y, 10Y, 15Y, 20Y) for common investment horizons. Longer periods significantly increase compounding benefits.

4. 4
   Optionally enable step-up SIP

   Open the Advanced section and set an annual step-up percentage to simulate increasing your SIP each year as your income grows — typically matching your salary hike of 5–10%.

5. 5
   Review your maturity value and growth chart

   The results show your total corpus, amount invested, and wealth gained. The growth chart visualises the compounding curve, and the year-by-year table breaks down each year's balance and returns.

Frequently Asked Questions

What is a SIP (Systematic Investment Plan)?

A SIP is a method of investing a fixed amount regularly — usually monthly — into a mutual fund scheme. Instead of investing a lump sum, you invest small amounts periodically. This builds discipline, benefits from rupee cost averaging (buying more units when prices are low), and harnesses the power of compounding over time.

How is the SIP return calculated?

The calculator uses the standard SIP future value formula: FV = PMT × [((1 + r)^n − 1) / r] × (1 + r), where PMT is the periodic investment, r is the periodic interest rate (annual rate divided by periods per year), and n is the total number of periods. For step-up SIP, each year's contribution is increased by the step-up percentage and compounded forward.

Is a 12% annual return realistic for SIP?

Historically, diversified equity mutual funds and index funds tracking Nifty 50 or Sensex have delivered 12–15% CAGR over 10–20 year periods. However, returns are not guaranteed — markets fluctuate, and actual returns depend on the fund chosen and market conditions. The 12% default is a commonly used benchmark for long-term equity SIP planning.

What is step-up SIP and should I use it?

Step-up SIP (also called top-up SIP) means increasing your SIP amount by a fixed percentage each year — typically matching your annual salary increment of 5–10%. For example, starting at ₹5,000/month and stepping up 10% annually means investing ₹5,500 in year 2, ₹6,050 in year 3, and so on. This significantly boosts your final corpus while keeping monthly commitments manageable.

How much monthly SIP do I need to reach ₹1 Crore?

It depends on your return rate and time horizon. At 12% annual returns: roughly ₹4,350/month for 20 years, ₹2,200/month for 25 years, or ₹1,100/month for 30 years. Use the Goal Calculator on this page — enter ₹1,00,00,000 as your target to get the exact required monthly SIP for your chosen period and return rate.

SIP vs lump sum — which is better?

SIP is generally better for salaried investors with regular income as it removes the need to time the market. Rupee cost averaging means you buy more units when NAV is low and fewer when it's high, reducing average cost over time. Lump sum can outperform in a consistently rising market, but SIP reduces risk in volatile markets and builds better financial discipline.

Are SIP returns taxable in India?

Yes. For equity mutual fund SIPs, each instalment is treated as a separate investment. Gains on units held for more than 1 year are Long-Term Capital Gains (LTCG), taxed at 12.5% above ₹1.25 lakh per year. Gains on units held for less than 1 year are Short-Term Capital Gains (STCG), taxed at 20%. ELSS (tax-saving) SIPs qualify for deduction under Section 80C up to ₹1.5 lakh annually.

Can I change or stop my SIP anytime?

Yes, most mutual fund SIPs are completely flexible. You can increase, decrease, pause, or stop your SIP at any time without penalty — though your fund may require a few business days' notice before the next debit date. Stopping a SIP does not redeem your existing units; they remain invested until you explicitly redeem them.

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