About the SIP Calculator
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. Because every instalment keeps compounding for the rest of the period, small monthly amounts can grow into a large corpus over ten, fifteen or twenty years.
This SIP calculator estimates the future value of your SIP, the total amount you put in and the estimated gain. You can also add a yearly step-up, which means increasing your SIP by a fixed percentage every year as your income grows. The growth chart shows how the gap between money invested and money earned widens over time.
How to use it
- Enter how much you plan to invest every month.
- Enter the yearly return you expect. Past equity fund returns do not guarantee future returns, so try a cautious figure too.
- Enter the number of years you plan to stay invested.
- Optionally enter a yearly step-up percentage.
- Read the estimated value, total invested and estimated returns, and look at the growth chart.
Formula
Without step-up: Future value = P × ((1 + i)^n − 1) ÷ i × (1 + i), where P is the monthly amount, i is the monthly return (yearly rate ÷ 12 ÷ 100) and n is the number of months. With step-up, each year’s instalment is raised by the step-up percentage and every instalment is compounded separately until the end.
Example
A SIP of ₹5,000 a month for 10 years at an expected 12% a year: you invest ₹6,00,000 and the estimated value is about ₹11,61,695, a gain of about ₹5,61,695. With a 10% yearly step-up the estimated value rises to about ₹16,87,000 on a total investment of about ₹9,56,000.
The power of starting early
Time matters more than the amount. ₹5,000 a month for 20 years at 12% grows to roughly ₹50 lakh, while the same SIP for 10 years reaches only about ₹11.6 lakh. The extra ten years double the money you put in but more than quadruple the final value, because the returns themselves start earning returns.
Why use a step-up SIP?
Most people’s income rises over the years, but their SIP stays the same. A step-up of 5–10% a year keeps your investing in line with your income and can make a big difference to the final corpus without feeling like a burden in the early years.
Returns are not guaranteed
Mutual fund returns go up and down with the market. The calculator assumes a steady yearly return, but real returns vary from year to year and can be negative for a while. Exit loads, expense ratios and capital gains tax also reduce what you finally receive. Use the result to plan, not as a promise.
Frequently asked questions
What return should I assume?
Many people use 10–12% for long-term equity funds and 6–8% for debt funds. Try a lower figure as well to see a cautious outcome.
Is SIP better than a lump sum?
A SIP spreads your investment over time and suits regular income. A lump sum invested early can grow more if markets rise, but carries more timing risk.
Does this include tax?
No. Capital gains tax, exit loads and fund expenses are not included.
Can I stop or change my SIP?
With most mutual funds you can pause, increase or stop a SIP at any time. Check your fund house’s rules.