SIP Calculator — Systematic Investment Plan Returns
Calculate SIP returns for any monthly investment, rate, and tenure. See a Rs 5,000/month example, step-up SIP, and 5/10/15 year comparison. Free India SIP calculator.
Disclaimer: This tool is for educational purposes. Results are estimates and should not be taken as professional advice.
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month, regardless of market conditions. Over time, SIP investments benefit from rupee cost averaging — buying more units when markets fall and fewer when they rise — and from the power of compounding. Our SIP Calculator helps you estimate the future value of your monthly investments at a given expected annual return rate, so you can set realistic goals before you start or review whether your current SIP is on track.
Disclaimer: Mutual fund returns are not guaranteed. Past performance is not indicative of future results. Consult a SEBI-registered financial adviser before investing.
How SIP Works
When you invest via SIP, your monthly contribution buys units of a mutual fund scheme at the current Net Asset Value (NAV). Because the NAV fluctuates, you buy more units in market downturns and fewer in rallies — this averaging effect reduces the impact of volatility on your portfolio over the long term.
The magic of SIP is compounding: the returns you earn in one period generate returns in the next period. The longer you stay invested, the more dramatically compounding accelerates your corpus growth. A Rs 5,000/month SIP returning 12% CAGR builds to Rs 11.6 lakh in 10 years but Rs 49.9 lakh in 20 years — more than four times more, despite only twice the investment duration.
SIP Formula
M = P × {[(1 + r)^n − 1] / r} × (1 + r)
Where:
- M = Maturity value (future value of all SIP contributions)
- P = Monthly SIP amount (Rs)
- r = Monthly return rate = Annual CAGR / 12 / 100
- n = Total number of monthly instalments (Years × 12)
Worked Example — Rs 5,000/Month at 12% CAGR for 10 Years
- Monthly SIP: Rs 5,000
- Annual return: 12% CAGR
- Monthly rate r = 12 / 12 / 100 = 0.01
- Tenure n = 10 × 12 = 120 months
M = 5,000 × {[(1.01)^120 − 1] / 0.01} × 1.01 M = 5,000 × {[3.3004 − 1] / 0.01} × 1.01 M = 5,000 × 230.04 × 1.01 M ≈ Rs 11,61,695
- Total amount invested = Rs 5,000 × 120 = Rs 6,00,000
- Total returns earned = Rs 5,61,695
- Wealth ratio = 1.94× (nearly double your investment)
SIP Comparison Table — Rs 5,000/Month at 12% CAGR
| Tenure | Total Invested | Maturity Value | Gain | Wealth Ratio |
|---|---|---|---|---|
| 5 years | Rs 3,00,000 | Rs 4,12,432 | Rs 1,12,432 | 1.37× |
| 10 years | Rs 6,00,000 | Rs 11,61,695 | Rs 5,61,695 | 1.94× |
| 15 years | Rs 9,00,000 | Rs 25,22,880 | Rs 16,22,880 | 2.80× |
| 20 years | Rs 12,00,000 | Rs 49,95,740 | Rs 37,95,740 | 4.16× |
| 25 years | Rs 15,00,000 | Rs 94,88,170 | Rs 79,88,170 | 6.33× |
| 30 years | Rs 18,00,000 | Rs 1,76,49,570 | Rs 1,58,49,570 | 9.80× |
Assumes constant 12% CAGR, monthly compounding. Actual returns vary by fund and market conditions.
Step-Up SIP (Top-Up SIP)
A Step-Up SIP (also called a Top-Up SIP) lets you automatically increase your monthly SIP amount by a fixed percentage or amount each year — typically to keep pace with salary increments. This approach significantly accelerates corpus growth.
Example — Step-Up SIP with 10% Annual Increase:
- Start: Rs 5,000/month in Year 1
- Year 2: Rs 5,500/month
- Year 3: Rs 6,050/month
- After 20 years at 12% CAGR: approximately Rs 75–80 lakh (vs Rs 49.9 lakh for a flat Rs 5,000 SIP)
Most major AMCs (HDFC, SBI, ICICI, Mirae, Axis) allow step-up SIP instructions online through their app or CAMS/KFintech portals.
Which Mutual Fund Category for SIP?
| Category | Typical CAGR (10yr) | Risk | Best For |
|---|---|---|---|
| Large Cap Equity | 10–12% | Moderate | Long-term wealth, new investors |
| Flexi Cap / Multi Cap | 11–14% | Moderate-High | Core SIP for 10+ years |
| Mid Cap Equity | 12–16% | High | Aggressive growth, 10+ years |
| Small Cap Equity | 14–18% | Very High | High risk tolerance, 15+ years |
| ELSS (Tax Saving) | 11–14% | Moderate-High | Tax saving under Sec 80C + growth |
| Index Fund (Nifty 50) | 10–12% | Low-Moderate | Passive, low-cost core allocation |
| Debt / Liquid | 5–7% | Low | Emergency fund, 1–3 year goals |
Returns shown are historical ranges. Future returns are not guaranteed.
FAQ
Q: How is SIP return calculated? A: SIP returns are calculated using the compound interest formula for regular payments: M = P × {[(1 + r)^n − 1] / r} × (1 + r), where P is the monthly investment, r is the monthly return rate (annual CAGR / 12), and n is the total number of months. The result gives the estimated maturity value. To find CAGR from a completed SIP, use XIRR in Excel or Google Sheets on all investment and redemption cash flows.
Q: What is a good SIP return rate to assume for calculations? A: For long-term equity SIP planning (10+ years), most financial planners in India use 10–12% CAGR as a conservative-to-moderate assumption for diversified large cap or flexi cap funds. Mid cap SIPs may target 12–14%. Debt fund SIPs should use 5–7%. The actual return depends on the fund, market conditions, and time period — treat any projected figure as a planning estimate, not a guarantee.
Q: Is SIP better than lump sum investing? A: For most retail investors, SIP is better because it removes the need to time the market, spreads risk across market cycles, and builds investing discipline. Lump sum investing can outperform SIP in a strongly rising market (since more capital is invested earlier), but SIP typically outperforms lump sum in volatile or falling markets. If you have a large sum available, a combination — invest 30–40% as lump sum and start a SIP with the remainder — is a common balanced approach.
Q: Can I stop or pause a SIP? A: Yes. Most AMCs allow you to pause a SIP for 1–3 months or cancel it entirely with no penalty. Stopping a SIP does not close your mutual fund account — your existing units remain invested and continue to earn returns. You can restart a SIP in the same scheme at any time. However, frequent stops disrupt the rupee cost averaging benefit and reduce long-term corpus accumulation.
Q: What is the minimum SIP amount in India? A: Most equity mutual funds accept SIPs starting from Rs 500 per month, with some ELSS funds and index funds accepting Rs 100 per month. There is no legal maximum. Platforms like Groww, Zerodha Coin, and HDFC Sky allow SIPs across all major AMCs with minimum amounts as low as Rs 100–500. Higher frequency SIPs (weekly, daily) are available from some AMCs, typically with a minimum of Rs 300–500 per instalment.
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