What is a SIP?
A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund every month. Because you buy more units when prices are low and fewer when they are high, a SIP averages out your cost over time (rupee-cost averaging) and builds the habit of regular investing.
Returns on equity and hybrid funds are not guaranteed. This calculator shows what your SIP would be worth if it earned a steady annual return — use it to plan, not as a promise.
SIP return formula
SIP instalments are treated as being invested at the start of each month:
FV = P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i)
- FV = future value of the SIP
- P = monthly SIP amount
- i = expected annual return ÷ 12 ÷ 100
- n = number of monthly instalments
Example: ₹5,000 a month for 10 years at 12% a year: i = 0.01 and n = 120. You invest ₹6,00,000 and the SIP grows to about ₹11,61,695 — estimated returns of ₹5,61,695.
How much will my SIP grow?
| Monthly SIP | 5 years | 10 years | 15 years | 20 years |
|---|---|---|---|---|
| ₹1,000 | ₹82,486 | ₹2,32,339 | ₹5,04,576 | ₹9,99,148 |
| ₹5,000 | ₹4,12,432 | ₹11,61,695 | ₹25,22,880 | ₹49,95,740 |
| ₹10,000 | ₹8,24,864 | ₹23,23,391 | ₹50,45,760 | ₹99,91,479 |
Time does most of the work. ₹10,000 a month at 12% grows to about ₹23 lakh in 10 years but nearly ₹1 crore in 20 — the second decade adds three times as much as the first. Over 25 years the same SIP could reach about ₹1.9 crore.
Step-up SIP: raise your SIP every year
A step-up (top-up) SIP increases your monthly amount by a fixed percentage each year, in step with your salary. Starting at ₹5,000 a month and raising it by 10% a year for 20 years at 12%, you invest ₹34.4 lakh and the SIP could grow to about ₹99.4 lakh — roughly double the ₹50 lakh from a flat ₹5,000 SIP.
How to use this SIP calculator
- Enter your monthly investment.
- Enter the expected annual return. Long-term large-cap equity funds have historically returned around 10–12% a year; debt funds much less. Be conservative.
- Choose the time period in years.
- Turn on step-up if you plan to raise the SIP every year, and enter the percentage.
- See the estimated value, the amount you invest and the returns, with a year-by-year table you can download.
Things to keep in mind
- Returns vary. Markets rise and fall; actual returns can be higher or lower than the rate you enter.
- Taxes. Gains on equity funds held over 12 months are taxed as long-term capital gains at 12.5% above ₹1.25 lakh a year; short-term gains at 20%. Debt fund gains are taxed at your slab rate.
- Expense ratio. Fund expenses are already reflected in a fund's returns; direct plans cost less than regular plans.
- Stay invested. Stopping SIPs during a market fall breaks the averaging that makes SIPs work.
Frequently asked questions
How is SIP return calculated?
FV = P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i), where P is the monthly amount, i the monthly rate (annual return ÷ 12 ÷ 100) and n the number of months. The calculator applies it for you.
What will ₹5,000 a month in SIP become in 10 years?
At a 12% annual return, about ₹11.62 lakh, of which ₹6 lakh is your investment and ₹5.62 lakh the estimated return.
Is SIP return guaranteed?
No. Mutual fund returns depend on the market. The calculator assumes a steady return to help you plan; real returns will vary from year to year.
What is a step-up SIP?
A SIP whose monthly amount increases by a set percentage every year. It helps your investments keep pace with your income and can grow your corpus much faster.
Can I stop or change my SIP?
Yes. Open-ended mutual fund SIPs can be paused, changed or stopped at any time, usually without a charge (an exit load may apply if you redeem soon after investing).