SIP Calculator
Calculate Mutual Fund SIP Returns Instantly
Estimate how much your monthly SIP investment will grow over time using the power of compounding. Compare SIP with lump sum to choose the right strategy for your financial goals.
SIP Investment Calculator
SIP vs Lump Sum Comparison
What Is a SIP (Systematic Investment Plan)?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular intervals — typically monthly — into a mutual fund scheme. Rather than investing a large lump sum all at once, SIP lets you invest small amounts consistently, making it ideal for salaried individuals and beginners.
SIP harnesses two powerful financial principles: rupee cost averaging (buying more units when prices fall and fewer when they rise) and compounding (earning returns on your returns). Over long periods, these two forces combine to generate significant wealth from relatively modest monthly investments.
SIPs can be started with as little as ₹100 per month and can be directed toward equity funds, debt funds, hybrid funds, index funds, or ELSS (tax-saving) funds depending on your goals and risk appetite.
How to Use This SIP Calculator
- Monthly Investment: Enter the amount you plan to invest every month. Start with your current or planned SIP amount.
- Expected Annual Return: Enter your expected CAGR. Use 10–12% for equity funds, 6–8% for debt funds, or 7–9% for hybrid funds as a rough guide.
- Investment Period: Enter the number of years you plan to stay invested. The longer the period, the greater the compounding effect.
- Read Results: The calculator instantly shows maturity amount, total invested capital, and wealth gained. The progress bar shows how much of your final corpus is from returns vs. your own contributions.
- Compare with Lump Sum: Scroll to the SIP vs Lump Sum section to compare which approach would generate more wealth for the same total investment amount.
SIP Calculation Formula
The SIP maturity amount is calculated using the future value of a recurring annuity formula:
M = P × [((1 + r)^n − 1) / r] × (1 + r)
- M = Maturity amount (future value)
- P = Monthly SIP investment amount
- r = Monthly rate of return (Annual Rate ÷ 12 ÷ 100)
- n = Number of months (Years × 12)
For example, a monthly SIP of ₹5,000 at 12% per annum (r = 0.01) for 10 years (n = 120 months) gives a maturity amount of approximately ₹11,61,695.
SIP Return Reference Table
How ₹5,000/month grows at different rates and durations (approximate values):
| Duration | 8% p.a. | 12% p.a. | 15% p.a. |
|---|---|---|---|
| 5 Years | ₹3.67 L | ₹4.12 L | ₹4.46 L |
| 10 Years | ₹9.21 L | ₹11.62 L | ₹13.94 L |
| 15 Years | ₹17.37 L | ₹25.23 L | ₹33.78 L |
| 20 Years | ₹29.64 L | ₹49.96 L | ₹75.79 L |
| 25 Years | ₹47.87 L | ₹94.88 L | ₹1.65 Cr |
Total invested in 25 years = ₹15 lakh. At 12%, your wealth is over 6× the invested amount.
Real-World SIP Examples
Example 1: Building a Retirement Corpus
Ravi, age 30, invests ₹10,000/month in an equity mutual fund at an expected 12% p.a. return for 30 years. By age 60, his maturity amount would be approximately ₹3.53 crore — on a total investment of just ₹36 lakhs.
Example 2: Child's Education Fund
Meena starts a SIP of ₹5,000/month when her child is born. Over 18 years at 12%, she accumulates roughly ₹57 lakhs — enough to fund a quality engineering or medical degree without loans.
Example 3: Short-Term Goal
Arjun wants to buy a car in 3 years. He invests ₹15,000/month in a short-duration debt fund at 7% p.a. After 3 years, he accumulates approximately ₹5.92 lakhs from ₹5.4 lakhs invested.
SIP Tips and Best Practices
- Start early: Even a small SIP started at 25 beats a large SIP started at 35, thanks to compounding. Time in market matters more than amount invested.
- Step-up your SIP annually: Increase your SIP by 10% each year as your salary grows. This dramatically accelerates wealth creation.
- Do not stop during market corrections: Downturns are the best time for SIP — you buy more units at lower prices. Staying invested is key.
- Choose the right fund: Match fund type to your goal horizon. Equity funds for 7+ years, hybrid for 3–7 years, debt for under 3 years.
- Use ELSS for tax saving: ELSS mutual fund SIPs qualify for deduction under Section 80C (up to ₹1.5 lakh/year) with only a 3-year lock-in.
- Review, don't react: Review your SIP portfolio annually but avoid making decisions based on short-term market movements.
Frequently Asked Questions
SIP (Systematic Investment Plan) allows you to invest a fixed amount every month in a mutual fund. Instead of investing a large sum at once, you invest regularly, benefiting from rupee cost averaging — buying more units when prices are low and fewer when high.
Over long periods (10+ years), large-cap equity mutual funds in India have historically delivered 10–14% CAGR. 12% is commonly used as a conservative benchmark for long-term SIP planning. Actual returns vary based on fund selection and market conditions.
Most mutual funds allow SIP starting from ₹100 to ₹500 per month. Some platforms like Groww, Zerodha Coin, and Paytm Money offer SIPs from ₹100/month.
If inflation is 6% and your SIP earns 12%, your real return is approximately 6%. Equity mutual funds have historically beaten inflation over long periods, making SIP one of the best wealth creation tools for salaried individuals.
Rupee cost averaging means you automatically buy more mutual fund units when prices are low and fewer units when prices are high. Over time this averages out your cost per unit and reduces the impact of market volatility on your overall returns.
Yes. Most mutual funds allow you to pause SIP for 1–3 months or stop it entirely without penalty. Units already purchased remain invested and continue to earn returns. You can also restart the SIP at any time.
SIP spreads investment over time with fixed monthly amounts, reducing timing risk. Lump sum is a one-time investment that performs better in rising markets but carries more risk of investing at a market peak. SIP is generally preferred for salaried investors who receive regular income.