SIP Calculator
Estimate the wealth you can create through disciplined monthly mutual fund investments.
Calculate your SIP Returns
Summary
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How Does a SIP Calculator Work?
A Systematic Investment Plan (SIP) is one of the most effective ways for retail investors to participate in equity mutual funds. By investing a predetermined amount every month, you benefit from compounded growth and mitigate market volatility through rupee cost averaging.
M = Maturity Amount (Future Value)
P = Monthly investment amount (₹)
i = Periodic monthly interest rate = Annual rate ÷ 12 ÷ 100
n = Total number of monthly installments (Tenure in years × 12)
The Power of Compounding: SIP Growth Illustration
The table below demonstrates how a regular monthly SIP of ₹10,000 grows over different time horizons assuming a 12% annual return:
| Tenure | Total Invested | Estimated Gains | Total Maturity Value |
|---|---|---|---|
| 5 Years | ₹6,00,000 | ₹2,24,864 | ₹8,24,864 |
| 10 Years | ₹12,00,000 | ₹11,23,391 | ₹23,23,391 |
| 15 Years | ₹18,00,000 | ₹32,45,760 | ₹50,45,760 |
| 20 Years | ₹24,00,000 | ₹75,91,479 | ₹99,91,479 |
| 25 Years | ₹30,00,000 | ₹1,59,76,351 | ₹1,89,76,351 |
Key Benefits of SIP Investing
Rupee Cost Averaging
Automates buy-the-dip strategy. When NAV falls, you receive more units; when NAV rises, your existing units increase in value.
Financial Discipline
Encourages a 'pay yourself first' mentality by automating monthly deductions right after salary credit.
No Need to Time the Market
Removes emotional decision-making. Staying invested across market cycles yields better risk-adjusted returns.
Step-Up SIP Flexibility
You can increase your SIP by 10% each year as your income grows, significantly multiplying your ultimate retirement corpus.
Frequently Asked Questions
What is the difference between SIP and Lumpsum investment?
In a SIP, you invest a fixed amount periodically (e.g. monthly), which minimizes timing risk. In a Lumpsum investment, you invest the entire amount at once, which performs best when markets are undervalued.
Can I stop or pause my SIP anytime?
Yes. Mutual fund SIPs in open-ended schemes carry no lock-in (except ELSS tax-saving funds which have a 3-year lock-in). You can pause, modify, or stop your SIP anytime without penalty.
Are mutual fund SIP returns taxable in India?
Yes. Equity fund gains held for more than 1 year are classified as Long Term Capital Gains (LTCG) and taxed at 12.5% on gains exceeding ₹1.25 lakh per financial year. Short-term gains (under 1 year) are taxed at 20%.
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