SIP Calculator

What is a SIP?

A Systematic Investment Plan invests a fixed amount in a mutual fund every month. Regular investing builds discipline, and buying units at different prices averages your cost over time (rupee cost averaging). Over long periods, compounding means returns start earning returns, which is why SIP values grow faster in later years.

How the calculation works

This calculator assumes each instalment is invested at the start of the month and grows at a constant monthly rate derived from your expected annual return. The standard formula is FV = P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i), where i is the monthly rate and n the number of months. For example, ₹10,000 a month for 10 years at 12% grows to about ₹23.2 lakh, of which ₹12 lakh is your investment.

Step-up SIP

Most people’s income rises every year, so increasing the SIP by 5–10% annually is a powerful habit. A 10% yearly step-up can dramatically increase the final corpus compared with a flat SIP, because larger later instalments still have years to compound.

Choosing a realistic return

• Equity funds have historically delivered higher long-term returns but with large short-term swings.
• Debt and hybrid funds are steadier but usually lower.
• Use conservative assumptions: it’s better to be pleasantly surprised.

Important

Mutual fund returns are not guaranteed and past performance doesn’t guarantee future results. Real returns vary year to year, and taxes and expense ratios reduce them. Use this as a planning estimate. For a one-time investment, see the lumpsum calculator; for guaranteed options, compare the PPF and FD calculators.

Quick answers

What if I miss a SIP instalment? Usually nothing happens except that month’s investment is skipped; frequent misses can cancel the SIP. Can I stop anytime? Yes, open-ended SIPs can be stopped; ELSS has a 3-year lock-in per instalment.