How to use the SIP calculator
- Monthly investment — the amount debited for the SIP every month, in rupees.
- Expected annual return — your assumption for the fund. Equity funds are often projected at 10–12% for planning, debt funds lower; neither is guaranteed.
- Investment period in years, and an optional annual step-up if you intend to raise the instalment each year as your income grows.
The headline is the estimated maturity value. The bar separates the money you put in from the estimated growth, and the table tracks both year by year.
What a SIP is
A Systematic Investment Plan buys units of a mutual fund for a fixed sum on a fixed date every month, usually through an auto-debit mandate — some months at high prices, some at low. Over time the holding compounds because every unit you own shares in the fund’s growth.
The SIP formula
FV = M × ((1 + i)N − 1) ÷ i × (1 + i)
where M is the monthly instalment, i is the monthly rate (annual return ÷ 12 ÷ 100) and N is the number of instalments. The final (1 + i) is there because each instalment is invested at the start of the month and earns that month’s return too — the convention Indian fund houses and investment apps use. With a step-up, the calculator runs the same compounding month by month and raises the instalment on each anniversary.
Worked example: ₹5,000 a month for 10 years at an assumed 12% a year. i = 0.01 and N = 120, so FV = 5,000 × ((1.01120 − 1) ÷ 0.01) × 1.01 = ₹11,61,695. You invest ₹6,00,000 in total; the remaining ₹5,61,695 is estimated growth — an absolute return of about 94% on the amount invested.
Time does the heavy lifting
The same ₹5,000 at 12%, held for longer:
| Period | Invested | Estimated value | Estimated gain |
|---|---|---|---|
| 5 years | ₹3,00,000 | ₹4,12,432 | ₹1,12,432 |
| 10 years | ₹6,00,000 | ₹11,61,695 | ₹5,61,695 |
| 15 years | ₹9,00,000 | ₹25,22,880 | ₹16,22,880 |
| 20 years | ₹12,00,000 | ₹49,95,740 | ₹37,95,740 |
Doubling the period from 10 to 20 years more than quadruples the maturity value, because the earlier instalments compound for far longer.
Step-up SIP
A step-up (or top-up) SIP raises the instalment by a fixed percentage every year. Starting at ₹5,000 with a 10% annual step-up, the instalment in year 10 is about ₹11,790; over 10 years you invest ₹9,56,245 and the estimated value is ₹16,87,163 against ₹11,61,695 for a fixed SIP. Linking the step-up to your expected salary growth keeps the plan realistic.
Rupee-cost averaging, honestly
A fixed sum buys more units when prices are low and fewer when they are high, so a SIP’s average cost per unit ends up below the average price over the period, and you never have to time the market. It does not guarantee a profit: if the fund declines over the whole period, so does your investment. The return you enter is a planning assumption, nothing more.
SIP vs lump sum
A lump sum invested at the start compounds for the full period: ₹6,00,000 at 12% for 10 years grows to about ₹19,80,232, well above the ₹11,61,695 from the same total drip-fed over ten years, because the SIP money is invested for less time on average. The SIP’s advantage is that it works from a monthly income and avoids putting everything in at a market peak. Compare lump-sum scenarios with the compound interest calculator.
Tax and costs
Gains are taxed when you redeem, and each SIP instalment has its own purchase date for the holding period. The rates and holding-period rules for equity and debt funds have changed several times, so check the current rules or ask a tax advisor. Expense ratios and exit loads also trim the realized return. Nothing here is investment advice — a SEBI-registered advisor can help you choose funds and amounts, and the savings goal calculator works backwards from a target amount.
Frequently asked questions
How much will ₹5,000 a month grow to in 10 years?
At an assumed 12% a year, about ₹11,61,695 — ₹6,00,000 invested plus roughly ₹5,61,695 of estimated growth. At 10% it would be closer to ₹10,32,760.
Is the return in a SIP calculator guaranteed?
No. The rate you enter is only an assumption used to project a figure. Mutual fund returns move with the market and can be lower, or negative, over a given period.
What return should I assume?
Use a conservative figure for the type of fund rather than a recent good year. Many planners use around 10–12% for diversified equity funds over long periods and less for debt or hybrid funds, then revisit the plan every year.
What is a step-up SIP?
A SIP whose instalment rises by a fixed percentage every year, for example 10%. It lets the investment keep pace with a growing salary and sharply increases the final value compared with a fixed instalment.
Can I stop or pause a SIP?
Yes. Most funds let you pause for a few months or cancel the mandate at any time without a penalty, though an exit load may apply if you redeem units within the fund’s stated period.
Last updated: October 9, 2026