SIP Calculator
Calculate how your monthly SIP investment grows over time. Enter your monthly amount, expected return, and tenure to see total future value, total invested, and wealth gained — for any mutual fund goal.
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How SIP Calculator Works
What is SIP?
A Systematic Investment Plan (SIP) is a method of investing in mutual funds where a fixed amount is invested at regular intervals — typically monthly. Rather than timing the market with a lump sum, SIP invests small, consistent amounts that benefit from rupee-cost averaging and the power of compounding over time.
SIPs are the most popular way for retail investors in India to invest in equity mutual funds, debt funds, hybrid funds, and index funds. Most mutual fund houses support SIP investments starting from just ₹500 per month, making wealth creation accessible to everyone.
How SIP Works
Each month, your chosen SIP amount is automatically debited from your bank account and invested in your selected mutual fund at the current Net Asset Value (NAV). Over time, this creates a powerful wealth-building engine:
- When markets are low, your fixed SIP amount buys more units — reducing your average cost per unit.
- When markets are high, you buy fewer units — but your existing holdings grow in value.
- This automatic averaging is called Rupee Cost Averaging — it removes the pressure of timing the market.
- Each month's corpus earns returns on all previous months' returns — this is compounding at work.
The SIP Formula
The standard future value formula for a Systematic Investment Plan is:
FV = P × [((1 + r)n − 1) ÷ r] × (1 + r)
Where P is the monthly SIP amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. The final × (1 + r) accounts for payments being invested at the start of each period (annuity due), which is the standard used by all major Indian SIP calculators.
Worked Example
₹5,000/month at 12% p.a. for 10 years (120 months):
- Monthly rate: r = 12 ÷ 12 ÷ 100 = 0.01
- Growth factor: (1.01)120 = 3.300
- Total invested = 5,000 × 120 = ₹6,00,000
- Total future value = ₹11,61,695
- Wealth gained = 11,61,695 − 6,00,000 = ₹5,61,695
Power of Compounding — Time Matters Most
Starting early is the single most powerful lever in SIP investing. The table below shows how the same monthly investment grows dramatically over time:
| Monthly SIP | Rate | 10 Years | 20 Years | 30 Years |
|---|---|---|---|---|
| ₹5,000 | 10% p.a. | ₹10.3L | ₹38.3L | ₹1.14 Cr |
| ₹5,000 | 12% p.a. | ₹11.6L | ₹50.0L | ₹1.76 Cr |
| ₹10,000 | 12% p.a. | ₹23.2L | ₹1.0 Cr | ₹3.53 Cr |
Common SIP Mistakes to Avoid
- Stopping SIP during market falls — Market corrections are exactly when SIP buys the most units at lower prices. Stopping during a fall defeats the purpose of rupee-cost averaging.
- Too short a tenure — Compounding accelerates dramatically after year 10. A 20-year SIP delivers far more than two consecutive 10-year SIPs.
- Ignoring inflation — A 12% nominal return with 6% inflation gives a real return of only ~6%. Factor inflation into your target corpus.
- Not stepping up — Increasing your SIP amount by 10% each year (Step-up SIP) can more than double your final corpus with minimal lifestyle impact.
- Switching funds frequently — Frequent fund-switching resets the compounding clock and may trigger capital gains tax.
SIP vs Lump Sum
Both methods use the same compounding principle. SIP suits investors who receive a regular salary and prefer automated investing, want to reduce timing risk through rupee-cost averaging, and are building towards a long-term goal. A lump sum investment may be more effective when deploying a windfall in a flat or rising market — use our Compound Interest Calculator to model lump sum scenarios.
For loans alongside your investment plan, the EMI Calculator helps you balance EMI commitments against your monthly SIP capacity.
Accuracy & Sources
Last reviewed: July 2026. Formula source: Standard annuity-due SIP formula — used by AMFI and major Indian fund houses. All calculations run in your browser. No data is sent to any server.
Frequently Asked Questions
A Systematic Investment Plan (SIP) is a way to invest a fixed amount in a mutual fund at regular intervals, typically monthly. Each installment buys units at the current NAV. Over time, you benefit from rupee-cost averaging (buying more units when markets are low) and compounding (each month's corpus earns returns on all previous returns). SIPs are available for equity, debt, hybrid, and index mutual funds, starting from as little as ₹500 per month.
12% is a commonly used benchmark for equity mutual fund SIP projections in India, based on the historical long-term average return of large-cap equity indices like the Nifty 50 (which has delivered roughly 12–14% CAGR over 20+ year periods). However, actual returns vary by fund category, time period, and market conditions. Equity funds carry risk; past returns do not guarantee future results. Use 10–12% for equity SIPs in long-term projections and 6–8% for debt or balanced fund SIPs.
Assuming a 12% annual return, approximate monthly SIP amounts to reach ₹1 crore: ₹5,270/month for 25 years; ₹10,000/month for 20 years; ₹20,000/month for 15 years; ₹43,000/month for 10 years. Starting 5 years earlier roughly halves the required monthly investment — time is your most valuable asset in SIP investing. Use the calculator above to model your exact goal.
This calculator uses the standard annuity-due SIP formula: FV = P × [((1 + r)^n − 1) / r] × (1 + r), where P is the monthly SIP amount, r is the monthly rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. The × (1 + r) factor accounts for payments made at the beginning of each period, which is the convention used by all major Indian mutual fund houses and AMFI.
If you stop your SIP, the invested units remain in your mutual fund — they are not redeemed or lost. The existing corpus continues to grow at the fund's returns. However, you lose the benefit of future rupee-cost averaging and compounding on new contributions. If you cannot continue the full amount, consider reducing the SIP amount rather than stopping entirely. Most fund houses allow you to pause SIP for 1–3 months without cancellation.
A Step-up SIP (also called Top-up SIP) automatically increases your monthly SIP amount by a fixed percentage or amount each year, aligned with your income growth. For example, starting at ₹5,000/month with a 10% annual step-up results in ₹5,500 in year 2, ₹6,050 in year 3, and so on. Over 20 years, a Step-up SIP can generate 40–60% more corpus than a flat SIP at the same initial amount. It is highly recommended for salaried investors who expect annual increments.
SIP in equity mutual funds has historically outperformed Fixed Deposits over 10+ year periods in India. FD rates currently range from 6–7.5% p.a. (taxable), while equity SIPs have historically returned 10–14% CAGR over long periods. However, FDs offer guaranteed returns and zero market risk, making them suitable for capital preservation and short-term goals (under 3 years). For long-term wealth creation (5+ years), equity SIP generally wins on post-inflation, post-tax returns. Use our FD Calculator to compare maturity amounts side by side.