SIP Calculator

What Is a SIP?

A SIP (systematic investment plan) invests a fixed amount in a mutual fund every month. Over time, each instalment grows and the returns themselves earn returns - the effect of compounding. This calculator estimates what a monthly SIP, a step-up SIP that rises every year, or a one-time lumpsum investment could grow to.

How to Use It

1. Choose Monthly SIP, Step-up SIP or Lumpsum.
2. Enter the amount, the expected yearly return and the number of years.
3. For a step-up SIP, enter how much you will raise the SIP each year.
4. Enter an inflation rate to see the result in today's money.

Example

A SIP of ₹5,000 a month for 20 years at an expected 12% a year grows to about ₹49,95,740. You invest ₹12,00,000, so the estimated gain is ₹37,95,740 - three times what you put in. At 6% inflation, that corpus would buy what about ₹15,57,695 buys today. Raising the SIP by 10% every year instead makes a far bigger difference than waiting for higher returns.

How the Calculation Works

Each instalment is invested at the start of the month and grows at the yearly rate divided by 12, compounded monthly - the same method used by most Indian mutual fund calculators. A lumpsum grows once a year at the rate you enter. The table shows the invested amount and estimated value at the end of every year.

Choosing a Return Rate

Use a conservative figure. Long-term equity fund returns in India have often been in the 10% to 12% range, but they vary widely between funds and periods, and past returns do not guarantee future ones. Debt funds usually return less. Try a few rates to see a range of outcomes.

Limitations

Real returns go up and down every year, so your actual value will differ. The calculator does not include expense ratios, exit loads or tax on gains. To withdraw a regular amount from a corpus, use the SWP Calculator; to measure a past investment's growth, use the CAGR Calculator.