SIP Calculator
Estimate the maturity value of a monthly SIP in rupees or any currency, add a yearly step-up, compare with a lump sum and find the SIP needed for a goal.
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About this toolWhat is the SIP Calculator?
A SIP (systematic investment plan) puts a fixed amount into a mutual fund every month. This SIP calculator estimates what those instalments grow to at an expected annual return, splits the result into the amount you invested and the estimated gains, and draws both year by year.
It goes further than a basic SIP calculator in three ways. A step-up field raises the instalment each year, which is how most salaried investors actually invest. A lump-sum mode shows the same goal funded in one go. And a goal box works backwards from a target such as ₹1 crore to the monthly SIP it needs.
Amounts default to rupees with Indian digit grouping (lakh and crore), and you can switch the currency to dollars, euros, pounds and others; the arithmetic is the same in any currency.
- SIP future value with optional annual step-up
- Choice of monthly rate convention and instalment timing
- Lump-sum mode for comparison
- Monthly SIP needed for a goal amount
- Rupee formatting in lakh and crore, with other currencies available
How to use the SIP Calculator
- Choose Monthly SIP or Lump sum and pick a currency.
- Enter the monthly instalment (or one-time amount), the expected annual return and the number of years.
- For a SIP, add an annual step-up percentage if you plan to raise the instalment each year.
- Read the estimated value, total invested and gains, then switch between the chart and the year-end table.
- Type a goal amount to see the monthly SIP that would reach it at the same return and duration.
Worked examples
Ten-year SIP
Input
₹10,000 a month, 12% expected return, 10 years
Output
Value ₹23,23,391; invested ₹12,00,000; gains ₹11,23,391
Uses annual ÷ 12 and start-of-month instalments. With the effective-rate convention the same inputs give ₹22,40,359, and with end-of-month instalments ₹23,00,387.
Same SIP with a 10% annual step-up
Input
₹10,000 a month rising 10% a year, 12%, 10 years
Output
Value ₹33,74,326 on ₹19,12,491 invested
Raising the SIP in line with salary increases adds over ₹10 lakh of final value, most of it from the larger instalments of the later years.
Working back from a ₹1 crore goal
Input
Goal ₹1,00,00,000, 12%, 10 years and then 20 years
Output
About ₹43,041 a month over 10 years; about ₹10,009 a month over 20 years
Doubling the time cuts the monthly amount to less than a quarter, which is the strongest argument for starting early.
Background and insight
Most SIP calculators, and the formula usually printed for SIPs, treat each instalment as invested at the start of the month and use a monthly rate equal to the annual rate divided by 12: FV = P × [((1 + i)^n − 1) / i] × (1 + i). With ₹5,000 a month at 12% for 10 years this gives ₹11,61,695, the figure you will see on many broker and bank calculators. This is the default here.
Some fund houses use a slightly different monthly rate. HDFC Mutual Fund's calculator and Groww convert the annual return with i = (1 + annual)^(1/12) − 1, so that 12% means exactly 12% a year rather than the 12.68% effective rate that 1% a month compounds to. That produces a lower figure (about ₹22.40 lakh instead of ₹23.23 lakh for ₹10,000 a month over 10 years). Both are legitimate; open "Calculation convention" to match the calculator you are comparing against.
Real mutual fund returns are not smooth. Each instalment buys units at that day's NAV, so the actual result depends on the sequence of market prices, and fund returns are reported after the expense ratio. Treat the output as what a steady return would produce, not a forecast; SEBI-registered fund houses carry the same caveat on their own calculators.
Common use cases
Planning a monthly investment
Pick an instalment you can afford and see the corpus it could build over 10, 15 or 20 years.
Valuing a step-up
See how much a yearly increase in the SIP changes the final value compared with a flat amount.
Goal-based saving
Turn a target such as a child's education fund into a monthly SIP figure.
Checking another calculator
Switch the rate convention and timing to reconcile results from a fund house or broker.
Tips and limitations
- Run a lower return as well as your expected one; equity funds have gone through multi-year stretches of low returns.
- Gains are before tax. In India, equity fund gains held over 12 months are taxed as long-term capital gains above an annual exemption, and each SIP instalment has its own holding period.
- The calculator does not deduct exit loads or a separate expense ratio. Use a return net of costs.
- A step-up only helps if you keep raising the SIP; set a reminder for the same month each year.
- Mutual fund investments are subject to market risks. This tool illustrates arithmetic and is not a recommendation of any fund.
Frequently asked questions
How is SIP return calculated?
Each monthly instalment compounds for the months it stays invested. Summed up, that is FV = P × [((1 + i)^n − 1) / i] × (1 + i), where P is the instalment, n the number of months and i the monthly rate. The final (1 + i) reflects investing at the start of each month.
What will ₹5,000 a month in SIP be worth after 10 years?
At a steady 12% a year with annual ÷ 12 compounding it comes to about ₹11,61,695 on ₹6,00,000 invested. At 10% it is about ₹10,32,760. Actual results depend on the fund and market path.
What is a step-up SIP?
A SIP whose instalment rises by a fixed percentage or amount every year. A ₹10,000 SIP with a 10% step-up becomes ₹11,000 a month in year two and ₹12,100 in year three. Many fund houses let you set this up when you register the SIP.
Why do different SIP calculators give different answers?
Mainly because of two conventions: whether the monthly rate is the annual rate ÷ 12 or (1 + annual)^(1/12) − 1, and whether instalments are invested at the start or end of the month. This calculator lets you pick both so you can match any of them.
How much SIP do I need for ₹1 crore?
At a steady 12% a year, about ₹43,000 a month for 10 years, about ₹20,000 for 15 years or about ₹10,000 for 20 years. Enter your own goal, return and duration to get the exact figure.
Is SIP better than a lump sum?
At the same steady return a lump sum ends higher because all the money is invested from day one. A SIP suits money that arrives monthly from salary, and it spreads purchases across market prices. The right choice depends on when you have the cash, not on the formula.
Is there an in-depth guide to the SIP Calculator?
Yes. “APY, Bond Yields and SIP Returns: Reading the Rate Correctly” covers the background, how it works, common pitfalls and worked examples. Read the full guide.
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