SIP Calculator
Future value of a Systematic Investment Plan at an expected annual return.
What this calculator does
A Systematic Investment Plan (SIP) is one of those ideas that sounds boring until you actually look at what it does over 15-20 years. You put in a fixed amount every month into a mutual fund, buy more units when the market's down and fewer when it's up, and let compounding do its thing. That's it. No timing, no news-checking, no drama.
In India, SIPs are the default entry point into equity for a reason: SEBI-regulated, transparent, accessible for as little as ₹500/month, and structurally biased toward long-term wealth-building. Over 25 years, a modest ₹10,000/month SIP at 12% CAGR grows to roughly ₹1.9 crore. Same SIP for 30 years: ~₹3.5 crore. Those extra 5 years nearly double the outcome, because compounding is exponential, not linear.
This calculator lets you play with three variables: monthly amount, expected return, and duration. Play with them honestly. Bump the SIP up by ₹2,000 and see what happens. Extend the timeline by 5 years. The point isn't to find a magic combination — it's to build the emotional conviction that boring monthly investing actually works.
FV = P × [((1+i)^n − 1)/i] × (1+i), i = r/12Variables explained
- Monthly investment (P)
The fixed amount you invest each month. Start with what you can genuinely sustain — ₹5,000/month you'll never miss beats ₹15,000/month you'll cancel after four months.
- Expected return (r)
The annualised return you expect. For Indian equity mutual funds, 10-12% is a reasonable long-term assumption over 15+ years. For debt funds, 6-8%. For hybrid, 8-10%. Do NOT use last year's return — it's rarely predictive.
- Duration (n)
How many years you'll keep investing. This is the most powerful variable — compounding rewards time exponentially. 5 extra years often adds more than doubling the monthly amount.
Worked example: ₹10,000/month SIP for 25 years at 12%
Monthly SIP: ₹10,000 · Expected return: 12% CAGR · Duration: 25 years (300 months). Monthly rate i = 12%/12 = 1%.
Formula: FV = P × [((1+i)^n − 1) / i] × (1+i) = 10,000 × [((1.01)^300 − 1) / 0.01] × 1.01
(1.01)^300 ≈ 19.79. So FV ≈ 10,000 × (18.79 / 0.01) × 1.01 ≈ ₹1.9 crore.
Total invested: ₹30 lakh over 25 years. Gains from compounding: ~₹1.6 crore. The compounding does more than 5× the work of your contributions.
How to read your projection like an adult
Every investment calculator has one built-in lie: the return rate is an assumption, not a promise. If you use 12% for Indian equity mutual funds, that's a rough long-term average — not what your specific SIP will do next year. Markets are lumpy. The projection is a compass, not a GPS.
Run three scenarios: pessimistic (say 8%), realistic (10-11%), and optimistic (13%). If the pessimistic case still gets you close to your goal, you have a robust plan. If only the optimistic case works, you're one bad market cycle away from disappointment — increase your contribution, extend your timeline, or lower the goal.
Also, watch inflation. ₹1 crore in 2046 will buy roughly what ₹30 lakh buys today (at ~6% inflation). The number that looks huge on a projection is smaller in real purchasing power.
Don't stop contributing when the market falls. That's mathematically the worst time to stop. The whole point of a SIP is that you buy more units when prices are low.
Common mistakes
- ✗Stopping SIPs during market crashes. That's exactly when your ₹10,000 buys the most units.
- ✗Chasing 'top-performing' funds every 2-3 years. Fund-hopping usually costs more than it earns.
- ✗Investing without a goal or timeline. Random SIPs get redeemed randomly.
- ✗Setting SIP amount and never raising it, even after salary hikes.
- ✗Assuming your 'small' SIP won't matter. ₹2,000/month for 30 years at 12% is ~₹70 lakh.
Frequently asked questions
What's a realistic return for Indian equity SIPs?+
For 15+ year horizons, 10-12% CAGR is reasonable. Some 10-year windows deliver 15%, others 7%. Plan with 10%, hope for 12%.
Can I stop a SIP anytime?+
Yes. Mutual fund SIPs have no lock-in (except ELSS, which locks each installment for 3 years). Pause anytime through your broker or the AMC website.
SIP or lumpsum — which is better?+
For most retail investors with monthly income, SIP wins because it removes timing decisions. Lumpsums beat SIP mathematically if you invest at a market low — but very few can time that consistently.
How much tax do I pay on SIP gains?+
For equity funds, LTCG above ₹1 lakh/year is taxed at 10%. For debt funds (post April 2023), gains are taxed at your slab rate regardless of holding period.
Should I do multiple SIPs across many funds?+
For most people, 3-4 funds max: one large-cap index (Nifty 50), one mid/small-cap, one flexi-cap, optionally one international. More funds = duplicated holdings, not better diversification.
Reminder: this calculator is a learning tool, not personalised advice. For decisions involving your actual money, talk to a SEBI-registered adviser about your specific situation.