About the SIP Calculator
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month instead of committing a large sum at one time. This SIP calculator estimates what those instalments could grow to. It shows the total amount you invest, the estimated returns and the maturity value for the monthly amount, period and rate of return you choose.
It is used by salaried investors planning long-term goals, by business owners who want to build personal wealth outside the business, and by parents saving for education or a wedding. The optional annual step-up reflects a common habit: raising the SIP a little every year as income grows. Over long periods that small increase can change the final corpus substantially.
Three inputs drive the result: the monthly amount, the number of years and the assumed rate of return. Time matters most, because returns are earned on earlier returns. The rate you enter is an assumption, not a promise. Equity funds fluctuate, and actual returns can be higher or lower than any illustration. Fund expenses, exit loads and tax on gains are not deducted here.
How to use it
- 1Enter the amount you plan to invest every month.
- 2Enter the annual return you expect and the number of years you will stay invested.
- 3Optionally add an annual step-up percentage if you plan to raise the SIP every year.
- 4Read the invested amount, estimated returns and maturity value; the bar shows how much of the corpus comes from growth.
How this is calculated
FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i) P = monthly SIP, i = expected annual return ÷ 12 ÷ 100, n = number of monthly instalments. Each instalment is assumed to be invested at the start of the month and compounded monthly. With a step-up, P is raised by the step-up percentage after every 12 instalments and the corpus is built up month by month.
Frequently asked questions
How accurate is a SIP calculator?
It is arithmetically exact for the rate you enter, but nobody knows future market returns. Mutual fund NAVs move every day, so your real return will differ from a constant-rate illustration. Use the result as a planning estimate and revisit it periodically rather than treating it as a guaranteed maturity value.
What return should I assume for a SIP?
There is no guaranteed figure. Many investors test a conservative, a moderate and an optimistic rate to see a range of outcomes. Equity funds have higher long-term potential with sharper ups and downs, while debt funds are steadier but usually lower. Avoid planning an important goal on the most optimistic number.
What is a step-up SIP?
A step-up, or top-up, SIP increases your monthly instalment by a fixed percentage every year, for example 10%. Because later instalments are larger, the final corpus is higher than a flat SIP with the same starting amount. Enter the percentage in the step-up field to see the difference it makes.
Does the calculator deduct tax or fund charges?
No. The result is before tax, exit load and other costs. Gains on mutual fund units are taxed as capital gains, and the rates, holding periods and exemption limits are revised in Union Budgets. Check the current rules or ask a tax adviser before estimating your post-tax amount.
SIP or lump sum — which is better?
A SIP suits regular income and spreads your purchases across market levels, which reduces the risk of investing everything at a peak. A lump sum puts all the money to work from the first day. Many people use both: SIPs from monthly income, and lump sums when a bonus or surplus arrives.