SIP Calculator

Calculate SIP returns, step-up SIP with annual increments, or find the monthly SIP needed to reach your financial goal.

Monthly Investment ₹5,000

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₹500₹1 L

Expected Annual Return 12%

% p.a.

1%30%

Investment Period 10 Years

Yrs

1 Year40 Years

Maturity Value

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Total Invested

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Total Gains

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Invested

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Returns

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Maturity

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Year	Total Invested	Returns	Corpus

📈 What is a SIP?

A Systematic Investment Plan (SIP) is a disciplined approach to investing in mutual funds where you invest a fixed amount at regular intervals — typically monthly — rather than making a one-time lump sum investment. Think of it as a recurring deposit into a mutual fund instead of a bank account, with the potential for much higher long-term returns.

When you start a SIP, your money buys units of a mutual fund at the current Net Asset Value (NAV) on your chosen date each month. When the market is down, your fixed amount buys more units. When the market is up, it buys fewer units. Over time, this averaging effect — called rupee cost averaging — reduces the risk of investing at a market peak and smooths out volatility.

The real magic of SIP investing is compound growth. Your returns generate returns in subsequent months, creating an accelerating snowball effect over years and decades. A modest monthly SIP of ₹5,000 at 12% annual returns for 20 years grows into approximately ₹49.96 lakh — compared to a total investment of just ₹12 lakh. The additional ₹37.96 lakh comes entirely from compounding.

This calculator supports three modes: Regular SIP for standard projection, Step-Up SIP (also called Top-Up SIP) for modelling annual increments aligned with salary hikes, and Reverse SIP for goal-based planning — answering "how much SIP do I need to reach ₹1 crore in 15 years?"

SIPs are suitable for a wide range of investors. They are ideal for salaried individuals who have a regular monthly income, people who want to build wealth gradually without monitoring markets daily, and investors who want to maintain financial discipline. SIPs can be paused, stopped, or increased at any time, making them extremely flexible compared to traditional fixed-income instruments.

Important caveat: unlike fixed deposits or PPF, SIP returns are not guaranteed because mutual fund performance depends on market conditions. The return rate you enter in this calculator is an assumed annual return for illustration purposes only. Historical equity mutual fund returns in India have averaged between 12% and 15% over 15–20 year periods, but past performance does not guarantee future returns.

📐 SIP Formula

M = P × [((1+r)ⁿ − 1) ÷ r] × (1+r)

M = Maturity value (total corpus at end of investment period)

P = Monthly SIP investment amount

r = Monthly interest rate = Annual rate ÷ 12 ÷ 100

n = Total number of months = Years × 12

This is the future value of an annuity-due formula (payments at the beginning of each period). For Step-Up SIP, the monthly amount P increases by the step-up percentage each year, so each year's 12 instalments are compounded for the remaining period. There is no single closed-form formula; the calculator iterates month-by-month. For Reverse SIP, the formula is rearranged: P = M ÷ [((1+r)ⁿ − 1) / r × (1+r)], solving for the required monthly amount given a target maturity M.

📖 How to Use This Calculator

Regular SIP — Step-by-Step

Select Regular SIP tab (default). Enter the fixed monthly amount you plan to invest.

Enter the expected annual return rate. Use 12% as a moderate estimate for equity mutual funds, or 7–8% for balanced funds.

Set the investment period in years and click Calculate. Expand the year-by-year table to see your corpus at each milestone.

Step-Up SIP — Modelling Annual Increments

Select Step-Up SIP tab. Enter the starting monthly SIP amount (what you can invest today).

Set the annual step-up %. A 10% annual increment is the most common recommendation, matching typical salary hikes.

Enter return rate and period, then click Calculate to see the dramatically higher corpus vs. a flat SIP.

Reverse SIP — Goal-Based Planning

Select Reverse SIP tab. Enter your target corpus (e.g. 10000000 for ₹1 crore).

Enter the expected return rate and tenure. The calculator tells you the exact monthly SIP needed to hit your goal.

💡 Example Calculations

Example 1 — Regular SIP for Retirement

₹10,000/month at 12% for 25 years

r = 12 ÷ 12 ÷ 100 = 0.01 (monthly rate) · n = 25 × 12 = 300 months

Total invested = 10,000 × 300 = ₹30,00,000

M = 10,000 × [((1.01)³⁰⁰ − 1) ÷ 0.01] × 1.01

Maturity Value ≈ ₹1,89,76,352 · Returns ≈ ₹1,59,76,352 (5.3× investment)

Try this example →

Example 2 — Step-Up SIP Advantage

₹5,000/month, 10% annual step-up, 12% return, 20 years

Year 1: ₹5,000/month → Year 2: ₹5,500/month → Year 3: ₹6,050/month … Year 20: ₹30,647/month

Total invested over 20 years: ₹34,36,500 (vs ₹12,00,000 for flat SIP)

Maturity Value ≈ ₹1,08,00,000 · Flat SIP of same ₹5,000 gives only ₹49.96 lakh — Step-Up gives 2.2× more corpus

Try this example →

Example 3 — Reverse SIP: ₹1 Crore Goal

Target ₹1 crore at 12% return in 15 years

n = 15 × 12 = 180 months · r = 0.01

Annuity factor = ((1.01)¹⁸⁰ − 1) ÷ 0.01 × 1.01 = 504.58

Required monthly SIP = 1,00,00,000 ÷ 504.58 = ₹19,819/month

To reach ₹1 crore in 15 years at 12%: invest ₹19,819/month. In 20 years the same goal needs only ₹10,009/month — 7 extra years nearly halve the required monthly amount.

Try this example →

📋 SIP Quick Reference Table

Estimated maturity values at 12% annual return. Use as a quick guide for goal planning — use the calculator above for exact numbers with your preferred rate.

Monthly SIP	10 Years	15 Years	20 Years	25 Years
₹1,000	₹2.32 L	₹5.02 L	₹9.99 L	₹18.98 L
₹3,000	₹6.96 L	₹15.07 L	₹29.97 L	₹56.93 L
₹5,000	₹11.60 L	₹25.11 L	₹49.96 L	₹94.88 L
₹10,000	₹23.21 L	₹50.23 L	₹99.91 L	₹1.90 Cr
₹20,000	₹46.41 L	₹1.00 Cr	₹1.99 Cr	₹3.80 Cr
₹50,000	₹1.16 Cr	₹2.51 Cr	₹4.99 Cr	₹9.49 Cr

Values are rounded for readability. Actual returns vary with market performance. For goal-based reverse calculations, use the Reverse SIP tab above.

🎯 SIP for Common Financial Goals

Below are indicative monthly SIP amounts at 12% annual return for popular goals. Use these as a starting benchmark and adjust with the calculator for your specific timeline and risk appetite.

Child's Higher Education (in 15 years)

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Target: ₹25–50 lakh → Required SIP: ₹4,966 – ₹9,933/month at 12% for 15 years.

Retirement Corpus (in 25 years)

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Target: ₹2–5 crore → Required SIP: ₹10,544 – ₹26,360/month at 12% for 25 years.

Home Down Payment (in 5 years)

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Target: ₹20 lakh → Required SIP: ₹24,611/month at 12% for 5 years. Consider a balanced or debt fund for shorter horizons to reduce risk.

Emergency Fund / Liquid Reserve (in 3 years)

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Target: ₹5 lakh → Required SIP: ₹12,352/month at 7% (liquid/debt fund) for 3 years. Use a liquid fund SIP rather than equity for near-term goals.

❓ Frequently Asked Questions

What is a SIP and how does it work?+

A SIP is a method of investing a fixed amount into a mutual fund at regular intervals, usually monthly. On your chosen date each month, the fixed amount is automatically debited from your bank account and invested at the current NAV. You accumulate units over time. When you redeem, you get the current value of all accumulated units. The key benefits are disciplined investing, rupee cost averaging, and long-term compounding.

What is Step-Up SIP and how is it different from regular SIP?+

A Step-Up SIP (also called Top-Up SIP) increases your monthly investment by a fixed percentage each year. For example, a ₹5,000/month SIP with 10% annual step-up becomes ₹5,500 in Year 2, ₹6,050 in Year 3, and so on. This aligns SIP growth with salary increments. The impact is dramatic: at 12% for 20 years, a regular ₹5,000/month SIP yields ~₹49.96 lakh, while the same SIP with 10% annual step-up yields approximately ₹1.08 crore — more than double. Use the Step-Up SIP tab above to calculate your scenario.

How much SIP do I need for ₹1 crore?+

At 12% annual return: ₹1 crore in 10 years needs ~₹43,500/month; in 15 years ~₹20,000/month; in 20 years ~₹10,100/month. The required amount drops dramatically with more time — this is the power of compounding. Use the Reverse SIP tab on this calculator to get the exact monthly SIP for any target, return rate, and tenure.

Is SIP taxed in India? What is LTCG on mutual funds?+

Yes. SIP gains in equity mutual funds are taxed as capital gains. From FY2025-26, Long-Term Capital Gains (LTCG) — gains on units held more than 1 year — are taxed at 12.5% on gains exceeding ₹1.25 lakh per financial year (revised upward from the earlier 10%/₹1 lakh rule). Short-Term Capital Gains (STCG) on units redeemed within 1 year are taxed at 20%. ELSS fund SIPs also qualify for ₹1.5 lakh Section 80C deduction. This calculator shows an estimated LTCG tax in the results after you calculate.

What happens if I miss a SIP payment?+

Missing a SIP instalment is not a disaster. Your mutual fund account remains open, accumulated units are unaffected, and the AMC simply does not debit that month. There is no penalty. After 2–3 consecutive missed payments, many AMCs pause or cancel the SIP mandate, but you can restart it. The impact is only a proportional reduction in your total investment and final corpus for that month’s missed contribution.

Is SIP return guaranteed?+

No. SIP returns are market-linked and not guaranteed. The return rate you enter in this calculator is an assumed projection rate. Equity mutual funds have historically delivered 12–15% annual returns over 15+ year periods in India, but individual fund performance varies, and markets can underperform for extended periods. Unlike FDs or PPF, there is principal risk in equity-oriented SIPs.

SIP vs PPF — which is better?+

Both serve different purposes. PPF offers guaranteed, tax-free returns (~7.1% p.a. current rate) with full capital safety and Section 80C benefit — ideal for conservative or debt allocation. Equity SIPs have historically returned 12–15% over long periods with market risk. Many financial planners recommend a 70:30 or 60:40 equity:debt split depending on age, with SIP covering equity and PPF covering debt. Use our PPF Calculator to compare the final corpus for your investment amount and timeline.

Can I increase my SIP amount?+

Yes, in two ways. You can manually increase your SIP at any time by registering a new SIP for an additional amount (the original SIP continues). Or, most AMCs and platforms offer a built-in Step-Up SIP facility that auto-increments the debit by a fixed amount or percentage each year. Both approaches have the same mathematical outcome. Use the Step-Up SIP tab above to see how much more wealth a 10% annual increment creates over your investment horizon.

If I invest ₹5,000/month via SIP at 12% for 10 years, how much will I get?+

Investing ₹5,000/month at 12% annual return for 10 years gives a maturity value of approximately ₹11.6 lakh. Total invested = ₹6 lakh. Total gains ≈ ₹5.6 lakh. Return percentage ≈ 93%. The same ₹5,000/month at 12% for 20 years grows to approximately ₹49.96 lakh — a gain of ₹37.96 lakh on ₹12 lakh total investment. Time is the most powerful variable in SIP investing.

What is rupee cost averaging in a SIP?+

Rupee cost averaging means that because you invest a fixed amount every month regardless of the market level, you automatically buy more units when NAV is low and fewer units when NAV is high. Over time this reduces your average cost per unit compared to investing a lump sum at a single point. For example, if NAV is ₹10 one month you get 500 units for ₹5,000, and if NAV rises to ₹20 the next month you get 250 units for the same ₹5,000. Your average cost is ₹13.33 per unit, lower than the simple average NAV of ₹15. This smoothing effect is one of the core advantages of SIP over lump-sum investing in volatile markets.

🔗 Related Calculators

What is a SIP and how does it work?

A SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly - typically monthly - into a mutual fund or index fund. Over time, you benefit from cost averaging (buying more units when prices are low) and the power of compounding returns.

What is Step-Up SIP and how is it different from regular SIP?

A Step-Up SIP (also called Top-Up SIP) is a variant where you increase your monthly investment by a fixed percentage every year. For example, you start with ₹5,000/month and increase it by 10% each year: Year 2 becomes ₹5,500, Year 3 becomes ₹6,050, and so on. This aligns with salary hikes and dramatically boosts your final corpus. A ₹5,000/month regular SIP at 12% for 20 years yields ~₹49.96 lakh; the same SIP with 10% annual step-up yields approximately ₹1.08 crore - more than double.

How much SIP do I need to accumulate ₹1 crore?

The required monthly SIP depends on the expected return and time horizon. At 12% annual return: to reach ₹1 crore in 10 years, you need approximately ₹43,500/month; in 15 years, approximately ₹17,400/month; in 20 years, approximately ₹8,500/month. Use the Reverse SIP tab on this calculator to get the exact number for your target and tenure.

Is SIP income taxed in India?

Yes. SIP gains in equity mutual funds are taxed as capital gains on each instalment separately. Gains on units held for more than 1 year are Long-Term Capital Gains (LTCG) taxed at 12.5% on gains exceeding ₹1.25 lakh per financial year (FY2025-26 rate, revised from the earlier 10%/₹1 lakh rule). Gains on units redeemed within 1 year are Short-Term Capital Gains (STCG) taxed at 20%. ELSS SIPs also qualify for ₹1.5 lakh Section 80C deduction.

What happens if I miss a SIP payment?

Missing a SIP instalment is not a disaster. Your mutual fund account remains open, accumulated units are unaffected, and the fund house will simply not debit that month. After 2-3 consecutive missed payments, the SIP mandate may be paused or cancelled by the AMC, but you can restart it. There is no penalty for missing a payment, though it reduces your total invested amount and final corpus proportionally.

Is SIP return guaranteed?

No. SIP returns are market-linked and depend on the fund's performance. The return rate you enter is an assumed annual return for projection purposes. Historical global equity fund returns have averaged 8-14% annually over long periods, but past performance does not guarantee future results.

SIP vs PPF - which is better?

Both serve different purposes. PPF offers guaranteed, tax-free returns (~7.1% p.a. in 2024) with full capital safety - ideal for the risk-averse or as a debt component. Equity SIPs have historically returned 12-15% over long periods with market risk. For pure wealth building over 15+ years, equity SIP has delivered significantly higher returns. Many advisors recommend a combination: SIP for growth, PPF for stability. See our PPF Calculator to compare numbers directly.

SIP vs lump sum - which is better?

In a consistently rising market, a lump sum invested at the start outperforms SIP because it compounds for the entire period. In volatile markets, SIP wins by averaging costs across cycles. For most salaried investors with regular income and limited lump sum capital, SIP is the more practical and psychologically sustainable approach. Use our Compound Interest Calculator to model a lump sum scenario and compare.

Can I increase my SIP amount?

Yes, in two ways. You can either manually increase your SIP amount at any time by submitting a new SIP registration for a higher amount (the old SIP continues alongside). Or, many AMCs and platforms offer a Step-Up SIP facility that auto-increases the debit by a fixed amount or percentage annually. Use the Step-Up SIP tab on this calculator to project the impact of annual increments on your corpus.

📌 Quick Tips

💡Start early - investing a fixed amount monthly from age 25 vs age 35 at 12% for 30 vs 20 years makes a massive difference.

💡SIP returns shown assume a constant rate. Actual mutual fund or index fund returns fluctuate year to year.

💡Use Step-Up SIP mode to model a 10% annual increment - it significantly boosts your final corpus without a large upfront commitment.

💡All calculations run instantly in your browser — no data is sent to any server.

💡Try the example values first to understand how each input affects the result.