SIP Calculator

Example 1

You start a monthly SIP of 10,000 in an equity mutual fund.

You expect an annual return of 12% and plan to continue the SIP for 15 years.

You want to know the maturity amount, total invested, and total returns.

Solution

P = 10,000, annual return = 12%, monthly rate r = 12% / 12 / 100 = 0.01, n = 15 years × 12 = 180 months

FV = 10,000 × [(1 + 0.01)^180 - 1] / 0.01 × (1 + 0.01)

FV = 10,000 × [5.9958 - 1] / 0.01 × 1.01

FV = 10,000 × 499.58 × 1.01 = 50,45,758

Total invested = 10,000 × 180 = 18,00,000

Total returns = 50,45,758 - 18,00,000 = 32,45,758

Answer

After 15 years, your 10,000 monthly SIP grows to approximately 50.46 lakhs, with total investment of 18 lakhs and total returns of 32.46 lakhs. The returns are more than 1.8 times your total invested amount.

Example 2

You start a monthly SIP of 20,000 in an equity fund with a 10% annual step-up.

You expect 12% annual returns and plan to continue for 20 years.

You want to compare the maturity amount with and without the step-up.

Solution

Without step-up: P = 20,000, r = 0.01, n = 240 months

FV_no_stepup = 20,000 × [(1.01)^240 - 1] / 0.01 × 1.01 = 1,99,00,000 (approx 1.99 crores)

With 10% step-up: Year 1 SIP = 20,000, Year 2 SIP = 22,000, Year 3 SIP = 24,200...

The step-up formula calculates each year's contributions separately and sums them.

FV_stepup = 1,99,00,000 (no step-up) vs over 3.5 crores (with step-up)

Answer

The step-up SIP produces significantly more than the fixed SIP because the increasing amounts benefit from compounding over the remaining tenure. The 20-year step-up SIP can generate over 75% more wealth than a fixed SIP with the same initial investment.

Example 3

An investor wants to accumulate 2 crores over 25 years through a monthly SIP. Assuming 12% annual returns, what monthly investment is needed?

Solution

Using the SIP future value formula rearranged to solve for P: P = FV × r / [(1+r)^n - 1] × 1/(1+r).

Monthly rate r = 0.12/12 = 0.01, n = 25 × 12 = 300 months, FV = 2,00,00,000.

P = 2,00,00,000 × 0.01 / [(1.01)^300 - 1] × 1/1.01.

P = 2,00,000 / (18.79 - 1) × 0.99 = 2,00,000 / 17.79 × 0.99 ≈ 11,130.

Answer

A monthly SIP of approximately 11,200 is needed to reach 2 crores in 25 years at 12% returns. Starting earlier reduces this amount significantly.

Example 4

Compare the maturity amount of a 15,000 monthly SIP over 15 years at 10% annual returns versus 14% annual returns.

Solution

At 10%: r = 0.10/12 = 0.00833, n = 180 months.

At 14%: r = 0.14/12 = 0.01167, n = 180 months.

Answer

At 10% returns: approximately 62.3 lakhs. At 14% returns: approximately 99 lakhs. A 4% difference in annual returns nearly doubles the corpus over 15 years, demonstrating the critical importance of fund selection and expected return assumptions.

By Vikram Mehta

Reviewed by Dr. Mian Sajawal Shah

Published: 2026-06-15

Updated: 2026-07-18

References

[1]Securities and Exchange Board of India (SEBI), Systematic Investment Plan (SIP) Definition, 2025. https://www.sebi.gov.in
[2]Association of Mutual Funds in India (AMFI), Historical Returns on Equity Mutual Funds in India, 2025. https://www.amfiindia.com
[3]Investor.gov, U.S. Securities and Exchange Commission, Power of Compounding and SIP Investing, 2025. https://www.investor.gov/introduction-investing/investing-basics/how-wealth-grows

Glossary

SIP – Systematic Investment Plan – a method of investing a fixed amount in mutual funds at regular intervals, typically monthly, allowing investors to build wealth gradually through disciplined investing.
NAV – Net Asset Value – the per-unit market price of a mutual fund scheme, calculated daily based on the market value of the fund's underlying assets minus liabilities.
AUM – Assets Under Management – the total market value of all investments managed by a mutual fund scheme or asset management company, indicating the size and scale of the fund.
XIRR – Extended Internal Rate of Return – a method of calculating the annualized return on investments where multiple cash flows occur at different times, providing the most accurate return measurement for SIP investments.
CAGR – Compound Annual Growth Rate – the year-over-year growth rate of an investment over a specified period, assuming the profits are reinvested at the end of each year.
Rupee-Cost Averaging – An investment strategy where a fixed amount is invested at regular intervals regardless of market conditions, resulting in lower average cost per unit over time through buying more units when prices are low and fewer when prices are high.
Step-Up SIP – A type of SIP where the investment amount increases by a fixed percentage each year, allowing investors to align their investment growth with expected income increases.
Expense Ratio – The annual fee charged by a mutual fund to manage your investment, expressed as a percentage of assets under management, covering fund management, administrative, and operational costs.
Exit Load – A fee charged by a mutual fund when units are redeemed before a specified holding period, typically 0.5% to 1% of the redemption amount if withdrawn within 3 to 12 months.
Portfolio – A collection of different investments owned by an individual or institution, including stocks, bonds, mutual funds, and other assets, diversified to manage risk and achieve financial goals.

How to Use?

1
Enter your monthly SIP amount
Type the amount you plan to invest every month through your SIP. This is the fixed amount that will be deducted from your account and invested in your chosen mutual fund scheme.
2
Set your expected annual return rate
Enter the expected annual return based on the type of fund you are investing in. For equity mutual funds, historical returns have averaged 10% to 15% over long periods. For debt funds, 6% to 9% is typical. Use conservative estimates for realistic projections.
3
Choose your investment tenure
Select how long you plan to continue the SIP in years or months. Longer tenures dramatically increase the power of compounding. A minimum of 5 to 7 years is recommended for equity-oriented SIPs to ride out market volatility.
4
Select SIP investment timing
Choose whether your SIP is invested at the beginning or end of each month. Beginning-of-month investments get one extra cycle of compounding per installment, which results in slightly higher maturity amounts over long periods.
5
Toggle Step-Up SIP Mode for advanced planning (optional)
Enable Step-Up SIP Mode to add an annual step-up percentage, which increases your SIP amount by a fixed percentage each year. This aligns with salary growth and accelerates wealth creation. You can also adjust for inflation to see real purchasing power.
6
Review your results and explore scenarios
The calculator shows your maturity amount, total invested, total returns, XIRR, and a yearly growth schedule. Adjust any input to compare different investment scenarios and find the SIP plan that best matches your financial goals.

Frequently Asked Questions

A Systematic Investment Plan (SIP) is a method of investing a fixed amount in mutual funds at regular intervals, typically monthly. It allows you to invest gradually rather than making a one-time lump sum investment. SIPs work through rupee-cost averaging, where you buy more units when prices are low and fewer units when prices are high, reducing the average cost per unit over time. Most mutual fund houses in India and many international platforms offer SIP options with amounts as low as $10 or INR 500 per month.

An SIP calculator uses the future value of an annuity formula to project the maturity amount of your periodic investments. It takes your monthly investment amount, expected annual return rate, investment tenure, and the timing of contributions (beginning or end of month). The calculator compounds each monthly installment at the monthly rate of return for the remaining duration of the investment. The sum of all these compounded values gives the estimated maturity amount. The formula assumes a constant rate of return, which in reality fluctuates with market conditions, so the result is an estimate rather than a guaranteed outcome.

The appropriate return rate depends on the type of mutual fund you choose. For large-cap equity funds, historical long-term returns in India have averaged 10% to 14% annually. For mid-cap and small-cap funds, returns can range from 12% to 18% but come with higher volatility. For debt or bond funds, 6% to 9% is realistic. For hybrid funds balancing equity and debt, 8% to 11% is typical. International markets like the S&P 500 have averaged approximately 10% before inflation. For conservative planning, use 10% for equity SIPs and adjust downward if you prefer a more cautious estimate.

The investment tenure is the most critical factor in SIP returns because it determines how many months your money compounds. A 10,000 monthly SIP at 12% annual returns grows to approximately 23.2 lakhs after 10 years, 99.9 lakhs after 20 years, and 3.5 crores after 30 years. The growth accelerates over time due to compounding: the first 10 years build the base, the second 10 years double it, and the third 10 years multiply it exponentially. This nonlinear acceleration is why financial advisors consistently recommend starting SIPs early and staying invested for the long term.

A step-up SIP, also called a top-up SIP, allows you to increase your investment amount by a fixed percentage every year. For example, a 10,000 monthly SIP with a 10% annual step-up increases to 11,000 in year two, 12,100 in year three, and so on. This aligns your investment growth with your expected income growth from career progression and salary increases. A step-up SIP significantly accelerates wealth creation: a 10,000 monthly SIP at 12% for 20 years with no step-up yields approximately 99.9 lakhs. With a 10% annual step-up, the same SIP grows to over 1.8 crores, demonstrating the powerful combination of step-up and compounding.

XIRR stands for Extended Internal Rate of Return and is the most accurate way to measure returns on SIP investments where cash flows happen at regular intervals. Unlike simple CAGR, which assumes a single investment and a single maturity, XIRR accounts for each monthly investment having a different holding period. In this calculator, the XIRR displayed is the Effective Annual Rate (EAR) derived from the monthly compounding rate, which represents the annualized return of your SIP. For example, a 12% annual return compounded monthly gives an XIRR of approximately 12.68%, reflecting the compounding effect within the year.

Rupee-cost averaging is the practice of investing a fixed amount at regular intervals regardless of market conditions. When the market is down, your fixed investment buys more units. When the market is up, it buys fewer units. Over time, this averages out your purchase cost below the average market price. During a market correction, a 10,000 monthly SIP in a fund with a NAV of 100 buys 100 units, but the same amount in a market dip with a NAV of 80 buys 125 units. When the market recovers, those extra units significantly boost your returns. This automatic discipline removes the need to time the market, which even professional investors struggle to do consistently.

SIP and lump sum investments serve different purposes and the better choice depends on market conditions and your financial situation. SIP is generally better for regular income earners who want to build wealth gradually without worrying about market timing. It reduces the risk of investing a large amount just before a market downturn. Lump sum investing is more suitable when you have a large amount of cash available and the market is reasonably valued. Historically, lump sum investing has outperformed SIP in rising markets because the full amount is deployed from day one. However, SIP provides emotional comfort and financial discipline that helps most investors stay invested during volatile periods.

Yes, this SIP calculator works for any currency and any market. Select your preferred currency from the dropdown and enter the expected return rate appropriate for your market. For US investors using S&P 500 index funds, a historical average return of 8% to 10% before inflation is reasonable. For UK investors, the FTSE 100 has averaged 6% to 8%. For emerging markets, returns may be higher but with greater volatility. The mathematical principle of SIP works the same across all markets: regular investing combined with compounding builds wealth over time regardless of the currency or geography.

Stopping a SIP mid-way does not incur any penalty in most mutual fund schemes, but it disrupts your compounding trajectory. When you stop the SIP, the units you have already purchased remain invested and continue to grow or decline with the market. However, you lose the benefit of future compounding on the amounts you would have invested. If you stop a 10,000 monthly SIP after 3 years when you planned for 10 years, the accumulated amount continues to grow but only from the base you have built. The lost seven years of contributions mean significantly lower final wealth. Most financial experts recommend pausing rather than stopping a SIP during financial hardship and resuming as soon as possible.

SIP investments in mutual funds come with several costs that affect your net returns. The expense ratio is the annual fee charged by the fund house for managing your money, typically ranging from 0.2% for index funds to 1.5% for actively managed funds. Exit load is a fee charged if you redeem your investment before a specified period, usually 0.5% to 1% if redeemed within 3 to 12 months. Some platforms also charge a transaction fee for each SIP installment. These costs reduce your effective return, so when using this calculator with conservative estimates, consider using a rate that is 1% to 2% lower than the fund's historical return to account for expenses.

Inflation reduces the purchasing power of your future maturity amount. If your SIP grows to 1 crore after 20 years at 12% returns, but inflation averages 6% during that period, the real (inflation-adjusted) value of that 1 crore is only approximately 31 lakhs in today's purchasing power. This calculator includes an Advanced Mode where you can enter an expected inflation rate to see the real maturity amount. For long-term financial planning, always consider real returns rather than nominal returns. Historically, equity SIPs have delivered real returns of 6% to 8% after adjusting for inflation, making them effective long-term wealth creation tools.

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References

[1]Securities and Exchange Board of India (SEBI), Systematic Investment Plan (SIP) Definition, 2025. https://www.sebi.gov.in

[2]Association of Mutual Funds in India (AMFI), Historical Returns on Equity Mutual Funds in India, 2025. https://www.amfiindia.com

[3]Investor.gov, U.S. Securities and Exchange Commission, Power of Compounding and SIP Investing, 2025. https://www.investor.gov/introduction-investing/investing-basics/how-wealth-grows

Glossary

SIP – Systematic Investment Plan – a method of investing a fixed amount in mutual funds at regular intervals, typically monthly, allowing investors to build wealth gradually through disciplined investing.

NAV – Net Asset Value – the per-unit market price of a mutual fund scheme, calculated daily based on the market value of the fund's underlying assets minus liabilities.

AUM – Assets Under Management – the total market value of all investments managed by a mutual fund scheme or asset management company, indicating the size and scale of the fund.

XIRR – Extended Internal Rate of Return – a method of calculating the annualized return on investments where multiple cash flows occur at different times, providing the most accurate return measurement for SIP investments.

CAGR – Compound Annual Growth Rate – the year-over-year growth rate of an investment over a specified period, assuming the profits are reinvested at the end of each year.

Rupee-Cost Averaging – An investment strategy where a fixed amount is invested at regular intervals regardless of market conditions, resulting in lower average cost per unit over time through buying more units when prices are low and fewer when prices are high.

Step-Up SIP – A type of SIP where the investment amount increases by a fixed percentage each year, allowing investors to align their investment growth with expected income increases.

Expense Ratio – The annual fee charged by a mutual fund to manage your investment, expressed as a percentage of assets under management, covering fund management, administrative, and operational costs.

Exit Load – A fee charged by a mutual fund when units are redeemed before a specified holding period, typically 0.5% to 1% of the redemption amount if withdrawn within 3 to 12 months.

Portfolio – A collection of different investments owned by an individual or institution, including stocks, bonds, mutual funds, and other assets, diversified to manage risk and achieve financial goals.

How to Use?

Enter your monthly SIP amount

Type the amount you plan to invest every month through your SIP. This is the fixed amount that will be deducted from your account and invested in your chosen mutual fund scheme.

Set your expected annual return rate

Enter the expected annual return based on the type of fund you are investing in. For equity mutual funds, historical returns have averaged 10% to 15% over long periods. For debt funds, 6% to 9% is typical. Use conservative estimates for realistic projections.

Choose your investment tenure

Select how long you plan to continue the SIP in years or months. Longer tenures dramatically increase the power of compounding. A minimum of 5 to 7 years is recommended for equity-oriented SIPs to ride out market volatility.

Select SIP investment timing

Choose whether your SIP is invested at the beginning or end of each month. Beginning-of-month investments get one extra cycle of compounding per installment, which results in slightly higher maturity amounts over long periods.

Toggle Step-Up SIP Mode for advanced planning (optional)

Enable Step-Up SIP Mode to add an annual step-up percentage, which increases your SIP amount by a fixed percentage each year. This aligns with salary growth and accelerates wealth creation. You can also adjust for inflation to see real purchasing power.

Review your results and explore scenarios

The calculator shows your maturity amount, total invested, total returns, XIRR, and a yearly growth schedule. Adjust any input to compare different investment scenarios and find the SIP plan that best matches your financial goals.