SIP Calculator
About the SIP Calculator
A SIP, or Systematic Investment Plan, is a way of investing a fixed amount into a mutual fund at a regular interval — usually every month. Instead of timing the market with one large investment, you spread your contributions over time, which averages your purchase cost across market ups and downs.
This calculator shows the future value of those monthly contributions at an expected annual return, compounded monthly. The real return on a market-linked fund is not fixed, so treat the figure as a projection based on the rate you enter, not a guarantee.
Frequently asked questions
How is the SIP maturity value calculated?
It uses the future-value-of-a-series formula: FV = P × ([(1 + i)ⁿ − 1] ÷ i) × (1 + i), where P is your monthly amount, i is the annual rate divided by 12, and n is the number of months. Each instalment compounds for the time it stays invested.
Is the return shown by a SIP calculator guaranteed?
No. SIPs into equity or hybrid mutual funds are market-linked, so the real return varies year to year. The calculator assumes the steady annual rate you enter, which is useful for planning but is not a promise of returns.
What expected return should I assume?
There's no single right number — it depends on the fund type and the market. Equity funds have historically returned roughly 10–12% over long periods and debt funds less, but past performance doesn't guarantee future returns, so modelling a conservative and an optimistic rate is wiser than trusting one figure.
Can I increase my SIP amount later?
Yes. Many investors raise their monthly amount each year as income grows — a "step-up" or "top-up" SIP. Our Step-Up SIP calculator models exactly that, where the instalment increases by a set percentage every year.
How are SIP returns taxed?
For equity mutual funds, as of 2026, long-term gains (units held over a year) are taxed at 12.5% above a ₹1.25 lakh yearly exemption, and short-term gains at 20%. Debt-fund gains are taxed at your income-tax slab. Tax rules change, so confirm the current rates before filing.
SIP or lumpsum — which grows more?
Neither is universally better. A lumpsum puts all your money to work immediately, which helps in a rising market; a SIP spreads risk by averaging your cost across market levels. Compare both with our Lumpsum calculator using the same rate and horizon.