What is a SIP?
A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund at regular intervals, usually every month. Instead of trying to time the market with a lump sum, you buy units steadily — more units when prices are low and fewer when they are high — and let compounding work over the years.
How the SIP Calculator Works
The calculator assumes each instalment is invested at the start of the month and grows at a constant monthly rate:
- P — monthly investment
- i — expected annual return ÷ 12 ÷ 100
- n — number of monthly instalments
Worked example
₹10,000 a month at an expected 12% for 10 years: i = 0.01 and n = 120. You invest ₹12,00,000 and the estimated value is ₹23,23,391 — returns of ₹11,23,391.
Time Matters More Than the Amount
Keep the same ₹10,000 SIP going for 20 years instead of 10 and the estimated value rises to about ₹99,91,479 on ₹24,00,000 invested. Doubling the time more than quadruples the result, because returns in later years are earned on a much larger balance.
Step-Up SIP
Most people earn more over time, so increasing the SIP every year is a powerful habit. A ₹10,000 SIP raised by 10% each year for 10 years invests about ₹19,12,491 and could grow to about ₹33,74,326 at 12% — over ₹10 lakh more than a flat SIP.
Things to Keep in Mind
- Mutual fund returns are market-linked and not guaranteed; real returns vary from year to year.
- Expense ratios, exit loads and capital gains tax reduce what you actually receive.
- Use a conservative return and review your plan at least once a year.
Frequently Asked Questions
How is the SIP maturity value calculated?
FV = P × ((1 + i)^n − 1) ÷ i × (1 + i), where P is the monthly amount, i is the monthly return (annual return ÷ 12 ÷ 100) and n is the number of months. ₹10,000 a month at 12% for 10 years grows to about ₹23,23,391 on ₹12,00,000 invested.
What return should I assume?
Use a conservative figure. Long-term equity fund returns have historically varied widely, and debt funds return less. Try a few rates — for example 8%, 10% and 12% — to see a range rather than relying on a single number.
What is a step-up SIP?
A step-up (or top-up) SIP increases the monthly amount every year, usually in line with your salary. Raising a ₹10,000 SIP by 10% each year for 10 years invests about ₹19,12,491 and could grow to about ₹33,74,326 at 12%.
Are SIP returns guaranteed?
No. Mutual funds are market-linked, so the value can go down as well as up. The calculator shows what a constant rate would produce, which is useful for planning but is not a promise of returns.
Does the calculator store my numbers?
No. All calculations run inside your browser. The amounts you enter are not sent to our server or saved anywhere.