SIP Calculator

Calculate your Systematic Investment Plan returns with annual step-up. Toggle inflation and LTCG tax to see the real value of your investments.

₹
%
Yrs
Invested Amount
Est. Returns
Total Value

₹23.23 L

Invested Amount

₹12.00 L

Est. Returns

₹11.23 L

Investment Growth Over Time

₹0₹6.4L₹12.8L₹19.2L₹25.6L1Y2Y3Y4Y5Y6Y7Y8Y9Y10Y
Total Value
Invested

How SIP Works

A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in mutual funds. The power of SIP lies in rupee cost averaging and the compounding effect over long periods.

SIP Formula

FV = P × [((1+r)n - 1) / r] × (1+r)

Where P = monthly investment, r = monthly rate of return, n = total number of months.

What Makes This Calculator Different

Most calculators show you nominal returns — the big shiny number. But that number doesn't account for:

  • Inflation — at 6% inflation, ₹1 crore in 20 years has the purchasing power of ~₹31 lakhs today
  • LTCG Tax — 12.5% + 4% cess on gains above ₹1.25 lakh (Budget 2024-25)
  • Step-up — most investors increase their SIP yearly. Not accounting for this underestimates your actual corpus

SIP vs Lumpsum: Quick Comparison

If you invest ₹10,000/month SIP for 20 years at 12% returns, you get ₹99.9 lakhs. The same total amount (₹24 lakhs) invested as lumpsum on day 1 grows to ₹2.32 crores. Lumpsum wins mathematically — but SIP is practical for salaried individuals and protects against timing risk.

How to Use This SIP Calculator

  1. Enter your monthly investment amount using the slider or type directly
  2. Set your expected annual return rate (12% is reasonable for equity mutual funds over 10+ years)
  3. Choose your investment duration
  4. Enable "Annual Step-up" if you plan to increase SIP yearly (recommended: 10%)
  5. Toggle inflation and LTCG tax for the reality check — this is what your money is actually worth
What is SIP (Systematic Investment Plan)?
SIP is a method of investing a fixed amount regularly (usually monthly) in mutual funds. It helps you build wealth through rupee cost averaging and the power of compounding over time.
How is SIP return calculated?
SIP returns are calculated using the formula: FV = P × [((1+r)^n - 1) / r] × (1+r), where P is the monthly investment, r is the monthly rate of return (annual rate / 12), and n is the total number of months.
What is step-up SIP?
Step-up SIP (also called top-up SIP) means increasing your monthly SIP amount by a fixed percentage every year. For example, a 10% step-up on ₹10,000/month means you invest ₹11,000 in year 2, ₹12,100 in year 3, and so on. This significantly boosts your final corpus.
Why should I adjust for inflation?
Inflation reduces the purchasing power of money over time. At 6% inflation, ₹1 crore in 20 years will only buy what ~₹31 lakhs buys today. Adjusting for inflation shows you the real value of your future corpus in today's terms.
How does LTCG tax affect my SIP returns?
As per Budget 2024-25, Long Term Capital Gains (LTCG) on equity mutual funds above ₹1.25 lakh are taxed at 12.5% plus 4% cess. This applies when you redeem after holding for more than 1 year. Our calculator deducts this tax to show your actual take-home amount.
What is a good SIP amount to start with?
You can start a SIP with as little as ₹500/month. However, the ideal amount depends on your financial goals. A good rule of thumb: to build ₹1 crore in 15 years at 12% returns, you need approximately ₹20,000/month SIP.
Is SIP better than lumpsum investment?
Neither is universally better. SIP wins in volatile markets through rupee cost averaging, while lumpsum wins in consistently rising markets. SIP is better for salaried individuals who invest from monthly income. Use our Lumpsum vs SIP calculator to compare for your specific situation.
What happens if I miss a SIP installment?
Missing one or two SIP installments won't significantly impact your long-term returns. However, consistency is key to benefiting from compounding. Most fund houses don't charge penalties for missed installments — they simply skip that month.

Related Calculators

SWP Calculator

Plan withdrawals from your corpus

 Lumpsum vs SIP

Compare both strategies head-to-head