What This SIP Calculator Shows You
Enter your monthly SIP amount, expected return rate, and number of years — this calculator instantly shows your estimated maturity value, total amount invested, and the wealth you could gain. You also get the inflation-adjusted value (what that corpus is worth in today's money), so you can plan with your eyes open.
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How to Use This SIP Calculator
- Monthly SIP amount — enter how much you plan to invest every month (e.g. ₹5,000 or ₹25,000).
- Expected annual return — most equity mutual funds have historically returned 10–14% p.a. over long periods. A common planning assumption is 12%.
- Investment period — choose how many years you will keep investing (1 to 40 years).
- Inflation rate (optional) — enter an assumed inflation rate (e.g. 6%) to see the real purchasing power of your future corpus.
- Hit Calculate — the tool shows total invested, estimated corpus, wealth gained, and the inflation-adjusted value.
A Worked Example
Say you invest ₹10,000 every month for 15 years at an assumed annual return of 12%.
- Total amount invested: ₹10,000 × 180 months = ₹18,00,000 (₹18 lakh)
- Estimated maturity value: approximately ₹50,45,760 (~₹50.5 lakh)
- Wealth gained (returns): ₹50.5 lakh − ₹18 lakh = ~₹32.5 lakh
- Inflation-adjusted value (at 6% inflation): approximately ₹21 lakh in today's purchasing power
That means compounding nearly triples your money even after adjusting for inflation — without picking individual stocks or timing the market.
SIP Returns at a Glance — ₹10,000/Month at 12% p.a.
This table shows how a fixed ₹10,000 monthly SIP could grow over time. Use it to quickly spot the power of staying invested longer.
| Years | Total Invested | Estimated Corpus | Wealth Gained |
|---|---|---|---|
| 5 | ₹6,00,000 | ₹8,24,864 | ₹2,24,864 |
| 10 | ₹12,00,000 | ₹23,23,391 | ₹11,23,391 |
| 15 | ₹18,00,000 | ₹50,45,760 | ₹32,45,760 |
| 20 | ₹24,00,000 | ₹99,91,479 (~₹1 crore) | ₹75,91,479 |
| 25 | ₹30,00,000 | ₹1,89,76,351 (~₹1.9 crore) | ₹1,59,76,351 |
Figures are indicative. Returns are not guaranteed. Past performance of mutual funds is not a reliable predictor of future results. Consult a registered investment adviser for personalised advice.
How the SIP Return Is Calculated
A SIP (Systematic Investment Plan) invests a fixed amount every month. Each instalment compounds at the chosen rate for a different number of months — the first instalment compounds the longest, the last one barely at all. The standard formula is:
FV = P × [ (1 + r)^n − 1 ] / r × (1 + r)
Where:
P = monthly SIP amount (₹)
r = monthly rate = annual rate ÷ 12
(e.g. 12% p.a. → r = 0.12 ÷ 12 = 0.01)
n = total number of months
(e.g. 15 years → n = 180)
FV = future value / estimated maturity valueFor the inflation-adjusted value, the future corpus is further discounted:
Real Value = FV ÷ (1 + inflation rate)^yearsSo ₹50.5 lakh in 15 years, at 6% inflation, is worth roughly ₹50,45,760 ÷ (1.06)^15 ≈ ₹21.1 lakh in today's money.
Are SIP Returns Guaranteed?
No. Mutual fund SIPs are market-linked — the 12% figure is a common long-term planning assumption, not a promised return. Equity funds can deliver much more in good years and can fall in bad ones.
The Association of Mutual Funds in India (AMFI) and SEBI require every fund house to show the disclaimer: "Mutual fund investments are subject to market risks." Always read the scheme information document before investing.
SIP vs Lumpsum — One-Line Answer
A lumpsum investment puts all your money to work on day one — great if you already have the capital and markets are low. A SIP spreads investment over months and years, averaging out purchase cost (called rupee cost averaging) — ideal for regular salaried investors who invest from monthly income.
Want to Increase Your SIP Every Year?
A step-up SIP lets you raise your monthly amount by a fixed percentage each year (e.g. 10% p.a.). Since most salaries grow over time, this can dramatically increase your final corpus. Try our Step Up SIP Calculator – See How Your Growing SIP Builds Wealth to model exactly how much more you could accumulate.
Practical Tips to Get the Most from Your SIP
- Start early, stay long. The table above shows the corpus nearly doubles every 5 years after the first decade — compounding rewards patience more than large amounts.
- Don't stop during a market fall. Falling markets mean you buy more units for the same ₹ — the whole point of rupee cost averaging.
- Keep the return assumption realistic. 12% is a popular number for equity funds. Use 8–10% for a conservative estimate with diversified funds, or 6–7% for debt funds.
- Tax on gains matters. For equity mutual funds held over 1 year, long-term capital gains (LTCG) above ₹1 lakh in a financial year are taxed at 12.5% (FY 2025-26 / AY 2026-27, per the Finance Act 2024). Short-term gains (under 1 year) are taxed at 20%. Debt fund gains are taxed as per your income slab.
- ELSS for tax saving. Equity Linked Savings Schemes (ELSS) qualify for ₹1.5 lakh deduction under Section 80C (old tax regime) with a 3-year lock-in — the shortest among 80C options.
- Don't add too many funds. Owning 8 similar equity funds doesn't diversify — it just complicates tracking. Two or three well-chosen funds are usually enough.
Key Tax & Regulatory Facts for FY 2025-26
| Point | Detail |
|---|---|
| LTCG tax (equity funds) | 12.5% on gains above ₹1.25 lakh/year (held > 1 year) |
| STCG tax (equity funds) | 20% (held ≤ 1 year) |
| Debt fund gains | Taxed as per your income slab (no indexation benefit from FY 2024-25) |
| ELSS 80C deduction | Up to ₹1.5 lakh/year under old tax regime only |
| STT on redemption | 0.001% on equity fund units |
| New tax regime | No 80C deduction available; assess both regimes |
Tax rates are as per Finance Act 2024 applicable for AY 2026-27. Always verify at incometax.gov.in or consult a tax professional.
Your SIP journey starts with one number — the amount you can invest comfortably each month. Use the calculator above to find yours, then stay the course.