🇮🇳 SIP
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Mutual Funds
SIP Calculator
Enter your monthly SIP amount, expected annual return, and investment tenure to instantly see the maturity corpus, total wealth gain, CAGR, and a year-by-year growth table. Compare a Step-Up SIP (with annual increases) against a flat SIP, see how SIP performs against a lump sum investment, and check the inflation-adjusted real value of your corpus.
SIP Calculator
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Maturity Amount
Lump Sum vs SIP Comparison
Compare investing a lump sum amount once vs spreading it as monthly SIP over the same period.
Year-wise SIP Growth
Run the calculator to see year-by-year growth. Based on your SIP inputs.
| Year | Monthly SIP | Invested (yr) | Cumul. Invested | Portfolio Value | Wealth Gain |
|---|---|---|---|---|---|
| Run the calculator first. | |||||
How SIP Returns Are Calculated
What is SIP?
SIP (Systematic Investment Plan) = investing a fixed
amount in a mutual fund at regular intervals (monthly).
Benefits:
- Rupee Cost Averaging: buy more units when NAV is low
- Disciplined investing: automatic, habit-forming
- Power of compounding: returns on returns
- Flexible: start with as low as ₹500/month
SIP Future Value Formula
M = P × [{(1 + r)^n - 1} / r] × (1 + r)
Where:
M = Maturity Amount (Future Value)
P = Monthly SIP amount
r = Monthly return rate = Annual Rate / 12 / 100
n = Total months (years × 12)
Example: ₹10,000/month, 12% p.a., 15 years
r = 12/12/100 = 0.01
n = 15 × 12 = 180 months
M = 10,000 × [(1.01^180 - 1)/0.01] × 1.01
M = ₹50,45,760 (approx)
Step-Up SIP Formula
In a Step-Up SIP, your monthly amount increases by
a fixed % each year (e.g., 10% annually).
Year 1: ₹10,000/month
Year 2: ₹11,000/month (+10%)
Year 3: ₹12,100/month (+10%)
...and so on
Step-Up SIP significantly grows your corpus vs
flat SIP because contributions scale with income.
₹10,000/month flat for 20yr @ 12%: ₹99.9L
₹10,000/month +10% for 20yr @ 12%: ₹2.06Cr (+106%!)
Rupee Cost Averaging
When NAV is HIGH you buy FEWER units
When NAV is LOW you buy MORE units
Over time, your average cost per unit is LOWER
than the average NAV - this is rupee cost averaging.
Example:
Month 1: NAV ₹100, ₹10,000 100 units
Month 2: NAV ₹80, ₹10,000 125 units
Month 3: NAV ₹120, ₹10,000 83 units
Total: ₹30,000 invested, 308 units
Avg cost: ₹97.40 vs avg NAV ₹100
CAGR vs Absolute Returns
Absolute Return = (Maturity - Invested) / Invested × 100
CAGR (for lump sum) = (Final/Initial)^(1/years) - 1
XIRR (for SIP) = internal rate of return that sets
NPV of all cash flows to zero.
Use XIRR to compare SIP returns.
For SIP at 12% p.a. over 15 years:
Invested: ₹18,00,000
Maturity: ₹50,45,760
Absolute Return: 180.3%
XIRR: ~12% p.a.
Frequently Asked Questions
SIP (Systematic Investment Plan) allows you to invest a fixed monthly amount in a mutual fund. Each month, units are purchased at the prevailing NAV (Net Asset Value). Over time, you accumulate units at various prices - buying more when NAV is low and fewer when high. This is rupee cost averaging. SIPs can be started with ₹500/month at most fund houses, making investing accessible at any income level. You can pause, modify, or stop a SIP without penalty.
Historical returns by category (10-year averages): Large Cap: 10–13% CAGR. Index Funds (Nifty 50): 11–13% CAGR. Flexi Cap: 11–15% CAGR. Mid Cap: 13–17% CAGR. Small Cap: 15–20% CAGR. Hybrid/Balanced Advantage: 8–11% CAGR. These are long-term averages - short-term returns vary significantly and can be negative. For financial planning, use 10–12% as a conservative estimate. Past returns do not guarantee future performance.
A Step-Up SIP (Top-Up SIP) increases your monthly contribution by a fixed percentage each year - typically 10–15%, aligned with expected salary growth. Example: ₹10,000/month SIP stepped up 10% annually at 12% return for 20 years generates approximately ₹1.9 crore vs approximately ₹1 crore for a flat ₹10,000 SIP. The extra corpus is built largely from modest annual increases. Step-Up SIPs are one of the most effective wealth accelerators - starting early with a reasonable amount and stepping up annually beats starting with a large flat amount.
When you invest the same amount monthly, you buy more mutual fund units when NAV is low and fewer when high. Over time, your average cost per unit tends to be lower than the average NAV over the period. Example: NAV oscillates between ₹50 and ₹150. ₹10,000 invested monthly: at ₹50 you get 200 units; at ₹150 you get 67 units. Your average cost per unit is less than (50+150)÷2 = ₹100. This averaging effect reduces the damage of market timing errors and smooths out volatility over investment cycles.
In a steadily rising market, lump sum wins - all capital compounds from day 1. In volatile or sideways markets, SIP often wins through rupee cost averaging. For most investors, SIP is the better practical choice because: (1) most don't have a large lump sum readily available, (2) SIP removes timing risk - there's no anxiety about 'is now a good time?', (3) builds saving discipline. If you have a lump sum and a long horizon, consider splitting: invest 50% as lump sum immediately and SIP the rest over 12–18 months.
Yes - SIP is highly flexible. You can: pause SIP (temporarily suspend contributions without redeeming units), stop SIP entirely (existing units remain invested and continue to grow), increase or decrease the SIP amount, step up the amount annually with a Step-Up SIP instruction, switch the SIP to a different fund within the same AMC. There are no exit loads or penalties for pausing or stopping a SIP. Contact your fund house, AMC, or platform (Zerodha, Groww, ICICI Direct, etc.) to make changes.
ELSS (Equity Linked Savings Scheme) is an equity mutual fund with a mandatory 3-year lock-in per instalment. Benefits: (1) Section 80C deduction up to ₹1.5 lakh/year on investments (Old Tax Regime only). (2) Only 3-year lock-in vs 5+ years for PPF, NSC, or 5-year FD. (3) Equity-like returns potential (12–15% CAGR historically). (4) LTCG tax at 12.5% above ₹1.25 lakh gain - lower than income tax slab for most. Not available under the New Tax Regime.
Equity Mutual Fund SIP (post Budget 2024): LTCG (held 12+ months): 12.5% on gains above ₹1.25 lakh/year. STCG (held under 12 months): 20%. Each SIP instalment counts separately from its purchase date. So the instalment invested 14 months ago qualifies as LTCG; the instalment invested 10 months ago is STCG if redeemed now. Debt Mutual Fund SIP: all gains taxed at slab rate regardless of holding period (since April 2023). ELSS: 3-year lock-in per instalment, then 12.5% LTCG above ₹1.25L.
SIP Calculator India - Understanding SIP Returns, Step-Up and Rupee Cost Averaging
SIP is one of the most powerful wealth-building tools available to Indian retail investors - but its true power comes from two things most people underestimate: the compounding of returns over long periods, and the discipline of continuing through market downturns. A ₹10,000 monthly SIP at 12% return for 20 years generates ₹99.9 lakh - out of which ₹24 lakh is what you invested and ₹75.9 lakh is wealth created by compounding. The wealth gain exceeds the investment by 3×.
SIP vs Step-Up SIP - the compounding difference: Starting SIP ₹10,000/month at 12% return for 20 years: corpus = ₹99.9 lakh. Same SIP stepped up 10% every year: corpus = approximately ₹1.89 crore - nearly 2× for a moderate annual increase in contribution. Total invested in the step-up: ₹68.7 lakh (vs ₹24L flat). Wealth gain in step-up: ₹1.2 crore.
How the SIP Formula Works
SIP maturity is calculated using the future value of an annuity formula: M = P × [((1+r)^n − 1) ÷ r] × (1+r), where P = monthly investment, r = monthly return rate (annual rate ÷ 12 ÷ 100), n = total months.
Example: ₹5,000/month at 12% p.a. for 10 years. r = 12 ÷ 12 ÷ 100 = 0.01. n = 120. M = 5,000 × [((1.01)^120 − 1) ÷ 0.01] × 1.01 = 5,000 × 230.04 × 1.01 = ₹11.62 lakh. Total invested = ₹6 lakh. Wealth gain = ₹5.62 lakh.
Historical SIP Returns by Mutual Fund Category
Equity Fund Categories
- Large Cap funds: 10–13% CAGR (10-year average). Lower risk, established companies. Index funds included here.
- Flexi Cap / Multi Cap: 11–15% CAGR. Broader universe, managed by fund manager discretion.
- Mid Cap funds: 13–17% CAGR. Higher returns, higher short-term volatility.
- Small Cap funds: 15–20% CAGR long-term. High volatility, stay invested 7+ years.
- ELSS funds: 12–15% CAGR. 3-year lock-in, 80C deduction (Old Regime).
For Conservative Investors
- Hybrid / Balanced Advantage: 8–11% CAGR. Dynamic equity-debt allocation.
- Index Funds (Nifty 50): ~11–13% CAGR long-term. Lowest cost, market-return matching.
- Debt funds: 6–8% CAGR. Now taxed at slab rate. Suitable for 1–3 year goals.
- Use conservative estimates (10–12%) for long-term financial planning
- Past returns are not guaranteed - actual returns vary by market cycle
SIP Taxation - LTCG, STCG and ELSS (2025)
Each SIP instalment has its own purchase date - for tax purposes, each monthly investment is treated separately. Key tax rules for 2025:
- Equity Mutual Fund LTCG (held 12+ months): 12.5% on gains above ₹1.25 lakh per year (raised from 10% in Budget 2024). Each SIP instalment qualifies as LTCG after 12 months from its specific purchase date.
- Equity Mutual Fund STCG (held under 12 months): 20% (raised from 15% in Budget 2024).
- ELSS: 3-year lock-in applies per instalment. LTCG at 12.5% above ₹1.25L. The 80C deduction (up to ₹1.5L/year) applies only under the Old Tax Regime.
- Debt Mutual Funds: All gains (short and long term) taxed at applicable income tax slab rate since April 2023 budget change.
How this calculator works, and where the numbers come from
The SIP Calculator applies the standard formula for this calculation to the values you enter and updates the result as you type. The calculation itself happens in your browser, and the page explains the method so you can check any result by hand.
Please note: Projections assume the inputs you enter stay constant; real returns vary. Results are estimates, not financial advice.
Sources and further reading
Learn more
Read our guide: Compound Interest and the Rule of 72, Checked Against the Math