Investment / SIP Calculator
🇮🇳 SIP 🆓 Free 📈 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

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📊 Historical Returns (India)

Large Cap Funds10–13%
Mid Cap Funds13–17%
Small Cap Funds15–20%
Flexi Cap Funds11–15%
Index Fund (Nifty 50)11–13%
ELSS (Tax saving)12–16%
Debt Funds6–8%
Inflation (India avg)5–6%

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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.