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SIP Calculator

Calculate returns on your SIP mutual fund investments over time.

%
years

Results

Future Value₹11.62 L
Total Invested₹6.00 L
Wealth Gained₹5.62 L
Breakdown
Invested
6,00,000
Returns
5,61,695
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What is SIP?

SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly in mutual funds — typically every month. Instead of investing a large lump sum all at once, SIP lets you invest small amounts periodically, which helps average out market volatility through a powerful strategy called rupee cost averaging.

SIP is the most popular investment method in India, with over 8.5 Crore active SIP accounts as of 2025, contributing approximately ₹18,000 Crores per month to the mutual fund industry. The reason for this massive popularity? SIPs make investing accessible to everyone — you can start with as little as ₹500 per month on platforms like Groww, Zerodha Coin, Paytm Money, or directly through AMC websites like SBI MF, HDFC MF, and ICICI Prudential.

The magic of SIP lies in the power of compounding. When you invest ₹5,000 per month at 12% annual returns for 20 years, your total investment of ₹12 Lakhs grows to approximately ₹49.9 Lakhs — that is over 4x your investment! And if you continue for 25 years, the same ₹5,000 monthly SIP creates ₹94.9 Lakhs — nearly ₹1 Crore from just ₹15 Lakhs invested.

Rupee cost averaging is another key advantage of SIP. When the market falls, your fixed SIP amount buys more units at lower prices. When the market rises, it buys fewer units at higher prices. Over time, this averages out the cost per unit and reduces the risk of investing at the wrong time.

SIP is available in all types of mutual funds: equity (large-cap, mid-cap, small-cap, flexi-cap), debt (short-term, corporate bond, liquid), hybrid (aggressive, balanced, conservative), index funds (Nifty 50, Sensex), and ELSS (tax-saving funds under Section 80C).

Want to see how increasing your SIP annually can boost returns even further? Try our Step-Up SIP Calculator. Planning for a one-time investment instead? Use our Lumpsum Calculator.

Formula

The SIP future value formula assumes each monthly installment compounds independently:

FV = P × [((1 + r)^n − 1) / r] × (1 + r)

Where: - P = Monthly SIP amount - r = Monthly rate of return = (Annual return ÷ 12 ÷ 100) - n = Total number of months

Detailed worked example:

₹10,000/month SIP at 12% annual return for 15 years: - r = 12 / 12 / 100 = 0.01 - n = 15 × 12 = 180 months - FV = 10,000 × [((1.01)^180 − 1) / 0.01] × (1.01) - FV = 10,000 × [(5.996 − 1) / 0.01] × 1.01 - FV = 10,000 × 499.6 × 1.01 - FV ≈ ₹50,45,760

Total Invested = ₹10,000 × 180 = ₹18,00,000 Wealth Gained = ₹50,45,760 − ₹18,00,000 = ₹32,45,760

SIP returns at different amounts (12% for 20 years): - ₹1,000/month → ₹9.99 Lakhs - ₹5,000/month → ₹49.9 Lakhs - ₹10,000/month → ₹99.9 Lakhs - ₹25,000/month → ₹2.5 Crores

How to use this SIP Calculator?

Using the BetterCalculations SIP Calculator is simple:

1. Enter Monthly Investment: Type the amount you plan to invest every month via SIP. For beginners, ₹1,000-5,000 is a good starting point. Financial planners recommend investing 20-30% of your monthly income.

2. Set Expected Return Rate: Enter the annual return rate you expect. Common benchmarks for Indian mutual funds: Large-cap equity funds: 10-12%, Mid-cap equity: 14-16%, Small-cap equity: 16-20%, Debt funds: 6-8%, Hybrid funds: 10-12%. Use 12% as a conservative estimate for equity SIPs.

3. Choose Time Period: Select your investment horizon in years. SIPs work best over long periods (10+ years) due to compounding. Even 3-5 years is a reasonable minimum for equity SIPs.

4. Read Your Results: The calculator shows your projected future value, total amount invested, and the wealth gained (profit). The doughnut chart visually shows the split between your investment and gains.

Pro tip: Use our Step-Up SIP Calculator to see how increasing your SIP by 10% every year (matching your salary hike) can dramatically boost your final corpus by 40-50%.

Frequently asked questions

What is a good SIP amount to start with?
You can start with as little as ₹500 per month. However, for meaningful wealth creation, financial planners recommend investing at least 20-30% of your monthly income in SIPs. A person earning ₹50,000/month should aim for ₹10,000-15,000 in SIPs.
Is 12% return realistic for SIP?
Historically, large-cap equity mutual funds in India (like Nifty 50 index funds) have delivered 10-12% CAGR over 10+ years, while mid/small-cap funds have delivered 14-20%. However, past performance does not guarantee future returns. For conservative planning, use 10-12% for equity SIPs and 6-7% for debt fund SIPs.
SIP vs FD — which is better?
FDs give guaranteed returns (6-7%) but with lower growth. SIPs in equity mutual funds have historically given 12-15% returns over 10+ years but carry market risk. For goals less than 3 years, FDs are safer. For 5+ year goals, SIPs in equity funds typically outperform FDs significantly even after accounting for market volatility.
Can I stop or pause my SIP?
Yes, you can stop, pause, or modify your SIP anytime without any penalty or exit load (after the lock-in period for ELSS funds). Your already invested amount remains in the fund and continues to grow based on market performance.
What is the best day to invest in SIP?
Studies show that the date of SIP investment makes very little difference to long-term returns. Whether you invest on the 1st, 10th, or 25th of the month, the difference in returns over 10+ years is negligible (less than 0.5%). Choose a date right after your salary credit for convenience.
Are SIP returns taxable?
Yes. For equity mutual funds: gains on units held less than 1 year (STCG) are taxed at 20%. Gains on units held more than 1 year (LTCG) are taxed at 12.5% on gains exceeding ₹1.25 Lakhs per year. Each SIP installment is treated as a separate investment for calculating the holding period.
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