SIP Calculator
See what a monthly SIP in a mutual fund could grow to, how much of it is your money and how much is returns — with an optional yearly step-up.
Your SIP
Returns are not guaranteed. Equity funds have historically been volatile; use a conservative rate for planning.
| Total invested | ₹12,00,000 |
| Estimated returns | ₹11,23,391 |
| Final monthly SIP | ₹10,000 |
Growth over time
| Year | Invested | Value |
|---|---|---|
| 1 | ₹1,20,000 | ₹1,28,093 |
| 5 | ₹6,00,000 | ₹8,24,864 |
| 10 | ₹12,00,000 | ₹23,23,391 |
Quick answer
A SIP (systematic investment plan) invests a fixed amount in a mutual fund every month. At an assumed 12% annual return, ₹10,000 a month for 10 years — ₹12 lakh invested — grows to about ₹23.2 lakh. Returns on equity funds are not guaranteed, so use a conservative rate and treat the result as an estimate, not a promise.
How the SIP value is calculated
Each instalment is treated as invested at the start of the month and compounded monthly at the annual rate divided by 12: FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the monthly amount, i the monthly rate and n the number of months. This is the convention most fund houses and AMFI-style calculators use.
With a step-up, the monthly amount rises by the chosen percentage at the start of every year — matching the "top-up SIP" option many funds offer, and the way most people’s savings grow with their salary.
Tax on mutual fund gains
- Equity funds held more than 12 months: long-term gains above ₹1.25 lakh a year are taxed at 12.5%.
- Equity funds sold within 12 months: short-term gains are taxed at 20%.
- Debt funds bought on or after 1 April 2023: gains are added to your income and taxed at your slab rate.
- ELSS funds qualify for Section 80C (old regime only) and have a 3-year lock-in for each instalment.
- Each SIP instalment has its own purchase date, so the holding period is counted per instalment.
Getting realistic numbers
Large-cap equity funds have historically returned roughly 10–12% a year over long periods, with sharp falls along the way; debt funds return less but are steadier. Inflation of 5–6% a year means ₹1 crore in 20 years buys far less than ₹1 crore today — divide the result by about 3 to see it in today’s money at 6% inflation.
Reference tables & worked examples
| Monthly SIP | 5 years | 10 years | 15 years | 20 years |
|---|---|---|---|---|
| ₹2,000 | ₹1,64,973 | ₹4,64,678 | ₹10,09,152 | ₹19,98,296 |
| ₹5,000 | ₹4,12,432 | ₹11,61,695 | ₹25,22,880 | ₹49,95,740 |
| ₹10,000 | ₹8,24,864 | ₹23,23,391 | ₹50,45,760 | ₹99,91,479 |
| ₹25,000 | ₹20,62,159 | ₹58,08,477 | ₹1,26,14,400 | ₹2,49,78,698 |
| Return | Invested | Value | Returns |
|---|---|---|---|
| 8% | ₹18,00,000 | ₹34,83,451 | ₹16,83,451 |
| 10% | ₹18,00,000 | ₹41,79,243 | ₹23,79,243 |
| 12% | ₹18,00,000 | ₹50,45,760 | ₹32,45,760 |
| 14% | ₹18,00,000 | ₹61,28,538 | ₹43,28,538 |
Frequently asked questions
How is SIP return calculated?
Each monthly instalment compounds at the monthly rate (annual rate ÷ 12) from the month it is invested. The future value formula is P × [((1 + i)^n − 1) ÷ i] × (1 + i).
What will ₹10,000 a month in SIP become in 10 years?
About ₹23.2 lakh at an assumed 12% annual return, of which ₹12 lakh is your own money. At 10% it would be about ₹20.7 lakh.
What is a step-up SIP?
A SIP whose monthly amount increases by a fixed percentage every year, usually in line with salary increases. A 10% yearly step-up on ₹10,000 for 10 years grows to about ₹33.7 lakh at 12%.
Are SIP returns guaranteed?
No. Mutual fund returns depend on markets and can be negative over short periods. The calculator shows what a constant average return would produce.
How are SIP gains taxed?
For equity funds, gains on units held over 12 months are long-term and taxed at 12.5% above ₹1.25 lakh a year; gains on units held 12 months or less are taxed at 20%.
Is SIP better than an FD?
Equity SIPs have historically beaten FDs over long periods but can fall in value; FDs are predictable and insured up to ₹5 lakh per bank. Many people use both for different goals.
Sources
Estimates for general information only — not tax, legal or financial advice. Check your payslip, employer or a qualified adviser before acting.
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