SIP Calculator
Calculate your SIP maturity value, total returns and see a year-by-year growth breakdown of your investments.
| Year | Amount Invested | Returns Earned | Total Value | Growth |
|---|---|---|---|---|
| Year 1 | ₹60,000 | +₹3,832 | ₹63,832 | |
| Year 2 | ₹1,20,000 | +₹15,325 | ₹1,35,325 | |
| Year 3 | ₹1,80,000 | +₹35,396 | ₹2,15,396 | |
| Year 4 | ₹2,40,000 | +₹65,076 | ₹3,05,076 | |
| Year 5 | ₹3,00,000 | +₹1,05,518 | ₹4,05,518 | |
| Year 6 | ₹3,60,000 | +₹1,58,013 | ₹5,18,013 | |
| Year 7 | ₹4,20,000 | +₹2,24,007 | ₹6,44,007 | |
| Year 8 | ₹4,80,000 | +₹3,05,120 | ₹7,85,120 | |
| Year 9 | ₹5,40,000 | +₹4,03,167 | ₹9,43,167 | |
| Year 10 | ₹6,00,000 | +₹5,20,179 | ₹11,20,179 |
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a method of investing in mutual funds where you contribute a fixed amount at regular intervals — typically monthly — rather than a large lump sum at once. Each contribution purchases units of the chosen mutual fund at the prevailing Net Asset Value (NAV). Over time, these units accumulate and grow through the combined power of market participation and compounding. You can use our financial calculators to plan every aspect of your investment journey.
How Does the SIP Calculator Work?
The calculator uses the Future Value of Annuity Due formula: M = P × [(1+i)ⁿ – 1] ÷ i × (1+i), where M is the maturity value, P is the periodic investment, i is the effective rate per period and n is the total number of instalments. The periodic rate i is calculated as (1 + Annual Rate)^(1/frequency) − 1 — not simply Annual Rate ÷ 12. This ensures returns compound correctly at the stated annual rate regardless of investment frequency. Because each instalment is invested at a different point in time, earlier contributions have more time to compound — which is why starting early makes such a dramatic difference to your final corpus. Compare this with our Compound Interest Calculator to understand how compounding works on a lump sum.
Benefits of Investing Through SIP
- Disciplined saving: Automating a monthly investment removes the decision fatigue of timing the market.
- Rupee cost averaging: A fixed amount automatically buys more units when prices are low and fewer when prices are high.
- Power of compounding: Returns earned in earlier periods are reinvested and themselves earn returns, creating an accelerating snowball effect.
- Flexibility: You can start, pause, increase, decrease or stop a SIP at any time without penalty in most open-ended funds.
- Low entry barrier: SIPs start from as low as ₹500/month, making wealth creation accessible to everyone.
What Returns Can You Realistically Expect?
SIP returns are market-linked and not guaranteed. Historically, diversified equity mutual funds in India have delivered annualised returns of 10%–15% over long periods (10+ years), though individual fund performance varies. Conservative assumptions (8%–10%) are safer for planning, while aggressive assumptions (14%–15%) reflect top-performing funds in bull markets.
SIP vs Lump Sum — Which is Better?
Lump sum can outperform SIP in a consistently rising market since the entire corpus benefits from compounding from day one. However, SIP works better in volatile markets by spreading purchases across different price points. For most salaried investors, SIP is more practical since it aligns with monthly income cycles. Use our Lump Sum Calculator to model a one-time investment scenario alongside your SIP plan.
Tax Treatment of SIP Returns
Each SIP instalment is treated as a separate investment for tax purposes. For Equity Mutual Funds held over 1 year: Long Term Capital Gains (LTCG) above ₹1 lakh per year are taxed at 12.5%. Gains on units held under 1 year are taxed as Short Term Capital Gains (STCG) at 20%. ELSS funds qualify for deduction under Section 80C up to ₹1.5 lakh. Use our Income Tax Calculator to understand how SIP gains affect your overall tax liability.
Tips to Maximise Your SIP Returns
- Start early: Even a 5-year head start can more than double your eventual corpus due to compounding.
- Use Step-Up SIP: Increasing your SIP by just 10% every year dramatically accelerates wealth creation.
- Stay invested through volatility: Down markets are when SIPs accumulate the most units at the lowest prices. Stopping during a correction is the most common investor mistake.
- Review annually, not reactively: Avoid making changes in response to short-term market news.
✓Verified by ToollyX Team · Last updated June 2026
Frequently Asked Questions
Disclaimer: Results are indicative estimates based on the values entered. Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. This calculator is for educational purposes only and does not constitute financial advice.