SIP Calculator
Calculate the future value of your Systematic Investment Plan (SIP) in mutual funds.
Investment Details
Amount you plan to invest every month
Historical equity mutual fund returns: 10-15%
How long you plan to invest
Note: This calculator assumes returns remain constant. Actual returns may vary based on market conditions.
Estimated Returns
₹0
Value after 10 years of SIP investing
Investment Breakdown
Growth Composition
Understanding SIP Returns
SIP (Systematic Investment Plan) allows you to invest a fixed amount regularly in mutual funds. The power of compounding helps your wealth grow exponentially over time.
Key Benefits of SIP
- Rupee Cost Averaging: Buy more units when prices are low, fewer when high
- Power of Compounding: Returns generate further returns
- Disciplined Investing: Automated monthly investments
- Flexibility: Start with as low as ₹500/month
How Much Should You Invest?
- Start with 10-20% of your monthly income
- Increase gradually with salary increments
- Continue for long-term (minimum 5 years)
- Don't stop during market falls - that's when you buy more units
How to Use the SIP Calculator
Enter three inputs: (1) your monthly SIP amount in rupees, (2) the expected annual return rate as a percentage, and (3) the investment period in years. The calculator instantly shows your estimated future corpus, total amount invested, and total wealth gained.
For example: ₹10,000/month at 12% annual return for 10 years grows to approximately ₹23.2 lakh — on a total investment of just ₹12 lakh. The ₹11.2 lakh gain is the power of compounding at work.
What Is SIP (Systematic Investment Plan)?
A SIP is a method of investing a fixed amount regularly — typically monthly — into a mutual fund. Unlike a lump sum investment, SIP spreads your investment across market cycles, averaging out the cost per unit. This strategy, called rupee cost averaging, reduces the impact of market volatility and makes investing accessible even for those starting with small amounts.
Frequently Asked Questions
What is a good monthly SIP amount to start with in India?
You can start a SIP with as little as ₹500/month. For meaningful wealth creation, aim to invest 10-20% of your monthly income. A ₹50,000 salary earner starting with ₹5,000-10,000/month in a diversified equity fund is on the right track.
What return rate should I use in the SIP calculator?
Diversified equity mutual funds have historically returned 10-15% annually over 10+ year periods. Use 10-12% for conservative planning, 12-15% for aggressive scenarios. Avoid projecting above 15%.
Is SIP better than FD for long-term wealth building?
Yes, for goals 5+ years away. FDs offer 6-7% (fully taxable); equity funds average 10-15% with only 10% LTCG tax on gains above ₹1.25 lakh. Compounding makes the gap grow significantly over time.
Can I stop a SIP midway?
Yes, you can pause or stop a SIP anytime (except ELSS, which has a 3-year lock-in). If cash-strapped, reduce the amount rather than stopping — the compounding benefit is hard to restart.
How accurate is this SIP calculator?
This calculator assumes a constant annual return rate, which is a simplification. Actual mutual fund returns vary year to year. Use this for planning estimates, not guaranteed projections. A Certified Financial Planner can help model more realistic scenarios.