SIP Calculator
Project the future value of your monthly SIP investments, including the option to model an annual step-up in your contribution.
- Invested Amount₹6.00 Lakh51.6%
- Estimated Returns₹5.62 Lakh48.4%
Growth Over Time
What is a SIP?
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month rather than investing a lump sum. It builds long-term wealth through disciplined investing and rupee-cost averaging, smoothing out the impact of short-term market volatility.
How SIP Returns Are Calculated
Each monthly contribution compounds at your expected rate of return for the number of months remaining in your investment horizon. Because later contributions have less time to grow, most of your final corpus comes from the compounding of your earliest investments — which is why starting early matters more than investing large amounts later.
Example Calculation
Investing ₹5,000 every month for 10 years at an expected 12% annual return grows to approximately ₹11.6 lakh, of which ₹6 lakh is your own contribution and the remaining ₹5.6 lakh is estimated returns.
Frequently Asked Questions
What is a SIP?
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund at regular intervals — usually monthly — instead of investing a lump sum, helping you build wealth through disciplined, long-term investing.
How is the SIP maturity value calculated?
Each monthly contribution is treated as a separate investment that compounds at the expected monthly rate of return for the remaining months in the tenure. The sum of all these compounded contributions gives the maturity value.
What is a step-up SIP?
A step-up SIP automatically increases your monthly contribution by a fixed percentage every year, helping your investment keep pace with rising income and accelerating corpus growth.
Is the expected return guaranteed?
No. The expected annual return is an assumption you provide based on historical fund performance or market expectations — actual mutual fund returns fluctuate and are never guaranteed.
Can I stop or pause a SIP?
Yes, most mutual funds allow you to pause or stop a SIP at any time without penalty, though doing so will reduce your projected maturity value compared to staying invested for the full tenure.
SIP vs lumpsum — which is better?
SIPs suit investors with regular income who want to average out market volatility over time, while lumpsum investing suits those with a large amount available upfront and a higher risk tolerance. Compare both using our Lumpsum Calculator.