SIP Calculator

Visualize the power of compounding by calculating wealth from your Systematic Investment Plans (SIP).

Investment Plan

₹
₹500₹1L
%
1%30%
Yr
1 Yr40 Yr

Invested Amount

₹ 6,00,000

Est. Returns

₹ 5,61,695

Total Value

₹ 11,61,695

₹ 11,61,695

Expected Final Wealth

What is a SIP Calculator?

A Systematic Investment Plan (SIP) calculator helps you calculate the expected returns on your mutual fund investments made through SIPs. The calculator uses the compound interest formula to show you how small but regular monthly investments can grow into a massive corpus over a long period.

The Magic of Compounding

Compounding is what happens when the returns on your investment start earning returns themselves. By staying invested for longer timeframes (10, 15, or 20+ years), compounding drastically accelerates wealth creation. The key to SIP is consistency and time in the market.

SIP Formula:

Future value of an annuity (end-of-period payments):

FV = P × [ (1 + i)^n - 1 ] × (1 + i) / i
  • FV = Future Value (Corpus)
  • P = Monthly SIP amount
  • i = Monthly return rate (Annual % ÷ 12 ÷ 100)
  • n = Number of months (Years × 12)
Example: ₹10,000/month at 12% for 10 years
i = 12/12/100 = 0.01  |  n = 120
FV ≈ ₹23.23 Lakh

SIP Wealth Projection Table (at 12% p.a.)

How much wealth can different monthly SIP amounts create over time? Reference table at an assumed 12% annual return.

Monthly SIP 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years
₹2,000₹1.64L₹4.65L₹10.07L₹19.98L₹37.97L₹70.06L
₹5,000₹4.12L₹11.62L₹25.23L₹49.96L₹94.88L₹1.75Cr
₹10,000₹8.25L₹23.23L₹50.46L₹99.91L₹1.90Cr₹3.52Cr
₹15,000₹12.37L₹34.85L₹75.69L₹1.50Cr₹2.85Cr₹5.27Cr
₹25,000₹20.62L₹58.08L₹1.26Cr₹2.50Cr₹4.74Cr₹8.79Cr
₹50,000₹41.23L₹1.16Cr₹2.52Cr₹4.99Cr₹9.49Cr₹17.57Cr

Projections are estimates at 12% CAGR. Actual mutual fund returns vary and are not guaranteed. Past performance is not indicative of future results.

How Much SIP Do You Need?

Monthly SIP required to reach common wealth goals at 12% p.a. return.

Target CorpusIn 10 YearsIn 15 YearsIn 20 Years
₹25 Lakh₹10,760₹4,950₹2,500
₹50 Lakh₹21,530₹9,910₹5,000
₹1 Crore₹43,047₹19,819₹10,010
₹2 Crore₹86,094₹39,638₹20,020
₹5 Crore₹2.15L₹99,095₹50,048

SIP vs Lumpsum: Which is Better?

₹10,000/month SIP vs ₹1.2L lumpsum at 12% p.a. — who wins?

PeriodSIP ₹10K/moLumpsum ₹1.2LWinner
5 Years₹8.25L₹2.11LSIP ✓
10 Years₹23.23L₹3.73LSIP ✓
15 Years₹50.46L₹6.57LSIP ✓
20 Years₹99.91L₹11.58LSIP ✓
Note: Lumpsum can outperform SIP if invested at a market low and held long-term. SIP wins on consistency, discipline, and rupee cost averaging for salaried investors.

5 Rules to Maximize Your SIP Returns

1
Start Early — Time Beats Amount

₹5,000/month for 30 years creates ₹1.75 Cr. Starting 10 years later with ₹10,000/month only gives ₹99.9L — half the wealth at double the investment. Time in the market is your biggest asset.

2
Never Stop During Downturns

Market crashes are the best time for SIP investors. You buy more units at lower NAV, and when markets recover, your corpus jumps. Stopping a SIP during a crash locks in losses.

3
Step-Up SIP Annually by 10%

Increase your SIP amount by 10% each year in line with salary hikes. A ₹10,000 SIP that steps up 10% annually for 20 years creates 40% more wealth than a flat SIP.

4
Choose Direct Plans over Regular

Direct plans have no distributor commission — typically 0.5–1% lower expense ratio. On a 20-year ₹10,000 SIP, this saves ₹10–20 lakh in compounded costs.

5
Use ELSS for Tax + Returns

ELSS (Equity Linked Savings Scheme) mutual funds qualify for ₹1.5 lakh deduction under Section 80C (Old Regime) with just 3 years lock-in — the shortest among all 80C investments.

Frequently Asked Questions

SIP (Systematic Investment Plan) lets you invest a fixed amount in mutual funds at regular intervals (monthly/quarterly). It uses rupee cost averaging — you buy more units when prices are low and fewer when prices are high, reducing the impact of market volatility over time.
At a 12% annual return, a ₹10,000/month SIP for 10 years grows to approximately ₹23.23 lakh. You invested ₹12 lakh, and compounding adds ₹11.23 lakh in returns — nearly doubling your money. Use the calculator above for any amount and rate.
SIP in equity mutual funds typically delivers 10-15% CAGR over the long term versus 6.5-7.5% for FDs. However, SIP returns are market-linked and not guaranteed. FDs are better for short-term, risk-free needs. For wealth creation over 7+ years, SIP historically outperforms FDs significantly.
SIP is better for salaried investors — it averages out market volatility (rupee cost averaging) and builds discipline. Lumpsum can outperform SIP if timed at a market low. For most people who can't time the market, SIP is the safer choice for long-term wealth creation.
Compounding means returns earning returns. Example: ₹5,000/month at 12% for 30 years creates ₹1.75 crore, but you only invested ₹18 lakh. The remaining ₹1.57 crore is pure compounding. Starting 10 years later at ₹10,000/month only gives ₹1 crore — half the wealth at double the investment.
Step-Up (or Top-Up) SIP lets you automatically increase your monthly investment by a fixed % or amount each year (e.g., 10% annually). This aligns with salary hikes and dramatically boosts your final corpus — a ₹10,000 SIP stepping up 10%/year over 20 years creates nearly 40% more wealth than a flat SIP.
Yes. ELSS (Equity Linked Savings Scheme) mutual funds are SIP-compatible and qualify for deduction under Section 80C (up to ₹1.5 lakh per year) under the Old Tax Regime. ELSS has the shortest lock-in (3 years) among all 80C instruments. Under the New Tax Regime, 80C deductions are not available.
No, equity SIP returns are market-linked and not guaranteed. Historically, diversified equity SIPs over 7+ years in India have delivered 10-15% CAGR. Debt fund SIPs offer more stable but lower returns (6-8%). Our calculator uses your assumed rate as an estimate — actual results will vary.
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