Finance · Free tool
SIP Calculator
Plan a monthly SIP, a step-up SIP (where you raise the amount each year), or a one-time lump-sum investment. See your maturity corpus, total returns and how the money grows year by year.
Year-by-year breakdown
| Year | Monthly SIP | Cumulative invested | Value at year end | Returns till date |
|---|---|---|---|---|
| 1 | ₹10,000 | ₹1,20,000 | ₹1,28,093 | ₹8,093 |
| 2 | ₹10,000 | ₹2,40,000 | ₹2,71,558 | ₹31,558 |
| 3 | ₹10,000 | ₹3,60,000 | ₹4,32,238 | ₹72,238 |
| 4 | ₹10,000 | ₹4,80,000 | ₹6,12,200 | ₹1,32,200 |
| 5 | ₹10,000 | ₹6,00,000 | ₹8,13,757 | ₹2,13,757 |
| 6 | ₹10,000 | ₹7,20,000 | ₹10,39,501 | ₹3,19,501 |
| 7 | ₹10,000 | ₹8,40,000 | ₹12,92,335 | ₹4,52,335 |
| 8 | ₹10,000 | ₹9,60,000 | ₹15,75,508 | ₹6,15,508 |
| 9 | ₹10,000 | ₹10,80,000 | ₹18,92,662 | ₹8,12,662 |
| 10 | ₹10,000 | ₹12,00,000 | ₹22,47,875 | ₹10,47,875 |
| 11 | ₹10,000 | ₹13,20,000 | ₹26,45,713 | ₹13,25,713 |
| 12 | ₹10,000 | ₹14,40,000 | ₹30,91,292 | ₹16,51,292 |
| 13 | ₹10,000 | ₹15,60,000 | ₹35,90,341 | ₹20,30,341 |
| 14 | ₹10,000 | ₹16,80,000 | ₹41,49,275 | ₹24,69,275 |
| 15 | ₹10,000 | ₹18,00,000 | ₹47,75,281 | ₹29,75,281 |
How SIP returns are calculated
A SIP's future value follows the formula FV = P × [((1+r)n − 1) / r] × (1+r) where P is the monthly investment, r is the monthly return (annual ÷ 12 ÷ 100) and n is the number of months. The (1+r) at the end assumes you contribute at the start of each month, which is how most AMCs in India process SIPs.
Why step-up SIP matters
A regular ₹10,000 SIP for 20 years at 12% returns ~₹1 crore. Step it up by just 10% a year — i.e. ₹11,000 in year 2, ₹12,100 in year 3, etc. and the same plan returns close to ₹2 crore. Most online calculators only model the flat version, which understates what an honest investor can actually do as their salary grows.
What return percentage to use
- 10–11%: realistic 20-year average for diversified Indian equity mutual funds (Nifty 50 / index funds).
- 12–14%: historical 20-year return for active large-cap and flexi-cap funds — assumes good selection.
- 7–8%: debt funds, conservative hybrid, PPF.
- 15%+: small-cap / mid-cap historical, but with much higher volatility — don't plan retirement on this.
Use 11–12% as the base case for long-term equity SIPs. Run the same plan again at 8% to see your downside if markets disappoint — it's a sobering exercise.
When to use this vs the other SIP tools
- This page — pure SIP or step-up SIP. Pick this if you're starting fresh with monthly investments and want to model a salary-linked annual increase.
- Lumpsum + SIP combo — pick this if you already have a corpus (bonus, inheritance, EPF maturity) to deploy alongside monthly SIPs.
- SWP calculator — for the withdrawal phase after retirement.
- XIRR calculator — to compute your actual realised return after a few years of running SIPs with irregular timing.
SIP and Indian tax
Equity mutual fund gains beyond ₹1.25 lakh per year are taxed at 12.5% LTCG (held over 12 months) under the post-July-2024 rules. STCG (under 12 months) is taxed at 20%. Debt fund gains are taxed at your slab rate from April 2023 onwards. Treat SIPs as a retirement-grade plan — don't churn for short-term wins.
FAQ
What return rate should I assume?
For Nifty 50 / index funds: 11-12% long-term. Active funds historically 12-14% but with manager risk. Conservative planning: use 10%, see the downside; aggressive: 15% (small/midcap).
Is step-up SIP worth it?
Yes — even 10% step-up nearly doubles your final corpus over 20 years. Aligns with how salaries grow naturally. Doable for most working professionals.
Lump sum or SIP — which wins?
Lump sum at start beats staggered ~70% of the time over long horizons (markets trend up). SIP wins emotionally — easier to start, no timing pressure. Combine both for goals.