SIP Calculator
Estimate your Systematic Investment Plan returns with live slider inputs
tuneAdjust Inputs
Maturity Value
₹11,61,695
≈ 11.6 Lakh
Wealth Gained
₹5,61,695
Wealth Ratio: 1.94×
Total Invested
₹6,00,000
51.7% of maturity
Est. Returns
₹5,61,695
93.6% gain
Monthly SIP
₹5,000
Per month
Investment Period
10 yrs (120 mo)
@ 12% p.a.
Returns
48.3%
Invested
₹6,00,000
Returns
₹5,61,695
functions SIP Formula
M = P × [(1+r)ⁿ − 1] / r × (1+r)
P = Monthly SIP | r = Monthly rate | n = Total months
What is a SIP Calculator?
A Systematic Investment Plan (SIP) lets you invest a fixed amount in mutual funds every month. Over time, compounding turns small regular investments into significant wealth — ideal for long-term goals like retirement or buying a home.
This calculator estimates the maturity value of your SIP based on monthly investment, expected annual return, and investment tenure using the compound interest formula for periodic payments.
lightbulb Example Calculation
Scenario: Mr. Ankit Joshi, 26-year-old software developer at HCL, Pune — invests ₹5,000/month in a Nifty 50 index fund SIP expecting 12% annual return over 10 years to build a down payment corpus
1Monthly rate r = 12% ÷ 12 = 1% = 0.01
2Maturity = 5000 × [((1.01)^120 − 1) / 0.01] × 1.01
3Total invested = 5,000 × 120 = ₹6,00,000
✓ Ankit's SIP grows to ₹11.62 Lakhs — ₹5.62 Lakhs wealth gain on ₹6 Lakh invested (wealth ratio 1.94×)
help_outlineHow to Use the SIP Calculator
- Drag the Monthly SIP Amount slider or type directly — the maturity value updates instantly.
- Set the Expected Annual Return — use 10–12% for diversified equity funds and 7–8% for debt/hybrid funds.
- Adjust Investment Period — the longer the tenure, the more dramatically compounding works in your favour.
- Tap a Step-up % chip to model annual SIP increases as your income grows (10% is widely recommended).
- All results update live — compare different scenarios by adjusting sliders without clicking anything.
Benefits
- Builds long-term wealth through small, regular monthly investments
- Rupee cost averaging reduces the impact of market volatility — you buy more units when prices fall
- Power of compounding amplifies returns dramatically over 10+ year horizons
- Step-up SIP aligns your investments with annual salary increments
- Fully flexible — pause, increase, or stop anytime with no exit penalty on most funds
Key Terms
- SIP (Systematic Investment Plan)
- A method of investing a fixed amount regularly in a mutual fund scheme, processed automatically on a set date each month.
- NAV (Net Asset Value)
- The price per unit of a mutual fund on a given day. SIP buys more units when NAV is low and fewer when high — this is rupee cost averaging.
- Wealth Gain
- The returns earned above the total amount you invested over the entire tenure.
- Wealth Ratio
- Maturity value ÷ total invested. A ratio of 2× means your money has doubled.
- Step-up SIP
- An option to increase your monthly SIP by a fixed percentage each year, compounding your wealth far faster over time.
quizFrequently Asked Questions
What is the minimum SIP amount I can start with?
SEBI mandates a minimum of ₹100 per installment, but most AMCs set a practical minimum of ₹500. You can start with ₹500 and use a step-up plan to grow your investment as your income increases.
Is SIP better than a Fixed Deposit?
For 5+ year goals, equity SIPs have historically delivered 12–14% CAGR versus FD's 6–8%. However, SIPs carry market risk while FDs guarantee returns. Use SIP for long-term wealth creation and FD for short-term, risk-free savings.
What return rate should I enter in the calculator?
Use 10–12% for large-cap equity funds, 12–15% for mid/small-cap funds, and 7–8% for debt funds. These are based on 10-year historical averages. Remember, past returns do not guarantee future performance.
Can I pause or stop my SIP anytime?
Yes. Most AMCs allow a SIP pause for 1–3 months without cancellation. You can stop anytime with no penalty — except for ELSS tax-saving funds, where each SIP installment has a 3-year lock-in period.
Does the SIP calculator account for taxes?
No. Long-term capital gains (LTCG) above ₹1.25 lakh per year are taxed at 12.5% for equity mutual funds. Your actual post-tax maturity value will be slightly lower than the figure shown.
What is the difference between SIP and a lump sum investment?
Lump sum works best when markets are at a cyclical low — you invest all at once. SIP is better for salaried individuals as it automates monthly investing without timing the market. Many experts recommend combining both approaches for optimal results.
Types of SIP
Choose the SIP variant that matches your income pattern and investment goal
📅
Regular SIP
Fixed amount invested every month on a chosen date. The most common and beginner-friendly variant — just set it and forget it.
Most Popular
📈
Step-up SIP
SIP amount increases by a fixed % each year (e.g. 10%). Ideal for salaried investors whose income grows annually — dramatically boosts final corpus.
Recommended
🔄
Flexible SIP
You can vary the installment amount each month — invest more when markets fall and less when they rally. Requires active monitoring.
Active
⚡
Trigger SIP
SIP activates only when a pre-defined market event occurs — e.g., Nifty drops 2% in a day. Suited for experienced investors with market knowledge.
Advanced
♾️
Perpetual SIP
No end date — the SIP runs indefinitely until you explicitly stop it. Perfect if you want to invest indefinitely without worrying about renewal.
Long-term
🗂️
Multi SIP
One SIP instruction splits your investment across multiple mutual fund schemes automatically — diversify with a single mandate.
Diversified
Tax Implications on SIP Investment
Each SIP installment is treated as a separate investment — taxes apply per unit's holding period (FIFO rule)
Equity & ELSS SIP
Equity Funds
- Units held < 12 months → STCG at 20%
- Units held ≥ 12 months → LTCG at 12.5% on gains above ₹1.25 lakh/year
- ELSS SIP: 3-year lock-in per installment; 80C deduction up to ₹1.5 lakh/year
Debt & Hybrid SIP
Debt Funds
- After April 2023 budget: gains taxed at your income slab rate regardless of holding period
- No LTCG benefit for debt funds — indexation also removed
- Hybrid funds with >65% equity are taxed like equity funds
FIFO Rule Explained
Key Concept
When you redeem, units bought first are sold first. For a 3-year SIP, units from month 1 have the longest holding (LTCG eligible), while units from month 36 have zero holding (STCG). Always plan redemption date to maximise LTCG benefit.
💡 Tax-saving tip: To qualify for LTCG (12.5%) on all your SIP units, wait at least 12 months after your last installment before redeeming. For a 10-year SIP, your last instalment matures for LTCG purposes 12 months after you stop investing. This one year of patience can save significant tax on large corpora.
8 Mistakes to Avoid in SIP
Small behavioural mistakes cost more than market downturns — avoid these to protect your wealth
1
Stopping SIP during a market crash
A crash is the best time to buy — you accumulate more units at low NAV. Stopping locks in losses and misses the recovery. SIP's power lies in riding downturns, not fleeing them.
2
Investing without a goal or timeline
Without a goal (retirement, home, education), you cannot determine the right amount, tenure, or fund type. Define your goal before picking any SIP — use this calculator to reverse-engineer the SIP needed.
3
Ignoring the expense ratio
A fund with 1.5% expense ratio vs 0.2% direct plan — on a ₹10,000/month SIP over 20 years at 12%, that 1.3% difference costs you over ₹18 lakh. Always invest via direct plans.
4
Not increasing SIP with salary increments
A static ₹5,000 SIP for 20 years gives ₹49.9L at 12%. A 10% step-up SIP starting at ₹5,000 gives ₹1.75 Crore — 3.5× more wealth. Use the step-up chips above to see the difference.
5
Over-diversifying across too many funds
5 large-cap funds in your portfolio are not safer than 1 — they all hold Reliance, Infosys, and TCS. Stick to 3–4 well-chosen funds across categories: one large-cap index, one flexi-cap, and one mid-cap.
6
Choosing IDCW (dividend) over Growth option
Dividends are paid from your own NAV, reducing compounding. They are also taxed as income at your slab rate. Always choose the Growth option — let the compounding work uninterrupted.
7
Starting SIP without an emergency fund
If a medical emergency hits and you have no cash reserve, you'll be forced to redeem early — often at a loss. Build 3–6 months of expenses in an FD or liquid fund before starting equity SIPs.
8
Trying to time the market for SIP start
SIP is specifically designed to eliminate market timing. Waiting for a "dip" to start means losing months of investment. The best time to start a SIP was yesterday — the second best is today.
More SIP Questions Answered
Practical questions on pausing, transferring, NRI investing, and more
Can I transfer my SIP to a relative or family member?
No. A SIP cannot be directly transferred to another person because mutual fund units are non-transferable in India. However, you can nominate a family member who automatically receives the units on your death. Alternatively, the relative can start their own SIP. You may redeem and gift cash to them, which they can invest in their own folio.
What happens if my SIP payment bounces?
If your bank account has insufficient funds, the SIP installment for that month is skipped — no units are allotted and no penalty is charged by the AMC. However, your bank may charge a dishonour fee (typically ₹250–₹500). Most AMCs allow 2–3 consecutive bounces before auto-cancelling the SIP mandate, so ensure your account always has sufficient balance 2 days before the SIP date.
How do I pause my SIP without cancelling it?
Log in to your AMC app or platform (Groww, Zerodha Coin, MF Central etc.) and look for "Pause SIP" or "SIP Freeze" option. Most AMCs allow a pause of 1–3 months by submitting the request at least 7–10 business days before the next debit date. After the pause period, the SIP resumes automatically without any new registration.
Can I resume a SIP that I have already cancelled?
Once cancelled, a SIP mandate cannot be restarted — you need to register a fresh SIP in the same fund. Your existing units are unaffected and remain invested. Registration takes 21–30 days to activate, so plan ahead if you want to restart. Consider pausing instead of cancelling to avoid this hassle.
Can I increase or decrease my SIP amount mid-way?
You cannot modify an existing SIP amount directly. The standard approach is to cancel the current SIP and register a new one with the revised amount. Some AMCs (like SBI MF) now offer an "SIP Modification" feature. A simpler workaround: register an additional SIP in the same fund for the incremental amount, so both run in parallel.
Can I change my SIP date?
Most AMCs allow SIP dates of 1st, 5th, 7th, 10th, 15th, 20th, or 25th of each month. To change, cancel the existing SIP and start a new one on your preferred date. Some platforms like Groww allow in-app date changes. Note that the new SIP must be submitted 10–15 business days before the new debit date to take effect.
Can NRIs invest in mutual funds via SIP in India?
Yes. NRIs can invest in Indian mutual funds via SIP using their NRE (repatriable) or NRO (non-repatriable) bank accounts linked to their folio. SIP auto-debit must be set up from an Indian NRE/NRO account. Note: US/Canada residents face restrictions due to FATCA compliance — many AMCs do not accept investments from these countries.
Is SIP safe for a complete beginner?
SIP is one of the safest ways to begin investing in markets, because: (1) you invest small amounts monthly — no lump-sum risk, (2) rupee cost averaging smooths out volatility, (3) you can start with just ₹500/month, and (4) you can stop anytime without penalty. Begin with a Nifty 50 or Nifty 100 index fund — lowest cost, market-matching returns, zero fund manager risk.
What is the difference between Growth and IDCW option?
In the Growth option, all profits are reinvested back into the fund — your NAV grows with compounding. In the IDCW (Income Distribution cum Capital Withdrawal) option, the fund periodically distributes some profits as "dividend." However, this dividend comes from your own NAV, reducing it — and it is taxed as ordinary income at your slab rate. For SIP investors with 5+ year goals, Growth is almost always the better choice.
How does ELSS SIP save tax?
ELSS (Equity Linked Savings Scheme) SIPs qualify for deduction under Section 80C up to ₹1.5 lakh per financial year, potentially saving ₹46,800/year if you are in the 31.2% tax bracket. Each SIP installment has an individual 3-year lock-in — so in a monthly SIP, the last installment of year 1 unlocks at the end of year 4. Gains above ₹1.25 lakh after redemption are taxed at 12.5% LTCG.
What is a perpetual SIP and should I choose it?
A perpetual SIP has no end date — it runs until you manually cancel or pause it. This is useful if you do not have a fixed goal date and want to invest indefinitely. However, be mindful: if you forget to cancel, it continues auto-debiting. Most financial planners recommend setting a tenure that matches your investment goal (e.g., retirement date) so you review and rebalance on schedule.