Free SIP Calculator — Plan Your Mutual Fund Investments
Calculate projected SIP returns instantly. Enter your monthly amount, expected return, and duration to see your total corpus, year-wise growth, and estimated wealth created.
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SIP Details
Projected Returns
Total Invested
₹12,00,000.00
Estimated Returns
₹11,23,391.00
+94% on invested amount
Total Corpus
₹23,23,391.00
Year-wise Growth
| Year | Invested | Returns | Total Value |
|---|---|---|---|
| 1 | ₹1,20,000.00 | ₹8,093.00 | ₹1,28,093.00 |
| 2 | ₹2,40,000.00 | ₹32,432.00 | ₹2,72,432.00 |
| 3 | ₹3,60,000.00 | ₹75,076.00 | ₹4,35,076.00 |
| 4 | ₹4,80,000.00 | ₹1,38,348.00 | ₹6,18,348.00 |
| 5 | ₹6,00,000.00 | ₹2,24,864.00 | ₹8,24,864.00 |
| 6 | ₹7,20,000.00 | ₹3,37,570.00 | ₹10,57,570.00 |
| 7 | ₹8,40,000.00 | ₹4,79,790.00 | ₹13,19,790.00 |
| 8 | ₹9,60,000.00 | ₹6,55,266.00 | ₹16,15,266.00 |
| 9 | ₹10,80,000.00 | ₹8,68,215.00 | ₹19,48,215.00 |
| 10 | ₹12,00,000.00 | ₹11,23,391.00 | ₹23,23,391.00 |
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How to Use This SIP Calculator
- 1Enter your monthly SIP amount — the fixed sum you plan to invest each month.
- 2Set the expected annual return rate. Use 10–12% for equity mutual funds as a conservative estimate.
- 3Select your investment duration in years. Longer tenures unlock the full power of compounding.
- 4View instant results — total invested, estimated returns, and total corpus.
- 5Scroll down to the year-wise table to track how your wealth grows at each milestone.
How SIP Returns are Calculated
SIP returns are calculated using the Future Value of a recurring annuity formula, which accounts for monthly compounding on each instalment:
M = P × {[(1 + r)ⁿ − 1] / r} × (1 + r)
M = Maturity Amount (Total Corpus)
P = Monthly SIP Amount
r = Monthly Interest Rate = Annual Rate ÷ 12 ÷ 100
n = Total Months = Years × 12
The (1 + r) multiplier at the end accounts for the fact that each instalment earns returns for the full month it is invested (beginning-of-period annuity). This is the industry-standard SIP calculation used by AMFI and most Indian financial calculators.
Rupee Cost Averaging
When markets fall, your fixed SIP amount buys more units. When markets rise, you buy fewer. Over time this averages your purchase cost, reducing the impact of market volatility compared to lump sum investing.
Power of Compounding
Each month's SIP instalment earns returns, and those returns earn further returns in subsequent months. This compounding effect accelerates wealth creation exponentially — the longer the tenure, the larger the gains relative to the amount invested.
Worked Example
₹10,000/month SIP for 10 years at 12% p.a.
| Monthly SIP | ₹10,000 |
| Annual Return | 12% p.a. |
| Monthly Rate (r) | 12 ÷ 12 ÷ 100 = 0.01 |
| Total Months (n) | 10 × 12 = 120 |
| Total Invested | ₹10,000 × 120 = ₹12,00,000 |
| Estimated Returns | ≈ ₹11,23,391 |
| Total Corpus | ≈ ₹23,23,391 |
On an investment of ₹12 lakhs, you earn ₹11.23 lakhs in returns — almost doubling your money over 10 years at 12% p.a.
Common SIP Mistakes to Avoid
Stopping SIPs during market crashes
Market downturns are actually ideal for SIP investors — you buy more units at lower prices. Stopping SIPs in a crash locks in losses and breaks the compounding cycle. Stay invested.
Using past returns as guaranteed future returns
A fund that returned 20% last year may return 8% next year. Use conservative projections (10–12% for equity) for long-term planning rather than peak historical returns.
Ignoring inflation in goal planning
A corpus of ₹1 crore in 20 years is not the same as ₹1 crore today. At 6% inflation, real purchasing power halves every 12 years. Factor in inflation when setting your target corpus.
Investing for too short a tenure
The power of compounding is exponential, not linear. The last few years of a long SIP create disproportionate wealth. A 10-year SIP at 12% returns 100% on invested amount; a 20-year SIP returns ~215% — not double, but triple the gain ratio.
Frequently Asked Questions
Q: What is a SIP (Systematic Investment Plan)?
A SIP is a method of investing a fixed amount in a mutual fund at regular intervals — typically monthly. Instead of investing a lump sum, you invest small amounts consistently, which helps average out the cost of purchase (rupee cost averaging) and benefit from compounding over time.
Q: What expected return rate should I use?
Historical large-cap equity mutual funds in India have delivered 10–14% CAGR over 10+ year periods. Small/mid-cap funds have delivered 12–18% but with higher volatility. For conservative planning, use 10–12%. The default 12% in this calculator is a reasonable middle-ground for long-term equity SIPs.
Q: Can I change my SIP amount later?
Yes. Most mutual funds allow you to increase, decrease, pause, or stop SIPs at any time. Many investors use "Step-Up SIP" where they increase the SIP amount by 10–15% every year aligned with salary increments — this significantly accelerates corpus building.
Q: Is the SIP return shown here guaranteed?
No. This calculator shows projected returns based on a fixed assumed annual rate. Actual mutual fund returns vary year to year and are not guaranteed. Equity funds may give negative returns in short periods but historically deliver positive returns over 7–10+ year horizons.
Q: What is the minimum SIP amount in India?
Most mutual funds accept SIPs starting from ₹500 per month. Some funds (especially direct plans) have minimums as low as ₹100. Platforms like Groww, Zerodha Coin, and Paytm Money allow ₹100 SIPs in select funds.
Q: How is SIP income taxed in India?
For equity mutual funds: gains from units held more than 12 months are Long Term Capital Gains (LTCG) taxed at 12.5% beyond ₹1.25 lakh per year (as of FY 2024-25). Units held less than 12 months attract Short Term Capital Gains (STCG) at 20%. Each SIP instalment is treated as a separate investment with its own holding period.
Q: What is the difference between SIP and lump sum investment?
SIP invests a fixed amount periodically, averaging your cost over market cycles (rupee cost averaging). Lump sum invests the full amount at once — better when markets are at a low, worse when at a high. SIP reduces timing risk and is better suited for salaried investors who receive regular income.
Q: What is XIRR and how is it different from the return rate I enter here?
XIRR (Extended Internal Rate of Return) is used to measure actual returns on irregular cash flows like SIPs. The return rate you enter in this calculator is an assumed annualised rate for projection purposes. Your actual XIRR will vary depending on market performance during your investment period.
Q: How does compounding work in SIP?
In a SIP, each monthly instalment earns returns, and those returns themselves earn further returns in subsequent periods — this is compounding. The longer the tenure, the more powerful the effect. For example, at 12% p.a. over 20 years, ₹10,000/month grows to over ₹99 lakh, while total invested is just ₹24 lakh — the remaining ₹75 lakh is pure compounding.
Q: What happens if I miss a SIP instalment?
Missing one or two instalments usually does not incur a penalty in most mutual funds — the fund simply skips that month. However, your bank may charge a failed ECS/NACH bounce fee (typically ₹200–500). Missing SIPs frequently disrupts the compounding effect. If you are short on funds, consider pausing the SIP instead of letting it bounce.
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