SIP Returns Calculator
Power of compounding
Your money grows ~2.8× over 15 years. Start early — even a 5-year head start can double your final corpus.
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How SIP returns are calculated
A Systematic Investment Plan (SIP) uses the future value of an annuity formula, compounding monthly:
Worked example: ₹5,000 per month for 10 years
At an assumed 12% annual return (i = 0.01 per month, n = 120), a ₹5,000 monthly SIP grows to about ₹11.6 lakh — you invest ₹6 lakh and compounding adds ₹5.6 lakh. Extend the same SIP to 20 years and the corpus jumps to roughly ₹50 lakh, of which you contributed only ₹12 lakh. That non-linear jump is why tenure is the most powerful variable in SIP planning.
How much SIP is needed for ₹1 crore?
Working backwards from the same formula at 12%: about ₹10,000/month for 20 years, ₹4,300/month for 25 years, or just ₹1,600/month if you start at age 25 and retire at 60. The earlier you start, the smaller the monthly cheque — time does most of the heavy lifting. Try these figures in the calculator above to see the exact numbers.
SIP vs lumpsum — which is better?
A lumpsum investment can win in a steadily rising market because all your money compounds from day one, but a SIP averages your entry cost across market highs and lows (rupee-cost averaging), removes timing anxiety, and matches how salaried investors actually receive income. For most people investing from a monthly salary, SIP is the natural default. Compare both paths side by side with the FD vs Mutual Fund comparison or read EMI vs SIP: which should come first?
SIP tips that actually move the needle
- Start now, not later. ₹10,000/month for 25 years beats ₹20,000/month for 12.
- Step up yearly by 8–10% (matching salary hikes) — this alone can add 40%+ to your corpus.
- 12% is a reasonable long-term equity assumption — don't plan on 20%+.
- Stay invested through dips. That's literally when you buy more units cheaply.
How this calculator works
This tool applies the standard monthly-compounding annuity formula used across the Indian mutual-fund industry, with an optional annual step-up mode. Returns shown are illustrative projections, not guarantees; actual mutual-fund returns vary with market performance. All math runs instantly in your browser — no login, no data stored. Content reviewed and updated for 2026.
Related guides: PPF Calculator guide · How expense ratio eats your returns · Compound Interest Calculator · Retirement Calculator
Frequently asked questions
What is a SIP?
A Systematic Investment Plan lets you invest a fixed amount in mutual funds every month, averaging your purchase cost and benefiting from compounding.
If I invest ₹5,000 per month in SIP for 10 years, how much will I get?
At an assumed 12% annual return, a ₹5,000 monthly SIP for 10 years grows to roughly ₹11.6 lakh, of which ₹6 lakh is your own investment. At a more conservative 10%, expect about ₹10.3 lakh. Run your exact scenario in the calculator above.
How much SIP do I need to build ₹1 crore?
At 12% assumed return: about ₹10,000/month over 20 years, or ₹4,300/month over 25 years. Starting early reduces the required monthly amount dramatically.
Is 12% return realistic?
12% is a commonly used long-term assumption for diversified equity mutual funds in India. Past performance doesn't guarantee future returns — use 10–12% for planning.
What is a step-up SIP?
Step-up SIP increases your monthly contribution every year (usually with your salary hike). It dramatically boosts your final corpus without straining you early on.
SIP vs lumpsum — which gives better returns?
Lumpsum can outperform in a consistently rising market, but SIP spreads your entry across market cycles (rupee-cost averaging), which suits salaried investors and reduces timing risk. Many investors combine both.
Are SIP returns taxable?
Equity mutual-fund gains are taxed as capital gains when you redeem (LTCG 12.5% on gains above ₹1.25 lakh per year for units held over 12 months, as per Finance Act 2024). SIP redemptions follow first-in-first-out, so your earliest instalments qualify for long-term treatment first.
Are SIP returns guaranteed?
No. SIP returns depend on market performance. Over 7–10+ years, equity SIPs have historically delivered healthy returns, but they are not guaranteed.
How much should I invest monthly?
A common rule: save at least 20% of your income. Use our Retirement Calculator to find the corpus you need, then work backwards.