What is SIP Calculator?

A SIP calculator is a free online tool that estimates the maturity amount you can expect when investing a fixed monthly amount in mutual funds via SIP. It uses the formula M = P × ({[1 + i]^n – 1} / i) × (1 + i) where i is the monthly rate calculated as (1+annual_rate)^(1/12) – 1.

What is the correct SIP formula?

M = P × ({[1 + i]^n – 1} / i) × (1 + i) where M = maturity amount, P = monthly investment, n = number of months, i = monthly rate = (1 + annual rate)^(1/12) – 1. Note: using annual_rate/12 is incorrect as it ignores compounding.

Is SIP better than FD?

For long-term goals (7+ years), equity SIPs have historically returned 10–15% p.a. vs FD's 6–7%. SIPs beat inflation and offer higher post-tax returns. FDs are better for capital protection and short-term needs.

What return can I expect from SIP?

Large cap equity SIPs: 10–12% p.a. over 10 years. Mid cap: 13–16%. Small cap: 15–18% (higher risk). Debt funds: 6–8%. Use 10–12% as a conservative estimate for long-term planning.

Can I stop SIP anytime?

Yes. You can stop, pause, or modify your SIP anytime. Simply submit a cancellation through your broker (Groww, Zerodha, Paytm Money, etc.). No penalty applies. Your invested units remain in the fund.

🏆 India's #1 Free SIP Calculator

SIP Calculator –
Calculate Mutual Fund Returns Instantly

Plan your investments & see future wealth growth in seconds. Uses the correct AMFI-standard compounding formula — not the approximation other calculators use.

✓ AMFI-Standard Formula

⚡ Instant Results

📊 Growth Chart

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🧮 SIP Calculator

Monthly Investment₹5,000

₹

₹500₹1L

Expected Return (% p.a.)12%

1%30%

Time Period (Years)10 yrs

1 yr40 yrs

Inflation-Adjusted Returns (6% p.a.)

💰 Invested

₹0

📈 Returns

₹0

🏆 Total Value

₹0

* Inflation-adjusted values at 6% p.a.

Returns0%

Invested—

Returns—

Total—

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SIP Examples

See What Your SIP Can Become

Based on historical 12% p.a. returns. Click any example to try it.

₹1,000/mo10 yrs · 12%

Invested₹1.20 L

Returns₹1.12 L

Total Value₹2.32 L

₹5,000/mo15 yrs · 12%

Invested₹9.00 L

Returns₹16.2 L

Total Value₹25.2 L

₹10,000/mo20 yrs · 12%

Invested₹24.0 L

Returns₹75.9 L

Total Value₹99.9 L

₹500/mo30 yrs · 12%

Invested₹1.80 L

Returns₹14.7 L

Total Value₹16.5 L

₹25,000/mo15 yrs · 10%

Invested₹45.0 L

Returns₹57.2 L

Total Value₹1.02 Cr

₹2,000/mo25 yrs · 14%

Invested₹6.00 L

Returns₹72.8 L

Total Value₹78.8 L

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🌱 Groww ⚡ Zerodha 📊 Upstox

Why Invest via SIP

Benefits of SIP Investment

🔄

Power of Compounding

Returns earn returns. ₹1,000/month at 12% for 20 years = ₹9.9L from just ₹2.4L invested — 4x growth!

🌱

Start with ₹500

No wealth required. Start investing as little as ₹500/month and build wealth over decades.

📉

Rupee Cost Averaging

When markets fall, you buy more units. When they rise, existing units gain value. Market timing becomes irrelevant.

💸

Tax Savings (ELSS)

ELSS SIPs save up to ₹46,800/year in taxes under Section 80C while earning 12–15% returns.

Understanding SIP

SIP Calculator – Systematic Investment Plan Explained

📌 What is a SIP Calculator?

A SIP calculator is a simple online tool that allows individuals to estimate the returns on their mutual fund investments made through a Systematic Investment Plan (SIP). SIP investments have become one of the most popular investment options for Indian millennials due to their simplicity and compounding benefits.

Many investors confuse SIPs with mutual funds — SIP is simply a method of investing in mutual funds (the other being lump sum). This calculator shows you the maturity amount for any monthly SIP based on a projected annual return rate.

⚠️ The calculator does not account for exit loads or expense ratios. Actual returns depend on market conditions.

⚙️ How SIP Calculator Works — The Correct Formula

M = P × ({[1 + i]^n – 1} / i) × (1 + i)

M = Maturity amount
P = Monthly SIP amount
n = Number of months (years × 12)
i = Monthly rate (see below — NOT annual÷12)

⚠️ The Right Way to Calculate Monthly Rate

❌ Wrong Method

i = Annual Rate / 12

12% / 12 = 1.0%/mo
INFLATES results

✅ Correct (We Use)

i = (1 + r)^(1/12) − 1

12% → 0.9489%/mo
ACCURATE results

Example: ₹1,000/month at 12% for 12 months = ₹12,766 (using correct formula).

Parameter	SIP (Equity MF)	Fixed Deposit	PPF
Returns (p.a.)	10–15%	6.5–7.5%	7.1%
Beats Inflation?	✅ Yes	❌ Barely	❌ Marginally
Tax on Gains	10% LTCG after ₹1L	Slab rate	Tax-Free
Min Investment	₹500/month	₹1,000 lump	₹500/year
Liquidity	High (T+3)	Penalty on exit	15-yr lock-in
Risk	Market-linked	Zero	Zero (Govt.)
Ideal For	Long-term wealth	Safety / FD	Tax saving + safety

FAQ

Frequently Asked Questions About SIP

Everything you need to know about SIP investing in India

What is SIP (Systematic Investment Plan)?▼

SIP (Systematic Investment Plan) is a method of investing a fixed amount in mutual funds at regular intervals — usually monthly. It enables disciplined investing by auto-debiting your bank account on a set date. You receive mutual fund units at the current NAV. Over time, compounding and rupee cost averaging multiply your wealth. SEBI-regulated and transparent, SIP is the most popular way for Indian retail investors to build wealth.

What is the SIP formula used in this calculator?▼

This calculator uses the correct AMFI-standard formula: M = P × ({[1 + i]^n – 1} / i) × (1 + i), where i = (1 + annual_rate)^(1/12) – 1 (monthly compounding rate). Many calculators incorrectly use annual_rate/12 which overstates returns. For 12% annual return, the correct monthly rate is 0.9489%, NOT 1.0%.

What return can I realistically expect from SIP?▼

Based on historical data: Large Cap Equity Funds: 10–12% p.a. | Mid Cap: 13–16% | Small Cap: 15–18% (higher risk) | Hybrid Funds: 9–11% | Debt Funds: 6–8% | ELSS: 12–15%. For long-term planning, financial advisors use 10–12% as a conservative estimate. Past performance does not guarantee future results.

Can I withdraw my SIP anytime?▼

Yes. Open-ended mutual funds allow redemption anytime. Money is credited in 3–5 business days (T+3 equity, T+1 liquid). Exception: ELSS has a mandatory 3-year lock-in per installment. You can stop SIP anytime without penalty — just submit a cancellation request through your broker or AMC. Your accumulated units remain invested.

Can I pause my SIP?▼

Yes. Most AMCs and platforms (Groww, Zerodha, Paytm Money) allow SIP pause for 1–6 months without penalty. No deductions during pause, existing units remain in the fund. After the pause, SIP resumes automatically. This is useful during job transitions or financial emergencies.

What are the types of SIP?▼

1. Regular SIP — Fixed monthly amount. 2. Step-up SIP — Annual increment (e.g., +10% each year). 3. Flexible SIP — Variable amounts. 4. Perpetual SIP — No end date. 5. Trigger SIP — Based on market conditions. Step-up SIP is the most powerful — a ₹5,000/month SIP with 10% annual step-up grows significantly faster than a flat SIP.

Is SIP safe? What are the risks?▼

SIP in equity mutual funds is subject to market risk — short-term value can fluctuate. However, diversified funds spread money across 50–100 stocks, reducing concentration risk. SEBI strictly regulates all mutual funds. Long-term SIPs (7+ years) have historically delivered 10–14% p.a. The key to safety: stay invested long-term, choose SEBI-registered funds, and don't panic during market corrections.

What is the minimum and maximum tenure of a SIP?▼

Minimum: Most funds accept SIPs for as short as 6 months (some even 3 months). Maximum: No upper limit. You can choose a "perpetual SIP" with no end date, which continues until you cancel it. Longer duration SIPs benefit more from compounding — a 30-year SIP at 12% creates exponentially more wealth than three 10-year SIPs.

SIP Calculator –
Calculate Mutual Fund Returns Instantly

🧮 SIP Calculator

Year-by-Year Investment Growth

See What Your SIP Can Become

Benefits of SIP Investment

Power of Compounding

Start with ₹500

Rupee Cost Averaging

Tax Savings (ELSS)

SIP Calculator – Systematic Investment Plan Explained

📌 What is a SIP Calculator?

⚙️ How SIP Calculator Works — The Correct Formula

⚠️ The Right Way to Calculate Monthly Rate

SIP vs FD vs PPF — Which is Best?

Frequently Asked Questions About SIP

Get Free Personalized SIP Plan

SIP Calculator –Calculate Mutual Fund Returns Instantly

🧮 SIP Calculator

Year-by-Year Investment Growth

See What Your SIP Can Become

Benefits of SIP Investment

Power of Compounding

Start with ₹500

Rupee Cost Averaging

Tax Savings (ELSS)

SIP Calculator – Systematic Investment Plan Explained

📌 What is a SIP Calculator?

⚙️ How SIP Calculator Works — The Correct Formula

⚠️ The Right Way to Calculate Monthly Rate

SIP vs FD vs PPF — Which is Best?

Frequently Asked Questions About SIP

Get Free Personalized SIP Plan

SIP Calculator –
Calculate Mutual Fund Returns Instantly