SIP Calculator
See how systematic monthly investments compound over time. Adjust for inflation to understand the real purchasing power of your future corpus.
Total Invested
₹60,000
Est. Returns
₹21,104
Final Value
₹81,104
Investment Breakdown
SIP Calculator – Plan Your Mutual Fund SIP Returns
What is a SIP Calculator?
A SIP (Systematic Investment Plan) calculator helps you estimate the future value of your monthly mutual fund investments. By entering your monthly investment amount, expected annual return rate, and investment duration, you can instantly see how much wealth your SIP can build over time.
SIP investing is one of the most disciplined ways to build long-term wealth in India. Instead of timing the market, you invest a fixed amount every month, benefiting from rupee cost averaging and the power of compounding.
How Does the SIP Calculator Work?
The SIP calculator uses the future value of an annuity formula: FV = P × [((1 + r)ⁿ − 1) / r] × (1 + r), where P is your monthly investment, r is the monthly rate of return (annual rate ÷ 12), and n is the total number of months. This formula accounts for the fact that each monthly installment compounds for the remaining tenure.
For example, if you invest ₹10,000 per month at 12% annual return for 10 years, your total invested amount would be ₹12,00,000, but the power of compounding grows your corpus to approximately ₹23,23,000 — nearly double your investment.
Why Adjust for Inflation?
A ₹20 lakh corpus in 10 years won't have the same purchasing power as ₹20 lakh today. Inflation is the rate at which the general price level of goods and services rises — governments measure it by tracking a weighted basket of hundreds of items (CPI). Our inflation adjustment shows you the real value of your future corpus by discounting it at the expected inflation rate.
The exact formula for purchasing power is: Real Value = Future Value ÷ (1 + Inflation Rate)^Years. At 5% inflation over 10 years, ₹20 lakh would have a purchasing power of roughly ₹12.3 lakh in today's terms. Conversely, to maintain the same lifestyle 10 years later, you would need ₹20 lakh × (1.05)^10 = ₹32.6 lakh.
Important: your personal inflation may differ from official CPI. If you spend heavily on rent or education, your personal inflation could be higher than the headline rate.
Benefits of Using a SIP Calculator
Goal-based planning: Know exactly how much to invest monthly to reach your target corpus, whether it's for a home down payment, children's education, or retirement.
Visualise compounding: See the dramatic difference between your total investment and final value — compounding does the heavy lifting over long periods.
Compare scenarios: Adjust return rates and durations to understand best-case and conservative outcomes before committing your money.
Inflation awareness: Don't be misled by nominal returns. See the real purchasing power of your future wealth.
Frequently Asked Questions
No. SIP returns depend on market performance, especially for equity mutual funds. The calculator shows estimated returns based on your expected annual return rate, which is an assumption — not a guarantee. Past performance does not guarantee future results.
For equity mutual fund SIPs, a reasonable long-term expectation is 10–14% per annum. For debt or hybrid funds, 6–9% is more realistic. Always use conservative estimates for financial planning.
Yes, you can increase, decrease, or stop your SIP at any time. Many investors use a step-up SIP strategy, increasing their monthly amount by 10–15% each year to align with salary growth.
SIP invests a fixed amount monthly, spreading your entry across market highs and lows (rupee cost averaging). Lumpsum invests the entire amount at once. SIP is ideal for salaried investors; lumpsum suits those with a windfall like a bonus or inheritance.
Most mutual funds allow SIPs starting from ₹100–500 per month. This low entry point makes SIP accessible to almost everyone. Some popular funds like Nifty 50 index funds allow SIPs from ₹100, while mid-cap and small-cap funds may require ₹500–1,000 minimum.
For equity SIPs, a minimum of 5–7 years is recommended to ride out market cycles. The real power of compounding shows over 10+ years. Data shows that Nifty SIPs held for 15+ years have never given negative returns. Avoid stopping SIPs during market dips — that's when you accumulate more units at lower prices.
A step-up SIP automatically increases your monthly investment by a fixed percentage (usually 10%) or amount each year. This aligns with your salary growth and dramatically boosts your final corpus. For example, a ₹10,000/month SIP with 10% annual step-up at 12% returns builds roughly 40% more corpus than a flat SIP over 15 years.
Yes, most mutual funds allow you to pause SIP for 1–6 months without closing the account. This is useful during financial difficulties. You can resume anytime. Missing a few installments doesn't affect your existing units — they continue to grow.
They serve different purposes. SIPs in equity funds offer higher potential returns (10–14% historically) but with market risk and volatility. FDs offer guaranteed returns (6–7.5%) with no risk. Use SIPs for long-term goals (7+ years) and FDs for short-term needs and emergency funds.
For equity mutual fund SIPs, gains on units held over 1 year are long-term capital gains (LTCG) taxed at 12.5% above ₹1.25 lakh/year. Units held less than 1 year attract short-term capital gains (STCG) tax at 20%. For debt funds, all gains are taxed at your income slab rate regardless of holding period.