SIP calculator

Enter a monthly amount, a number of years and a return you want to assume. The calculator shows what the SIP could grow to and how much of that is your own money.

How it is calculated

Each instalment is invested at the start of the month and grows every month at the monthly equivalent of the yearly return: (1 + r)^1/12 − 1, so 12% a year is 0.949% a month, not 1%. For a fixed SIP this gives FV = P × [((1 + i)ⁿ − 1) / i] × (1 + i), where P is the monthly amount, i the monthly rate and n the number of months. A step-up raises the instalment once a year.

Worked example

Test a SIP on real fund NAVs

Common questions

How is SIP return calculated?

With monthly compounding: each instalment grows every month at the monthly equivalent of the yearly return, (1 + r)^(1/12) − 1. A fixed SIP's value is P × [((1 + i)^n − 1) / i] × (1 + i).

What return should I assume for an equity SIP?

No return is guaranteed. As a reference from real data, a ₹10,000 monthly SIP over the last 10 years in the middle-ranked flexi cap fund grew at about 13% a year; large cap funds about 11%. Past returns may not repeat; a lower assumption is the safer plan.

What is a step-up SIP?

A SIP whose instalment rises once a year, for example by 10%, usually in line with income. It shortens the time needed to reach a goal.

Is a SIP better than a lump sum?

A lump sum invested at once grows for longer, so it often ends higher in rising markets. A SIP spreads the buying over time, which lowers the risk of investing everything at a market high and suits monthly income.

Illustrations only, not investment or tax advice. Mutual fund returns are not guaranteed and can be negative; the assumed return is yours to choose. Talk to us before acting on a tax estimate.

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