SIP Calculator

A Systematic Investment Plan, or SIP, lets you invest a fixed amount in a mutual fund every month. Instead of timing the market, you spread your investment across years — buying more units when prices are low and fewer when prices are high. This rupee-cost averaging smooths out volatility and removes the emotional pressure of large lump-sum decisions.

The reason SIPs are so powerful is compounding. When your returns earn their own returns over decades, the curve bends sharply upward toward the end. A ₹10,000 monthly SIP at 12% average annual return becomes roughly ₹35 lakh in 15 years, ₹1 crore in 20 years, and over ₹3 crore in 25 years — even though the principal contribution is only ₹30 lakh across that 25-year window. Most of the wealth is created by the gains, not the deposits.

The standard SIP formula used here is FV = P × ((1+r)n − 1) / r × (1+r), where P is the monthly investment, r is the monthly return rate, and n is the number of months. We assume deposits at the start of each month (annuity due), which matches how Indian mutual fund SIP debits typically settle.

Use the Step-Up SIP toggle if you expect your investment capacity to grow each year — for example, alongside annual salary hikes. Even a 10% annual step-up on a 20-year SIP can add tens of lakhs to your final corpus without feeling painful, because the increment scales with your income. SIPs in equity mutual funds also benefit from long-term capital gains tax treatment in India: gains above ₹1.25 lakh per financial year are taxed at 12.5%, far gentler than your slab rate. Choose direct plans for lower expense ratios, link the SIP to a clear goal (retirement, child's education, home down payment), and avoid pausing during market dips — those are precisely the months that lift your final returns.