SIP Calculator — Estimate Your Mutual Fund SIP Returns
See what your monthly SIP could grow into. Enter your monthly investment, expected annual return and tenure to estimate the maturity value, total invested and potential gains.
Estimated maturity value
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Total invested
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Estimated gains
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Year-wise growth
Invested amount vs estimated gains, year by year.
How a SIP works
A Systematic Investment Plan (SIP) invests a fixed amount in a mutual fund every month. Each instalment buys units at the prevailing NAV (net asset value), so you automatically buy more units when markets fall and fewer when they rise — this is called rupee cost averaging. Over years, the twin effects of regular investing and compounding can build significant wealth from modest monthly amounts.
The SIP formula
This calculator uses the standard future value of a monthly annuity (investments assumed at the start of each month):
FV = P × [((1 + i)ⁿ − 1) / i] × (1 + i)
Here P is the monthly investment, i is the monthly return (annual return ÷ 12 ÷ 100), and n is the total number of monthly instalments (years × 12). "Estimated gains" is simply the maturity value minus everything you invested.
Worked example
Suppose you invest ₹10,000 per month for 10 years at an expected 12% per annum. The monthly rate i = 0.01 and n = 120 instalments:
FV = 10,000 × [((1.01)¹²⁰ − 1) / 0.01] × 1.01 ≈ ₹23.23 lakh
You invested ₹12 lakh (10,000 × 120), so the estimated gains are about ₹11.23 lakh — nearly as much as your total investment, thanks to compounding over a decade.
Things to keep in mind
- Returns are estimates, not guarantees. Mutual funds are market-linked; actual returns swing with the market. Run the calculator at 8%, 10% and 12% to see a realistic range.
- Tenure matters more than timing. Extending a SIP from 10 to 15 years typically adds more wealth than raising the monthly amount, because compounding accelerates late in the journey.
- Step-up SIPs grow faster. Increasing your SIP by 10% every year (a step-up SIP) can add 30–40% to the final corpus versus a flat SIP.
- Tax on withdrawal. Equity fund gains on units held over 12 months are taxed at 12.5% LTCG above ₹1.25 lakh per year; units sold within 12 months face 20% STCG. Debt fund gains are taxed at your slab rate.
- Costs. Funds charge an expense ratio (typically 0.1–2% per year) which is already reflected in the NAV, so the return you enter should be net of expenses.
SIP Calculator FAQs
What is a good expected return to use in a SIP calculator?
For long-term equity mutual fund SIPs, 10–12% per annum is the figure most financial planners use for estimates, based on long-run Indian equity performance. Use a lower figure like 8–10% for conservative planning, and remember that no return is guaranteed.
Does a SIP guarantee returns?
No. A SIP is just a way of investing — the money goes into market-linked mutual funds, so returns move with the market. This calculator shows what your investment could grow to at the assumed return; actual results can be higher or lower.
How are SIP returns taxed in India?
For equity mutual funds, gains on units held up to 12 months are taxed as short-term capital gains (STCG) at 20%. Gains on units held longer than 12 months are long-term capital gains (LTCG), taxed at 12.5% on gains above ₹1.25 lakh in a financial year. Debt fund gains are taxed at your income slab rate.
Can I pause or stop my SIP?
Yes. Most fund houses let you pause a SIP for a few months or stop it entirely at no charge. Your existing units stay invested and keep growing — stopping only ends future instalments. Note that ELSS tax-saving funds have a 3-year lock-in on every instalment.
Is SIP better than a lump sum investment?
A SIP suits salaried investors who invest from monthly income and removes the stress of timing the market. A lump sum can do better if markets rise steadily right after you invest, but it carries higher timing risk. Many investors combine both approaches.
What is rupee cost averaging?
With a fixed monthly SIP, you automatically buy more mutual fund units when the NAV is low and fewer units when it is high. Over time this averages out your purchase cost per unit — the core benefit of investing through a SIP instead of timing lump sums.