How to use: SIP calculator
- 1Enter how much you will invest every month.
- 2Enter an expected yearly return, for example 12% for a long-term equity fund estimate.
- 3Enter how many years you will keep investing.
- 4Optionally add a yearly step-up, then open the year-by-year table.
Example: ₹10,000 a month
At an assumed 12% a year:
| Years | You invest | Estimated value |
|---|---|---|
| 5 | ₹6 lakh | about ₹8.2 lakh |
| 10 | ₹12 lakh | about ₹23 lakh |
| 15 | ₹18 lakh | about ₹50 lakh |
| 20 | ₹24 lakh | about ₹1 crore |
The longer you stay invested, the larger the share of the final value that comes from returns rather than your own contributions. That is compounding at work.
Why step-up matters
A 10% yearly step-up on a ₹10,000 SIP means ₹11,000 a month in year two, ₹12,100 in year three, and so on. At 12% a year, that makes the final value about 1.7 times a flat SIP after 15 years and about twice as much after 20 years, because the larger instalments also compound.
Estimates are for illustration. Mutual fund investments are subject to market risks; past returns do not guarantee future results.
Frequently asked questions
How is SIP return calculated?
Each monthly instalment grows at the monthly rate (yearly return ÷ 12) until the end. The calculator assumes you invest at the start of each month, the convention most fund house calculators use.
What return should I assume?
Nobody can promise a return. Many people use 10–12% a year for diversified equity funds over 10+ years and 6–8% for debt funds, but actual returns can be higher, lower or negative in some years.
What is a step-up SIP?
A step-up SIP increases your monthly amount by a fixed percentage every year, for example 10%. Even small step-ups make a large difference over long periods.
Are SIP returns taxable?
Yes. Gains on mutual funds are taxed as capital gains when you redeem, at rates that depend on the fund type and holding period. This calculator shows pre-tax values.