How to use the SIP calculator
- Enter your monthly SIP amount.
- Enter the expected return a year – equity funds have averaged around 10–12% over long periods, debt funds 6–8%, but nothing is guaranteed.
- Enter how many years you will invest.
- Optionally add a yearly step-up – the percentage you increase the SIP by each year as your income grows.
SIP formula
M = P \times \dfrac{(1 + i)^{n} - 1}{i} \times (1 + i)M– the value at the end,P– the monthly SIPi– the monthly rate: yearly return ÷ 12 ÷ 100,n– the number of months
Each instalment is invested at the start of the month, the way most fund houses and SIP calculators work.
i = 12 \div 12 \div 100 = 0.01,\quad n = 120M = 5000 \times \dfrac{1.01^{120} - 1}{0.01} \times 1.01 = 11{,}61{,}695
You invest ₹6,00,000 and the estimated gain is ₹5,61,695.
What ₹5,000 a month can grow to
| Years | Invested | At 10% | At 12% | At 15% |
|---|---|---|---|---|
| 5 | ₹3,00,000 | ₹3,90,412 | ₹4,12,432 | ₹4,48,408 |
| 10 | ₹6,00,000 | ₹10,32,760 | ₹11,61,695 | ₹13,93,286 |
| 15 | ₹9,00,000 | ₹20,89,621 | ₹25,22,880 | ₹33,84,315 |
| 20 | ₹12,00,000 | ₹38,28,485 | ₹49,95,740 | ₹75,79,775 |
| 25 | ₹15,00,000 | ₹66,89,452 | ₹94,88,175 | ₹1,64,20,369 |
| 30 | ₹18,00,000 | ₹1,13,96,627 | ₹1,76,49,569 | ₹3,50,49,103 |
Time does most of the work: after 30 years at 12%, the gain is over 8 times what was invested.
Step-up SIP
A step-up (top-up) SIP raises the monthly amount every year. A ₹5,000 SIP with a 10% yearly step-up at 12% for 20 years grows to about ₹1 crore – roughly double the plain SIP.
For a one-time investment use the compound interest calculator; for guaranteed returns compare the PPF and FD calculators.
SIP for 10 years (12%)
- ₹500 a month₹1,16,170 after 10 years
- ₹1,000 a month₹2,32,339 after 10 years
- ₹2,000 a month₹4,64,678 after 10 years
- ₹2,500 a month₹5,80,848 after 10 years
- ₹3,000 a month₹6,97,017 after 10 years
- ₹5,000 a month₹11,61,695 after 10 years
- ₹10,000 a month₹23,23,391 after 10 years
- ₹15,000 a month₹34,85,086 after 10 years
- ₹20,000 a month₹46,46,782 after 10 years
- ₹25,000 a month₹58,08,477 after 10 years
- ₹50,000 a month₹1,16,16,954 after 10 years
Frequently asked questions
What is a SIP?
A systematic investment plan: you invest a fixed amount in a mutual fund every month, usually by auto-debit. Buying every month averages out the price you pay.
How accurate is a SIP calculator?
It shows what happens at a steady return. Real fund returns go up and down from year to year, so the actual value will differ – treat the result as an estimate.
What return should I use?
For long-term equity funds many people use 10–12%; for debt or hybrid funds, 6–9%. Using a slightly lower rate gives a safer plan.
How much will ₹5,000 a month become in 10 years?
About ₹11.6 lakh at 12% a year – ₹6 lakh invested and about ₹5.6 lakh in gains.
What is a step-up SIP?
A SIP whose amount rises every year by a fixed percentage, for example 10%. It helps your investments keep pace with a growing salary.
Is SIP return taxable?
Yes. In India, gains on equity funds held over a year are taxed as long-term capital gains above the yearly exemption; shorter holdings and debt funds are taxed differently.