How to use this SIP calculator
- Enter the monthly investment amount you plan to invest via SIP.
- Set the expected annual return rate using the slider or type it directly. Equity mutual funds have historically returned 10–15% p.a. over the long term.
- Choose the investment period in years.
- The calculator instantly shows your total corpus, amount invested, estimated returns, a pie chart breakdown, and a wealth growth chart.
- Expand the year-by-year breakdown to see how your investment grows each year.
What is SIP?
SIP (Systematic Investment Plan) is a method of investing a fixed amount at regular intervals — typically monthly — in a mutual fund scheme. Instead of investing a lump sum, SIP lets you invest small amounts consistently over time.
SIP offers two key advantages:
- Rupee-cost averaging: By investing a fixed amount every month regardless of market conditions, you automatically buy more units when prices are low and fewer units when prices are high. This averages out the cost per unit over time.
- Power of compounding: Each month's investment earns returns, and those returns earn further returns. Over long periods, compounding can significantly multiply your wealth.
SIP formula
Where P = monthly investment, r = monthly rate of return (annual rate ÷ 12 ÷ 100), n = total number of months.
For example, investing ₹10,000/month at 12% p.a. for 10 years: r = 0.01, n = 120. FV = 10,000 × [((1.01)120 − 1) / 0.01] × 1.01 = approximately ₹23.23 lakh.
SIP vs lump sum: which is better?
| Factor | SIP | Lump sum |
|---|---|---|
| Market timing risk | Low (rupee-cost averaging) | High |
| Capital required | Small monthly amounts | Large upfront amount |
| Discipline | Automatic, builds habit | One-time decision |
| Best in rising market | Moderate returns | Higher returns |
| Best in volatile market | Better due to averaging | Risky |
Frequently asked questions
What is the minimum amount to start a SIP?
Most mutual funds in India allow you to start a SIP with as little as ₹500 per month. Some funds have a minimum of ₹100 or ₹1,000 depending on the scheme.
Can I increase my SIP amount over time?
Yes, many fund houses offer a step-up SIP (or top-up SIP) where your monthly investment increases by a fixed amount or percentage each year. This helps match your growing income and accelerates wealth creation.
Are SIP returns guaranteed?
No. SIP returns depend on the performance of the underlying mutual fund, which is linked to market conditions. The calculator shows estimated returns based on a constant rate, which may differ from actual returns. However, long-term SIP investing in diversified equity funds has historically delivered good returns.
Can I stop or pause my SIP?
Yes. SIPs are flexible — you can pause, stop, or modify the amount at any time without penalties. However, staying invested for the long term typically yields the best results due to compounding.
How is SIP different from a recurring deposit (RD)?
Both involve regular monthly investments, but an RD offers a fixed, guaranteed interest rate (typically 5–7%), while SIP invests in mutual funds with market-linked returns that can be higher (10–15% historically for equity funds) but are not guaranteed.