SIP Calculator
Calculate your mutual fund SIP returns, total investment value & wealth gained over time.
SIP Calculator
Total Value
₹0
Total Invested
₹0
Wealth Gained
₹0
Year-wise SIP Growth
| Year | Invested | Returns | Total Value |
|---|
SIP Returns by Tenure
See how time multiplies your wealth (₹10,000/month @ 12%)
| Tenure | Total Invested | Wealth Gained | Total Value |
|---|
How SIP Returns are Calculated
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in mutual funds. The returns from SIP are calculated based on the concept of compounding, where you earn returns on your invested capital as well as on the accumulated returns.
SIP Calculation Formula
M = P × [((1 + i)^n - 1) / i] × (1 + i)
- M = Maturity Amount (Future Value)
- P = Monthly SIP Amount
- i = Monthly Rate of Return (Annual Rate / 12 / 100)
- n = Total Number of Months (Years × 12)
Example Calculation
For a monthly SIP of ₹10,000 at 12% p.a. for 10 years:
• Monthly SIP: ₹10,000
• Total Invested: ₹12,00,000 (₹10,000 × 120 months)
• Expected Return Rate: 12% p.a. (1% monthly)
→ Wealth Gained: ₹11,01,174
→ Total Value: ₹23,01,174
The Power of Compounding in SIP
The magic of SIP lies in compounding—earning returns on your returns. The longer you stay invested, the greater the compounding effect. In the initial years, most of your corpus comes from your investment. But in later years, returns start generating more returns, accelerating wealth creation exponentially.
5 Years
₹6L invested → ₹4.5L returns
Returns = 75% of invested
15 Years
₹18L invested → ₹32L returns
Returns = 178% of invested
25 Years
₹30L invested → ₹1.28Cr returns
Returns = 427% of invested
Benefits of Investing via SIP
- 1 Rupee Cost Averaging: You buy more units when the market is down and fewer when it's up. This averages out your purchase cost over time, reducing the impact of market volatility.
- 2 No Need to Time the Market: Since you invest a fixed amount regularly, you don't need to worry about finding the "right time" to invest. SIP takes care of market timing automatically.
- 3 Financial Discipline: SIP enforces a regular savings habit. Automated deductions ensure you invest consistently before spending.
- 4 Flexibility: You can start a SIP with as low as ₹500/month. Increase, decrease, pause, or stop your SIP anytime without penalty.
- 5 Power of Compounding: Long-term SIPs benefit immensely from compounding, where your returns generate further returns, leading to exponential growth.
What is Step-Up SIP?
A Step-Up SIP (or Top-Up SIP) allows you to increase your SIP amount by a fixed percentage or amount every year. As your income grows annually, your investment should too. This small step can make a massive difference to your final corpus.
Regular SIP (₹10,000/month for 15 yrs @ 12%)
Total Invested: ₹18,00,000
Maturity: ₹50,45,760
Step-Up SIP (10% annual increase, same period)
Total Invested: ₹37,93,400
Maturity: ₹87,50,376
Taxation on SIP Returns
| Fund Type | Short-Term (STCG) | Long-Term (LTCG) | Holding Period |
|---|---|---|---|
| Equity Funds | 20% | 12.5% (Above ₹1.25L) | > 1 Year |
| Debt Funds | As per Slab | As per Slab | No benefit |
* Tax rules as per Budget 2024. SIPs are taxed on a FIFO (First In First Out) basis. Consult a tax advisor.