SIP Calculator

A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. The calculator compounds your monthly contribution at the expected annual return rate to project the future value of the corpus and how much of it is your invested amount versus market-driven wealth gain.

For equity mutual fund SIPs in India, 11–13% annualised is a reasonable long-term assumption based on historical Nifty 50 and broad-market index returns. For debt funds use 6–7%, and for hybrid funds 8–10%. Always stay invested for at least 7–10 years for these averages to hold.

At 12% annualised, you need roughly ₹21,000/month for 15 years, ₹10,000/month for 20 years, or ₹5,000/month for 26 years to reach ₹1 crore. Longer tenures benefit dramatically from compounding, so starting early matters more than starting big.

No. SIPs invest in mutual funds whose returns depend on market performance. The calculator shows an estimate based on the rate you enter; actual returns can be higher or lower. Equity SIPs are volatile over short periods but tend to smooth out over 7+ years.

SIPs reduce timing risk through rupee-cost averaging, which suits salaried investors with monthly cash flow. Lumpsums work better when markets are clearly undervalued and you have idle capital. For most Indians, a steady SIP supplemented by occasional lumpsums during corrections is the optimal mix.

Each SIP instalment is treated as a separate investment for tax. Equity mutual fund gains held over 12 months are LTCG, taxed at 12.5% beyond ₹1.25 lakh per year. Debt fund gains are taxed at your income-tax slab regardless of holding period (post 1 April 2023 purchases).