SIP Calculator
Estimate how a regular Systematic Investment Plan (SIP) may grow over time. Calculate standard SIP returns, model an annual step-up in contributions, or work backwards from a target corpus to estimate the SIP amount needed.
Calculate regular SIP returns
Estimate the future value of a fixed contribution invested at regular intervals.
Assumes each instalment is invested at the beginning of its period and the selected annual return compounds at the SIP frequency.
Calculate step-up SIP growth
Increase your periodic SIP amount once every year by a selected percentage.
A 10% annual step-up means a ₹5,000 monthly SIP becomes ₹5,500 per month in year 2, ₹6,050 in year 3, and so on.
Calculate SIP needed for a goal
Enter the target corpus and estimate the regular SIP contribution required to pursue it.
This is a mathematical estimate based on a constant assumed rate. Actual market returns may leave the final corpus above or below the target.
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| Year | Amount invested | Estimated returns | Estimated value |
|---|
SIP calculator quick answer: enter your regular investment amount, expected annual return and investment period to estimate your invested amount, potential gains and future value. For example, a ₹5,000 monthly SIP for 10 years at an assumed 12% annual return produces an estimated corpus of about ₹11.62 lakh under the beginning-of-period assumption used by this calculator. The ₹6 lakh contribution amount is known; the return component is only an estimate.
What is a SIP?
SIP stands for Systematic Investment Plan. It is a method of investing a fixed amount at regular intervals, commonly into a mutual fund. SIP is not a separate mutual fund product; it is an investing method that can help automate contributions and spread investments across different market dates.
A SIP does not remove investment risk. The value of a mutual fund can rise or fall, and the final return depends on market performance, the selected scheme, costs, taxes and how long you remain invested.
How to use the SIP Calculator
- Choose Regular SIP for a fixed recurring contribution.
- Choose Step-Up SIP if you plan to increase the contribution every year.
- Choose Goal SIP if you know the target corpus and want to estimate the required periodic investment.
- Enter a realistic expected annual return and the investment period.
- Review the invested amount, estimated returns, final value and year-wise projection instead of looking only at the headline corpus.
SIP formula and how returns are calculated
For a fixed SIP contribution assumed at the beginning of each period, this page uses the future-value formula FV = P × [((1+r)n − 1) ÷ r] × (1+r). Here, P is the recurring investment, r is the assumed return per SIP period and n is the number of instalments.
The annual return entered in the calculator is converted into a periodic rate based on the selected frequency. A monthly SIP uses 12 periods per year, a quarterly SIP uses 4, and so on. Real mutual fund returns do not arrive at a constant rate, so the formula is a planning approximation rather than a forecast.
SIP calculation example
| Input / result | Example | Meaning |
|---|---|---|
| Monthly SIP | ₹5,000 | Amount contributed at the beginning of each month |
| Expected annual return | 12% | Constant mathematical assumption, not a guarantee |
| Investment period | 10 years | 120 monthly instalments |
| Total invested | ₹6,00,000 | Your total contributions |
| Estimated maturity value | About ₹11.62 lakh | Illustrative value under the calculator's assumptions |
Regular SIP, Step-Up SIP and Goal SIP
Regular SIP
Use this when you plan to invest the same amount every period. It is the simplest way to compare how amount, time and assumed return affect the estimated corpus.
Step-Up SIP
Use this when you expect to increase your contribution every year. A step-up can help contributions keep pace with rising income, but it also requires a larger cash commitment over time.
Goal SIP
Use this when you know the target corpus. The calculator works backwards to estimate the recurring contribution needed under the assumed rate and time period.
What is a Step-Up SIP?
A step-up SIP, sometimes called a top-up SIP, increases the SIP amount periodically, commonly once a year. If a ₹5,000 monthly SIP is stepped up by 10% annually, the monthly contribution becomes ₹5,500 in year 2 and ₹6,050 in year 3.
Step-up SIPs can increase the eventual corpus because more money is invested as time progresses. However, the result depends both on the contribution increases and on the market returns actually achieved.
What is a Goal SIP Calculator?
A goal SIP calculator starts with the amount you want in the future and estimates how much you would need to invest regularly to pursue that target. This can be useful for goals such as retirement, education, a home down payment or another long-term objective.
The calculation should be revisited periodically. Inflation can increase the cost of the goal, and actual portfolio returns may differ from the rate assumed today.
SIP vs lump sum investment
A SIP invests smaller amounts at regular intervals, while a lump sum invests a larger amount at one time. SIP may be easier to align with monthly cash flow and automatically spreads purchases across multiple market dates. Lump sum investing gives the entire amount market exposure immediately.
Neither method is automatically superior in every market condition. The suitable approach depends on available cash, risk tolerance, investment horizon, asset allocation and the purpose of the investment.
Power of compounding and rupee-cost averaging
Long investment periods give earlier contributions more time to participate in market growth. This compounding effect is one reason duration can have a large impact on a SIP projection.
Regular investing also means units may be purchased at different market prices. This is often described as rupee-cost averaging. It can reduce the need to choose one entry date, but it does not guarantee a profit or protect against losses in a declining market.
What affects your SIP maturity value?
- SIP amount: higher recurring contributions increase the amount invested.
- Investment duration: a longer period adds more instalments and gives earlier contributions more time to grow.
- Actual market return: mutual fund returns fluctuate and may be lower or higher than the assumption used here.
- Step-up rate: increasing the SIP every year can materially increase total contributions.
- Fund expenses, taxes and exit loads: these can reduce the amount you ultimately keep.
- Inflation: a large future corpus may have less purchasing power than the same nominal amount today.
Common SIP planning mistakes
- Assuming 12% is guaranteed: an expected return is only a scenario input.
- Ignoring inflation: future goals should be adjusted for rising costs.
- Looking only at maturity value: compare how much you invested with how much of the result is projected return.
- Using an unrealistic step-up: choose a contribution increase your future cash flow can support.
- Ignoring fund suitability: the calculator does not tell you which mutual fund or asset allocation is appropriate.
SIP calculator limitations
The calculator assumes a smooth periodic rate derived from the annual return you enter. Real markets do not grow smoothly. Returns can be negative in some periods, positive in others, and the order of returns affects the experience of an investor making regular contributions.
The result also does not automatically deduct mutual fund expense ratios, taxes, exit loads or platform-related costs. Use the output as a planning illustration and review scheme documents and current tax rules before investing.
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Frequently Asked Questions
What is a SIP calculator?
A SIP calculator estimates how regular investments may grow based on the contribution amount, assumed return, frequency and time period.
What is a step-up SIP?
A step-up SIP increases the recurring investment periodically, usually once a year. This calculator lets you apply a percentage increase to the SIP amount each year.
How much should I invest to reach ₹1 crore?
The required SIP depends on the time available and the return assumption. Use Goal SIP mode, enter ₹1 crore as the target and test multiple return scenarios instead of relying on one assumed rate.
Is a 12% SIP return guaranteed?
No. Mutual fund returns are market-linked. A 12% input is only a mathematical assumption used to create a scenario.
Does SIP guarantee rupee-cost averaging profits?
No. Regular investing spreads purchases across market dates, but rupee-cost averaging does not guarantee a profit or prevent losses.
Does this calculator include expense ratio and tax?
No. The output does not separately deduct expense ratio, taxes, exit loads or other charges unless those effects are already reflected in the return assumption you choose.
Is SIP the same as a mutual fund?
No. A mutual fund is an investment product. SIP is a recurring method of investing into a fund or another eligible product.
Last updated: October 18, 2026. This calculator provides mathematical illustrations for educational planning and does not constitute investment advice, a mutual fund recommendation or a guaranteed return.