What a SIP calculator actually tells you
A Systematic Investment Plan, or SIP, is simply investing a fixed amount into a mutual fund every month instead of investing a lump sum once. This calculator projects what that monthly habit could grow into, based on an assumed rate of return — showing you three numbers: how much you actually put in, how much growth you gained on top of that, and the total maturity value.
The maths behind it is compound interest applied to a series of monthly contributions rather than one deposit. Each month's investment earns returns, and those returns themselves start earning returns in the following months. Over a short period this effect is small. Over ten or twenty years it becomes the majority of the final number — which is the entire case for starting early rather than starting with a larger amount later.
Who uses this most
- First-time investors — working out whether a modest monthly amount can realistically build a meaningful corpus over time.
- Goal-based planners — reverse-engineering how much to invest monthly for a house down payment, a child's education or retirement.
- Anyone comparing SIP to a lump sum — seeing the difference a disciplined monthly habit makes against a one-time investment.
- People with a growing income — using the step-up option to see how increasing the SIP amount each year changes the outcome.
How to use the SIP calculator
- Enter your monthly investmentUse the slider or type an exact amount. Most mutual funds accept a SIP starting from ₹500.
- Set an expected annual returnThis is an assumption, not a promise — see the return rate guidance below for realistic ranges by fund type.
- Set your investment periodLonger periods are where compounding does most of its work — the difference between 10 and 20 years is far more than double.
- Switch on step-up if your income growsEnter the percentage you expect to increase your SIP by each year. Even a modest step-up meaningfully changes the outcome over a long period.
- Read the three numbersInvested amount is what you actually paid in. Wealth gained is the return on top. Maturity value is the two added together.
This is a projection based on the return rate you enter, not a guarantee. Mutual fund returns are market-linked, and past performance of a fund is not a promise of future performance. Use this to compare scenarios, not to lock in an expected outcome.
What return rate should you actually assume?
The single biggest input error people make is assuming an overly optimistic return rate. The number you choose here has an enormous effect on the projection, so it is worth grounding it in historical ranges by category rather than picking a round number.
| Fund category | Typical long-term range | Risk level |
|---|
| Large-cap equity funds | 10% – 12% | Moderately high |
| Flexi-cap / multi-cap funds | 11% – 14% | High |
| Mid-cap and small-cap funds | 12% – 16% | Very high, more volatile |
| Hybrid / balanced funds | 8% – 10% | Moderate |
| Debt funds | 6% – 7.5% | Low |
| ELSS (tax-saving equity) | 10% – 13% | High |
These are long-term historical ranges, not forecasts, and any individual year can land well outside them in either direction. A conservative habit worth adopting: run the calculator twice, once at your realistic expectation and once a few percentage points lower, so your plan does not depend entirely on the optimistic case.
SIP versus lump sum — which actually suits you
| SIP | Lump sum |
|---|
| Best suited to | Regular income — salary, freelance earnings | A windfall — bonus, inheritance, maturity payout |
| Market timing risk | Spread across many entry points, reducing timing risk | Entirely dependent on the entry point chosen |
| Discipline required | Low — mostly automatic once set up | High — the full amount is exposed at once |
| Volatile market behaviour | Buys more units when prices fall, smoothing the average cost | No averaging effect |
Neither is objectively superior — a SIP suits money you earn progressively, while a lump sum suits money you already have sitting idle. Many investors do both: a regular SIP from salary, and a lump sum top-up whenever a bonus or windfall arrives. If you want to model the lump sum side separately, a lumpsum calculator uses the same compounding maths without the monthly contribution.
Common mistakes this calculator can help you avoid
Assuming an unrealistically high return rate
Twenty percent sounds achievable after a strong market year, but very few funds sustain that over a full decade. Check the return rate table above and lean conservative rather than optimistic.
Underestimating how much a small step-up matters
A 10% annual step-up on a modest starting SIP often outperforms a much larger flat SIP over fifteen years, simply because your contribution keeps pace with your rising income. Try both modes here and compare the maturity value.
Stopping the SIP during a market downturn
This calculator assumes consistent monthly investing for the full period. Investors who pause contributions when markets fall miss out on buying units at lower prices, which is precisely when a SIP's averaging effect works hardest in their favour.
Forgetting that returns are pre-tax
The maturity value shown here is before any capital gains tax due on withdrawal. Equity mutual fund gains held over a year are taxed as long-term capital gains under current Indian tax rules, so your actual take-home amount will be somewhat lower than the figure shown.
Ignoring inflation
A number that looks large today buys less in twenty years. When planning for a long-term goal like retirement, it is worth mentally discounting the maturity value for inflation rather than treating it as today's purchasing power.
Getting the most out of this calculator
- Run the numbers at two or three different return assumptions rather than trusting a single optimistic figure.
- Use the step-up mode if you expect regular salary increments — it is usually a more realistic model than a flat SIP for a salaried investor.
- Compare a shorter, larger SIP against a longer, smaller one — tenure typically matters more than the monthly amount.
- Treat the output as a planning estimate, not a guarantee, and revisit it every year or two as your income and goals change.
- Remember this figure is pre-tax — set your actual goal amount slightly higher to account for capital gains tax on withdrawal.
Nothing you enter is sent anywhere
All the calculation happens inside your browser using JavaScript. Your income figures and investment amounts are never transmitted to a server, stored, or seen by anyone — the numbers exist only on your own device for as long as the page is open.
Related tools
SIP calculator — more questions
How accurate is this SIP calculator?
The arithmetic is exact for the return rate you enter, but the return rate itself is your assumption, not a forecast. Actual mutual fund performance depends on market conditions and the specific fund chosen, so treat the output as one scenario among several rather than a prediction.
What is a good monthly SIP amount to start with?
Most mutual funds accept a SIP from ₹500 a month, so there is no meaningful minimum. A more useful approach is working backwards from a goal amount and target date, then checking whether the required monthly figure fits your budget — increase the tenure if it does not.
What is a step-up SIP?
A step-up SIP increases your monthly contribution by a fixed percentage every year, usually to track a rising salary. Switch on step-up mode above to see how a modest yearly increase compares to a flat SIP over the same period.
Is the maturity value shown before or after tax?
Before tax. Equity mutual fund gains held over a year are taxed as long-term capital gains under current Indian rules at the time of withdrawal, so your actual proceeds will be somewhat lower than the figure shown here.
Should I choose SIP or lump sum investing?
SIP suits money you earn progressively, such as a salary, since it removes the need to time the market and smooths your average purchase cost. Lump sum suits money you already have sitting idle, such as a bonus. Many investors use both.
What return rate should I assume for equity mutual funds?
Historically, diversified equity funds in India have delivered roughly 10% to 14% annually over long periods, though any individual year can vary substantially. Using a conservative figure within that range, and checking the result again at a lower rate, is safer than assuming the top end.
Does this calculator account for expense ratio or exit load?
No. It projects growth at the return rate you enter, which is generally understood as the fund's return net of its expense ratio when quoted from historical fund data. Exit load, if applicable on early withdrawal, is not factored in and would reduce your actual proceeds slightly.
Is my financial information stored or sent anywhere?
No. Every calculation happens inside your browser. Nothing you enter is transmitted, logged or stored.