SIP Calculator India

Free Tool Plan your mutual fund investments
Investment Details
₹
%
yrs

Results

Enter your SIP details to see projections

What is a SIP?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular intervals — typically monthly — into a mutual fund scheme. Rather than timing the market with a lump sum, SIP spreads your investment across market cycles, reducing the impact of volatility through rupee cost averaging.

The SIP Formula

FV = P × [((1 + r)ⁿ − 1) / r] × (1 + r)
P = monthly investment, r = monthly return rate (annual ÷ 12 ÷ 100), n = total months

This formula calculates the future value of an annuity due (contributions at the beginning of each month). For a step-up SIP, the calculation is done year by year with the increased monthly amount applied from the start of each new year.

Why SIP Works

  • Rupee cost averaging: You buy more units when NAV is low and fewer when it's high, automatically averaging your purchase cost.
  • Compounding: Returns earn returns. A ₹5,000 monthly SIP at 12% for 20 years grows to over ₹49 lakh — on just ₹12 lakh invested.
  • Discipline: Auto-debit removes the emotional decision of "is this a good time to invest?"
  • Accessibility: Start with as little as ₹500/month in most mutual funds.

Step-Up SIP Explained

A step-up (or top-up) SIP increases your monthly contribution by a fixed percentage each year. This aligns your investments with salary increments. For example, a 10% step-up on ₹5,000/month means you invest ₹5,500 in year 2, ₹6,050 in year 3, and so on. Over long periods, step-up SIP can dramatically increase your final corpus compared to a flat SIP.

Tax Implications (India, 2025)

  • Equity funds (held > 1 year): LTCG above ₹1.25 lakh/year taxed at 12.5%
  • Equity funds (held < 1 year): STCG taxed at 20%
  • Debt funds: Gains taxed at your income tax slab rate, regardless of holding period
  • ELSS funds: Tax deduction up to ₹1.5 lakh under Section 80C (3-year lock-in)

Each SIP instalment is treated as a separate investment for capital gains purposes. This means each month's units have their own holding period and gain/loss calculation.

SIP vs. Lumpsum

In a consistently rising market, lumpsum investing produces higher returns because the full amount compounds from day one. In volatile or declining markets, SIP outperforms because it averages down the purchase cost. In practice, most investors don't have a lump sum available — they earn monthly — making SIP the natural choice. This calculator shows a lumpsum comparison so you can see the difference.

Frequently Asked Questions

SIP is a method of investing a fixed amount regularly into a mutual fund. It automates your investments and benefits from rupee cost averaging and compounding. Most fund houses allow SIPs starting from ₹500/month.
A step-up SIP increases your monthly investment by a fixed percentage each year — typically 10%. This aligns your investing with salary growth and can significantly boost your corpus over long time horizons.
No. SIP returns depend on market performance. Historical returns of large-cap equity funds in India have averaged 12–15% annually over 10+ year periods, but past performance doesn't guarantee future results. Debt fund returns are more stable but lower.
For equity funds, long-term gains (held over 1 year) above ₹1.25 lakh/year are taxed at 12.5%. Short-term gains are taxed at 20%. Each SIP instalment has its own holding period for tax calculation. ELSS funds offer Section 80C deductions up to ₹1.5 lakh.
A good rule of thumb is 15–20% of your monthly income. Start with what you can sustain consistently — even ₹1,000/month — and increase annually using step-up SIP. Consistency matters more than the starting amount.

Disclaimer

This calculator is for illustrative purposes only and does not constitute financial advice. Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. Consult a SEBI-registered financial advisor before investing.