A Systematic Investment Plan (SIP) is a method of investing a fixed amount at regular intervals — typically monthly — into a mutual fund or investment vehicle. It leverages rupee-cost averaging and the power of compounding to build wealth over time.

What formula does this calculator use?

SIP maturity value is calculated using the formula: M = P × [(1 + r)^n − 1] / r × (1 + r), where P is the monthly contribution, r is the monthly interest rate (annual rate / 12 / 100), and n is the total number of months. Each monthly installment compounds for the remaining period. With an annual step-up, the calculator works month by month instead: the installment is added at the start of each month, the balance grows by r, and the installment rises by the step-up percentage every 12 months.

Is the return rate guaranteed?

No. The expected annual return you enter is an assumption, not a guarantee. Actual mutual fund returns vary based on market conditions, fund type, and economic factors. Past returns have varied widely by fund and period and do not predict future returns, so try a few rates (for example 8%, 10% and 12%) to see a range instead of one number.

How is total invested different from maturity value?

Total invested is simply your monthly amount multiplied by the number of months — the money you actually put in. Maturity value is the projected final corpus including compound returns. The difference between the two is your estimated wealth gain.

Does this account for inflation or taxes?

No. This calculator shows nominal pre-tax, pre-inflation returns. In practice, long-term capital gains on equity mutual funds may be taxed, and inflation erodes purchasing power. To estimate real returns, use (1 + return) ÷ (1 + inflation) − 1 as the rate. A 12% return with 6% inflation is a real return of about 5.66%.

What is a good monthly SIP amount to start with?

Any amount you can invest consistently is a good start. Even Rs 500 or $50 per month compounded over many years builds meaningful wealth. The key factors are the return rate and how long you stay invested, not just the amount.

Why does my SIP result differ from another calculator?

Calculators make different assumptions. This one, like most Indian SIP calculators, assumes each installment is paid at the start of the month and uses a monthly rate of annual return ÷ 12: ₹5,000 for 10 years at 12% gives ₹1,161,695. Paying at the end of each month gives ₹1,150,193. Using an effective monthly rate of 1.12^(1/12) − 1 gives ₹1,120,179.

How much SIP do I need for ₹1 crore?

This calculator works forward from a monthly amount, so try amounts until the maturity value reaches ₹10,000,000 (₹1 crore). At an assumed 12% a year, about ₹10,009 a month gets there in 20 years, ₹19,819 in 15 years and ₹43,041 in 10 years. A lower return or a shorter period needs a bigger monthly amount.

Is a SIP better than a lump sum?

They answer different questions, and this calculator only models a monthly SIP. At 12% a year compounded monthly, the convention used here, ₹600,000 invested at once for 10 years grows to about ₹1,980,232, while ₹5,000 a month over 10 years with no step-up grows to ₹1,161,695, because the lump sum is invested for longer on average. Real returns are not steady, so a SIP spreads purchases across market ups and downs. The Lump Sum Calculator models a one-time investment.

What is a step-up SIP?

A SIP whose monthly amount rises by a fixed percentage once a year, usually in line with salary increases. Enter that percentage as the annual step-up. At an assumed 12%, ₹5,000 a month for 10 years with a 10% yearly step-up grows to ₹1,687,163 from ₹956,245 invested, with the installment reaching ₹11,790 in year 10. Without the step-up the same plan gives ₹1,161,695 from ₹600,000.

SIP Calculator

Enter your monthly SIP amount, expected annual return and duration, plus an optional yearly step-up, to see your maturity value and total returns. Amounts default to rupees (₹); other currency symbols are in the list.

SIP calculators use the future value of an annuity due: FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the monthly amount, i is the annual return ÷ 12 and n is the number of months.

SIP Details

Currency Symbol

Monthly Investment

₹

Expected Annual Return

Investment Duration

years

Annual Step-up (optional)

Raise the monthly amount by this much each year. 0 keeps it flat.

Enter your SIP details and click Calculate

Maturity value and year-by-year table will appear here

Maturity Value

—

Total Invested

—

Wealth Gained

—

Return Multiple

—

Invested Returns

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Year-by-Year Breakdown

Year	Invested	Returns	Corpus

Quick answer

SIP calculators use the future value of an annuity due: FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the monthly amount, i is the annual return ÷ 12 and n is the number of months. Investing ₹5,000 a month for 10 years at an assumed 12% gives ₹1,161,695 (about ₹11.6 lakh): ₹600,000 invested plus ₹561,695 in estimated returns. The return rate is an assumption, not a guarantee.

Examples

₹5,000/mo at 12%	Invested	Value
5 years	₹300,000	₹412,432
10 years	₹600,000	₹1,161,695
15 years	₹900,000	₹2,522,880
20 years	₹1,200,000	₹4,995,740
25 years	₹1,500,000	₹9,488,175
30 years	₹1,800,000	₹17,649,569

Pick ₹ and enter your monthly investment.

Summary

How it works

Enter your monthly SIP contribution amount.
Enter the expected annual return rate as a percentage (for example, 12 for 12%).
Set the investment duration in years.
Optionally enter an annual step-up, the percentage by which you raise the monthly amount each year (0 keeps it flat).
Click Calculate to see your total invested amount, estimated returns, and maturity value.
Review the year-by-year breakdown to track how your wealth compounds over time.

Use cases

A salaried professional calculating how much wealth a monthly Rs 5,000 SIP will build over 20 years at 12% annual returns.
A first-time investor comparing the impact of investing Rs 2,000 vs Rs 5,000 per month over the same period.
A financial planner showing clients the power of starting early by varying the duration from 10 to 30 years.
A student estimating how a small monthly SIP started today can grow into a significant corpus by retirement.
Anyone comparing the difference between a 10% and 14% expected return on the same monthly contribution.

Frequently Asked Questions

Last updated: 2026-05-23 · Reviewed by Nham Vu