Investment & Retirement

    SIP Calculator

    Calculate the future value of a monthly SIP in mutual funds — with year-by-year corpus growth, total invested vs wealth-gain split and inflation-adjusted view.

    Inputs
    %
    years
    Result
    Maturity Value
    ₹23,23,391
    • Total Invested₹12,00,000
    • Wealth Gained₹11,23,391
    • Absolute Return93.62%

    A ₹10,000/month SIP at 12% for 10 years grows to ₹23,23,391 — a wealth gain of ₹11,23,391.

    Growth Over Time
    Step-by-step calculation
    1. Monthly rate i = 12 / 12 / 100 = 0.01
    2. Number of instalments n = 10 × 12 = 120
    3. FV = m × ((1+i)^n − 1) / i × (1+i) = ₹23,23,391
    4. Invested = m × n = ₹12,00,000
    How this is calculated
    FV = P × [((1 + i)ⁿ − 1) / i] × (1 + i)
    • P = monthly investment, i = monthly rate (annual/12/100), n = total months.
    • Assumes end-of-period compounding with monthly SIPs.
    • Returns are indicative; actual mutual-fund returns vary with market performance.
    Written by Taxpex CA Team
    Chartered Accountants (ICAI) · Reviewed by Taxpex Editorial Board
    Last updated 10 Nov 2025
    When to use this

    Is this the right calculator for you?

    • Planning a specific financial goal — child's education, retirement, house down-payment — with a monthly budget.
    • Comparing SIP maturity at different expected return rates (8% debt vs 12% equity vs 15% aggressive).
    • Deciding step-up SIP amounts every year to match salary hikes and beat inflation.
    • Modelling the impact of pausing or increasing a SIP mid-way.
    Overview

    Understanding the SIP

    A Systematic Investment Plan (SIP) is the most disciplined way an Indian retail investor can build wealth in mutual funds. Instead of timing the market, you invest a fixed rupee amount every month; the fund house allots units at that day's NAV. Over long horizons — 10, 15, 20 years — the twin engines of rupee-cost averaging and compounding turn small monthly contributions into meaningful corpuses. This SIP calculator projects the future value of your monthly SIP for any tenure and any expected annual return, and shows the invested-vs-value split year by year.

    The underlying formula is the future value of an ordinary annuity due: FV = P × [((1+i)^n − 1) / i] × (1+i), where P is the monthly instalment, i is the monthly rate (annual return / 12 / 100) and n is the total number of months. The calculator uses end-of-period compounding, which matches how AMCs actually allot units on your SIP date. Change the return assumption to model best-case (equity 14–15%), base-case (balanced 10–12%) and worst-case (debt 6–7%) scenarios.

    SIPs are eligible for indexation-free equity taxation — LTCG at 12.5% above ₹1.25 lakh per year for equity funds held over 12 months — and can be paired with ELSS SIPs to claim ₹1.5 lakh under Section 80C (old regime only). For goal-based planning use this calculator alongside our lumpsum, PPF and NPS calculators to build a diversified retirement corpus with the right equity/debt mix.

    Worked examples

    Real-world scenarios, step-by-step

    ₹10,000/month for 20 years at 12%

    A 30-year-old salaried professional starts a ₹10,000 monthly SIP in a Nifty 50 index fund, targeting a retirement corpus.

    • P = 10,000 | i = 12%/12 = 1% | n = 240
    • FV = 10,000 × ((1.01^240 − 1)/0.01) × 1.01
    • FV ≈ ₹99.9 L | Invested = ₹24 L | Gain = ₹75.9 L
    Maturity ≈ ₹99.9 lakh — a 4.2× multiplier.
    ₹25,000/month step-up 10% annually

    Founder invests ₹25,000/month with a 10% annual step-up for 15 years targeting an early-retirement corpus.

    • Base SIP grows at 12%, contribution rises 10%/year
    • Total invested ≈ ₹95.4 L | Corpus ≈ ₹1.72 Cr
    • Step-up adds ~35% over flat SIP
    Step-up corpus ≈ ₹1.72 Cr vs ₹1.26 Cr flat.
    Rates & reference

    SIP maturity at ₹10,000/month across return scenarios

    Tenure8% (debt)10% (balanced)12% (equity)15% (aggressive)
    10 years₹18.4 L₹20.7 L₹23.2 L₹27.9 L
    15 years₹34.8 L₹41.8 L₹50.5 L₹68.0 L
    20 years₹59.3 L₹76.6 L₹99.9 L₹1.52 Cr
    25 years₹95.7 L₹1.34 Cr₹1.90 Cr₹3.28 Cr
    30 years₹1.50 Cr₹2.28 Cr₹3.53 Cr₹7.00 Cr
    Pro tips

    Common mistakes to avoid

    Stopping a SIP during a market crash — the discount phase is exactly where averaging works.

    Assuming past 5-year returns will repeat: model 10–12% for equity, not 18%.

    Ignoring expense ratio and exit load — a 1.5% TER compounds against you.

    Not increasing SIP with income — inflation eats a flat contribution.

    Redeeming for short-term needs — LTCG >1 year is far more tax-efficient.

    Need a CA to review your numbers? Book a free consult — we'll double-check within 24 hours.

    CA insights

    Expert tips from senior CAs

    • Anchor SIP dates to the day after salary credit so cashflow never breaks.

    • Split large SIPs across 2–3 funds (large-cap + flexi-cap + index) for diversification.

    • Use direct plans on AMC websites — save 60–80 bps vs regular plans.

    • Review — don't churn — every 12 months against benchmark.

    Frequently asked questions

    Is SIP better than lumpsum?+

    SIP averages your purchase cost across market cycles (rupee-cost averaging) and enforces discipline. Lumpsum works better only when markets are decisively undervalued.

    Are SIP returns guaranteed?+

    No. SIP returns depend on the underlying fund's market performance. The 12% default here is a long-term equity assumption, not a guarantee.

    Do I pay tax on SIP gains?+

    Equity fund gains held >1 year are LTCG taxed at 12.5% above ₹1.25 lakh/year. Debt fund gains are taxed at your slab rate.

    Keep exploring

    People also ask

    Is SIP better than lumpsum?+

    SIP averages your purchase cost across market cycles (rupee-cost averaging) and enforces discipline. Lumpsum works better only when markets are decisively undervalued.

    via SIP Calculator
    Are SIP returns guaranteed?+

    No. SIP returns depend on the underlying fund's market performance. The 12% default here is a long-term equity assumption, not a guarantee.

    via SIP Calculator
    Do I pay tax on SIP gains?+

    Equity fund gains held >1 year are LTCG taxed at 12.5% above ₹1.25 lakh/year. Debt fund gains are taxed at your slab rate.

    via SIP Calculator
    Does the calculator include the annual bonus?+

    The bonus / variable pay is shown separately since it is typically paid annually, not monthly.

    via In-Hand Salary Calculator
    Term or endowment insurance?+

    For pure risk cover, always term insurance. Endowment/ULIPs mix insurance with investment and typically deliver poor returns on both.

    via Life Insurance Calculator

    Cite this page

    This dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.

    Citation (APA)
    Taxpex Consultancy. (2026). SIP Calculator — Taxpex. Retrieved from https://taxpex.com/tools/investment/sip-calculator
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