🪙 SIP Calculator
Estimate how much a monthly systematic investment plan (SIP) in a mutual fund could grow to, and how much of it is returns.
Quick answer: Investing ₹10,000 a month through a SIP for 10 years at a 12% expected annual return grows to about ₹23,23,391 (₹23.23 lakh): ₹12 lakh invested plus ₹11,23,391 of estimated returns.
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SIP Calculator inputs
Result
Maturity value
₹23,23,391
₹10,000 a month for 10 years at 12%
| Amount invested | ₹12,00,000 |
| Estimated returns | ₹11,23,391 |
| Total value | ₹23,23,391 |
- Wealth gain
- 94% of amount invested
- Number of instalments
- 120
| Year | Invested | Growth | Balance |
|---|---|---|---|
| Y1 | ₹1,20,000 | ₹8,093 | ₹1,28,093 |
| Y2 | ₹2,40,000 | ₹32,432 | ₹2,72,432 |
| Y3 | ₹3,60,000 | ₹75,076 | ₹4,35,076 |
| Y4 | ₹4,80,000 | ₹1,38,348 | ₹6,18,348 |
| Y5 | ₹6,00,000 | ₹2,24,864 | ₹8,24,864 |
| Y6 | ₹7,20,000 | ₹3,37,570 | ₹10,57,570 |
| Y7 | ₹8,40,000 | ₹4,79,790 | ₹13,19,790 |
| Y8 | ₹9,60,000 | ₹6,55,266 | ₹16,15,266 |
| Y9 | ₹10,80,000 | ₹8,68,215 | ₹19,48,215 |
| Y10 | ₹12,00,000 | ₹11,23,391 | ₹23,23,391 |
How SIP returns are calculated
A systematic investment plan puts a fixed amount into a mutual fund every month. Each instalment buys units and grows for the remaining months, so early instalments compound the longest. Calculators assume a steady return and payments at the start of each month.
M = P × [((1 + i)n − 1) ÷ i] × (1 + i)
P is the monthly SIP amount, i the expected annual return divided by 12, and n the number of monthly instalments.
Worked example
A ₹10,000 monthly SIP for 10 years (120 instalments) at 12% a year gives i = 1%. (1.01)120 = 3.3004, so M = 10,000 × 230.04 × 1.01 ≈ ₹23,23,391. You invest ₹12,00,000 and the estimated returns are ₹11,23,391 – almost doubling your money.
₹5,000 a month at 12% over different periods
| Period | Invested | Approx. value |
|---|---|---|
| 5 years | ₹3,00,000 | ₹4,12,000 |
| 10 years | ₹6,00,000 | ₹11,62,000 |
| 20 years | ₹12,00,000 | ₹49,96,000 |
Doubling the time more than quadruples the value – that is compounding at work.
Tips for SIP investors
- Start early and stay invested through market dips; stopping a SIP in a downturn locks in losses.
- Use a step-up SIP to raise the instalment as your salary grows.
- Compare direct plans, which have lower expense ratios than regular plans.
- Match the fund type to the goal: equity for long horizons, debt or hybrid for shorter ones.
The figures shown are estimates – actual mutual fund returns vary every year and are subject to market risk.
Estimates for educational purposes, not financial advice.
Frequently asked questions
How is SIP maturity calculated?
With the future value of an annuity due: M = P × ((1 + i)ⁿ − 1) ÷ i × (1 + i), where P is the monthly instalment, i the annual return ÷ 12 and n the number of months. Each instalment earns returns from the month it is invested.
What return should I expect from an equity SIP?
Returns are not guaranteed. Diversified Indian equity funds have historically delivered roughly 10–14% a year over long periods, while debt funds are closer to 6–8%. Use a conservative figure for planning.
Is SIP better than a lump sum?
SIP spreads purchases over time (rupee cost averaging), reducing the risk of investing everything at a market peak, and suits monthly salaries. A lump sum can do better in a steadily rising market.
Are SIP returns taxable?
Yes. Gains on equity funds held over a year are taxed as long-term capital gains above an annual exemption; shorter holdings and debt funds are taxed differently. Check the current rules or ask a tax adviser.