SIP Calculator
Calculate expected future returns on your mutual fund Systematic Investment Plan (SIP) with support for compounding and annual step-up contributions.
| Year | Monthly SIP | Invested in Year | Total Invested | Year-End Value |
|---|---|---|---|---|
| 1 | ₹5,000.00 | ₹60,000.00 | ₹60,000.00 | ₹64,046.64 |
| 2 | ₹5,000.00 | ₹60,000.00 | ₹1,20,000.00 | ₹1,36,216.00 |
| 3 | ₹5,000.00 | ₹60,000.00 | ₹1,80,000.00 | ₹2,17,538.24 |
| 4 | ₹5,000.00 | ₹60,000.00 | ₹2,40,000.00 | ₹3,09,174.17 |
| 5 | ₹5,000.00 | ₹60,000.00 | ₹3,00,000.00 | ₹4,12,431.83 |
| 6 | ₹5,000.00 | ₹60,000.00 | ₹3,60,000.00 | ₹5,28,785.15 |
| 7 | ₹5,000.00 | ₹60,000.00 | ₹4,20,000.00 | ₹6,59,894.99 |
| 8 | ₹5,000.00 | ₹60,000.00 | ₹4,80,000.00 | ₹8,07,632.83 |
| 9 | ₹5,000.00 | ₹60,000.00 | ₹5,40,000.00 | ₹9,74,107.53 |
| 10 | ₹5,000.00 | ₹60,000.00 | ₹6,00,000.00 | ₹11,61,695.38 |
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Как это работает
Формула
FV = P × (1 + i)^n - 1 / i × (1 + i), i = r / 1200 Пример расчета
Investing ₹5,00,000 monthly at a 12% expected annual return over 10 years (120 installments) requires an investment of ₹6,00,000 and accumulates to an estimated maturity corpus of ₹11,61,695, earning ₹5,61,695 in compounding returns.
Building Long-Term Wealth Through Systematic Investment Plans
A Systematic Investment Plan (SIP) is widely regarded as one of the most effective tools for retail wealth creation. Rather than attempting to predict short-term stock market peaks and troughs, a monthly SIP harnesses rupee cost averaging and compound interest to grow your savings steadily over multi-year horizons.
Whether planning for retirement, purchasing a home, or funding higher education, automating your monthly investments removes emotional decision-making from personal financial management.
The Mathematics of SIP Compounding
When you invest at the beginning of each monthly cycle, your investment matures according to the future value of an annuity due formula:
$$\text{FV} = P \times \frac{(1 + i)^n - 1}{i} \times (1 + i)$$
Where:
- $P$ is your regular monthly SIP installment (e.g., ₹5,000)
- $i$ is the periodic monthly rate of return ($\text{Annual Expected Return } % / 1200$)
- $n$ is the total number of monthly contributions ($10 \text{ years} \times 12 = 120 \text{ months}$)
Because each monthly deposit compounds for a different duration—the first installment compounds for 120 months, while the final installment compounds for just 1 month—the formula aggregates the geometric progression of all contributions.
Worked Example: The Compounding Trajectory of ₹5,000 / Month
To observe the non-linear growth curve of compounding, evaluate a ₹5,000 monthly SIP earning an expected 12% annualized return over 10 years:
- Total Principal Invested: ₹6,00,000 ($120 \times ₹5,000$)
- Estimated Growth (Gains): ₹5,61,695
- Final Maturity Wealth: ₹11,61,695
Notice how compounding accelerates exponentially over extended timeframes:
- At 10 Years: Capital of ₹6 Lakhs grows to ₹11.62 Lakhs.
- At 15 Years: Capital of ₹9 Lakhs expands to ₹25.23 Lakhs (gains exceed invested capital by nearly 2x).
- At 20 Years: Capital of ₹12 Lakhs surges to ₹49.96 Lakhs (over ₹37 Lakhs in pure compound interest!).
The Transformative Impact of Annual Step-Up
Salaried professionals typically receive annual compensation increments. By implementing a 10% Annual Step-Up (increasing your ₹5,000 monthly SIP to ₹5,500 in Year 2, ₹6,050 in Year 3, and so forth), your 15-year maturity value leaps from ₹25.2 Lakhs to over ₹40.8 Lakhs.
Key Rules for Disciplined SIP Investing
- Avoid Pausing During Market Corrections: Market dips are precisely when your SIP accumulates more mutual fund units at discounted Net Asset Values (NAV). Pausing investments during drawdowns neutralizes the primary benefit of rupee cost averaging.
- Align Asset Class with Investment Horizon: For goals within 3 years, prefer debt or arbitrage funds; for goals beyond 7 to 10 years, diversified equity index and flexi-cap funds offer superior inflation-beating potential.
- Factor in Long-Term Capital Gains (LTCG) Taxes: Plan your redemptions efficiently to utilize annual tax exemption allowances under Indian tax codes.
For daily micro-investing alternatives, explore our daily sip calculator; to plan post-retirement withdrawals, see our swp calculator. Detailed information on financial algorithms is available on our methodology page.
Часто задаваемые вопросы
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan is a disciplined investment route that allows you to invest a fixed predetermined sum into a mutual fund scheme at regular monthly or quarterly intervals rather than committing a lump sum.
What is Rupee Cost Averaging and how does it benefit SIP investors?
Rupee cost averaging eliminates the need to time market cycles. When markets decline, your fixed SIP installment purchases more fund units; when markets rally, you buy fewer units. Over time, this lowers your average acquisition cost per unit.
What is an annual Step-Up SIP?
A Step-Up (or Top-Up) SIP automatically increases your monthly investment contribution by a fixed percentage (e.g., 10%) each year, helping your investments keep pace with career salary increments and inflation.
Are mutual fund SIP returns guaranteed?
No. Mutual fund investments are subject to market risks. Equity mutual funds historically deliver between 11% and 15% annualized returns over 10+ year horizons, but returns fluctuate based on market conditions.
How are capital gains on equity mutual fund SIPs taxed in India?
Under current Indian tax provisions, each monthly SIP installment is treated as an independent investment. Equity fund gains held for over 12 months qualify as Long-Term Capital Gains (LTCG) taxed at 12.5% above a ₹1.25 Lakh annual exemption limit.