Use this calculator to estimate how your monthly mutual fund SIP (Systematic Investment Plan) can grow over time. Enter your monthly investment, an expected annual return, and your investment period to see your estimated corpus. You can also add a yearly step-up to your SIP amount.
| Year | Monthly SIP That Year | Total Invested So Far | Estimated Value at Year End |
|---|
This calculator assumes your SIP amount is invested at the start of each month and grows at a constant assumed rate of return, compounded monthly. Actual mutual fund returns fluctuate with the market and are never guaranteed or constant, so treat this as a planning estimate rather than a forecast.
What Is a SIP?
A Systematic Investment Plan, or SIP, is a way of investing a fixed amount into a mutual fund every month, instead of investing a large sum all at once. It is one of the most popular ways Indians invest in equity and debt mutual funds, since it builds a disciplined saving habit and averages out the ups and downs of the market over time.
Why the Return Rate in This Calculator Is Not Fixed
Unlike government schemes such as PPF or NSC, where the interest rate is fixed and guaranteed, mutual fund returns depend entirely on how the market performs. There is no official or promised rate of return for a SIP. The rate you enter in this calculator is simply an assumption for planning purposes, often based on the historical long-term average of the type of fund you plan to invest in. Your actual returns could be higher or lower, and in poor market conditions, could even be negative over shorter periods.
How This Calculator Works
Enter your monthly SIP amount, an assumed annual return rate, and how many years you plan to invest. If you plan to increase your SIP amount every year as your income grows, enter a step-up percentage as well — otherwise leave it at 0% for a regular fixed SIP. The calculator shows your total investment, the estimated returns generated, and your total estimated corpus at the end of the period. Click the button to see how your investment and corpus grow year by year.
What Is a Step-Up SIP?
A step-up SIP, also called a top-up SIP, is where you increase your monthly investment amount by a fixed percentage every year, rather than keeping it constant for the entire period. For example, a step-up SIP starting at Rs 10,000 per month with a 10% annual step-up becomes about Rs 11,000 per month in year 2, about Rs 12,100 per month in year 3, and so on. This approach lets your investment grow in line with your income over time and can meaningfully increase your final corpus compared to a flat SIP of the same starting amount.
How SIP Returns Are Taxed
| Fund Type | Holding Period | Tax Treatment |
|---|---|---|
| Equity Mutual Fund | More than 12 months (LTCG) | 12.5% on gains above Rs 1.25 lakh per year |
| Equity Mutual Fund | Up to 12 months (STCG) | 20% flat on the gain |
| Debt Mutual Fund | Any holding period | Taxed at your income tax slab rate |
| ELSS (Tax-Saving Fund) | Minimum 3-year lock-in | Section 80C deduction up to Rs 1.5 lakh, then equity LTCG rules apply |
Each SIP instalment is treated as a separate investment for tax purposes, with its own holding period counted from the date it was invested. This means if you redeem your entire SIP investment at once, the units bought earliest may qualify for long-term treatment while your most recent instalments may still be classified as short-term.
SIP vs Lump Sum — Which Is Better
A lump sum investment can slightly outperform a SIP in a market that rises steadily, since the full amount is invested and working from day one. A SIP tends to work better in a volatile or sideways market, since it buys more units when prices are low and fewer when prices are high, averaging out your purchase cost over time. For most individual investors without a large lump sum ready to invest, a SIP is the more practical and disciplined approach, since it removes the pressure of trying to time the market.
What Return Should You Assume for SIP Planning?
Since mutual fund returns are not guaranteed, there is no single correct return assumption. The expected return depends on the type of mutual fund you invest in and the length of time you remain invested.
| Fund Category | Typical Long-Term Return Range |
|---|---|
| Liquid Funds | 5% to 7% |
| Short Duration Debt Funds | 6% to 8% |
| Hybrid Funds | 8% to 11% |
| Large Cap Equity Funds | 10% to 13% |
| Flexi Cap Funds | 11% to 14% |
| Mid Cap Funds | 12% to 16% |
| Small Cap Funds | 13% to 18% |
These figures are historical ranges only and should not be treated as future guarantees. Actual returns can be significantly higher or lower depending on market conditions.
Frequently Asked Questions
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