SIP Calculator (India)
Calculate SIP (Systematic Investment Plan) returns for Indian mutual funds with monthly investments, expected returns, and tenure. Get maturity corpus, total investment, returns, and growth charts.
About This Calculator
A Systematic Investment Plan (SIP) is one of the most popular investment methods in India for building wealth through mutual funds. By investing a fixed amount every month, you benefit from rupee cost averaging — buying more units when markets are low and fewer when markets are high. This reduces the impact of market volatility and eliminates the need to time the market.
This SIP India calculator uses the standard future value formula for SIP investments: FV = P × [((1 + r)^n − 1) / r] × (1 + r), where P is the monthly investment amount, r is the monthly expected return rate (annual return ÷ 12 ÷ 100), and n is the total number of months. The calculator compounds the returns monthly, which is the standard for mutual fund NAV calculations in India.
For example, a ₹5,000 monthly SIP at 12% expected annual returns for 10 years (120 months) grows to approximately ₹11.6 lakh — with ₹6 lakh invested and ₹5.6 lakh in returns. The power of compounding becomes more evident over longer tenures; the same ₹5,000 SIP for 20 years grows to approximately ₹50 lakh with over ₹25 lakh in returns.
Regional Notes
India: SIPs are available through all major mutual fund houses (SBI Mutual Fund, HDFC Mutual Fund, ICICI Prudential, Nippon India, Kotak Mahindra, etc.) and investment platforms (Zerodha Coin, Groww, Paytm Money, Kuvera). Minimum SIP amounts start at ₹500. Equity-linked savings scheme (ELSS) SIPs offer tax benefits under Section 80C up to ₹1.5 lakh per year with a 3-year lock-in period. Capital gains from equity mutual funds held over 1 year are taxed at 10% above ₹1 lakh (LTCG).
US: The equivalent of SIP is dollar-cost averaging into mutual funds or ETFs. US investors can set up recurring investments into index funds like VOO or VTI. Typical long-term S&P 500 returns are 8-10% annually. Capital gains are taxed based on holding period (short-term vs long-term).
UK: UK investors can use regular savings plans into unit trusts or OEICs. ISAs allow tax-free growth up to £20,000 per year. Typical FTSE 100 historical returns are 6-8% annually.
Frequently Asked Questions
What is SIP and how does a SIP calculator work?
SIP (Systematic Investment Plan) is a method of investing a fixed amount in mutual funds at regular intervals, typically monthly. A SIP calculator uses the future value formula FV = P × [((1 + r)^n − 1) / r] × (1 + r) where P is the monthly investment, r is the monthly expected return rate (annual rate ÷ 12), and n is the total number of months. It projects the maturity corpus, total investment, and total returns with a yearly breakdown.
What is the average SIP return in India?
In India, large-cap equity mutual funds have historically delivered 10-14% annual returns over the long term, mid-cap funds 12-16%, and small-cap funds 14-18%. Debt mutual funds typically return 6-9% annually. A conservative estimate of 12% is commonly used for long-term SIP planning. Past performance does not guarantee future returns.
What is the minimum amount to start a SIP in India?
Most mutual funds in India allow SIP investments starting from as low as ₹500 per month. Some funds offer micro-SIPs starting at ₹100. There is no upper limit — you can invest any amount in multiples of the minimum installment. ELSS funds (tax-saving mutual funds) have a minimum SIP of ₹500 with a 3-year lock-in period.
How does compounding benefit SIP investments?
Compounding in SIP works by generating returns on both the invested principal and the accumulated returns from previous periods. As your investment grows, the absolute returns grow exponentially over time. Starting early maximizes the compounding effect — a ₹5,000 monthly SIP at 12% returns for 20 years grows to approximately ₹50 lakh, with over ₹25 lakh in pure returns.
Can I use this SIP calculator for US or UK investments?
While this calculator is designed for Indian investors using INR, the mathematical formula works for any currency. For US-based investments, use the expected S&P 500 historical return of 8-10%. For UK investments, use 6-8% based on FTSE 100 historical performance. The calculator will show results in your entered currency.
What happens if I stop my SIP midway?
If you stop a SIP before the planned tenure, the accumulated units remain invested and continue to grow or decline with market movements. You can redeem them at any time (except for lock-in funds like ELSS). However, stopping early reduces the compounding benefit significantly — the last years of a SIP contribute the most to the final corpus.
What is the difference between SIP and lump sum investment?
In SIP, you invest a fixed amount periodically (usually monthly), which averages out the purchase cost through market ups and downs (rupee cost averaging). Lump sum involves investing the entire amount at once. SIP is recommended for volatile equity markets as it reduces timing risk, while lump sum suits stable investments like FDs or when markets are undervalued.