Skip to content
Toolore

Calculators

SIP Calculator

Enter how much you invest each month, the return you expect and for how long. Add a step-up to see what raising the SIP every year does — at the same assumed return, it often changes the outcome more than a small difference in that return.

An assumption, not a promise — see the notes below

How much you raise the SIP each year. Leave blank for none.

Enter a monthly amount, an expected return and a period to see the estimated value.

How to use this tool

  1. Enter the amount you invest every month.
  2. Enter the annual return you expect. This is an assumption: use a conservative figure, and try a few to see the range.
  3. Enter how many years you plan to keep investing.
  4. Optionally enter a step-up — the percentage by which you raise the SIP each year, for example 10% as your income grows.
  5. Read the estimated value and returns. The year-by-year table shows how returns start to exceed your own contributions later in the plan.

Formula and method

Flat SIP

FV = P × ((1 + i)^n − 1) ÷ i × (1 + i)
P
— monthly instalment
i
— monthly return = annual return ÷ 12 ÷ 100
n
— number of monthly instalments

The final (1 + i) term is there because an SIP instalment is invested at the start of each month and earns that month's return. This is the convention most Indian fund-house SIP calculators follow.

Step-up SIP

Instalment in year k = P × (1 + s)^(k − 1)
s
— yearly step-up as a decimal

There is no tidy closed formula once the instalment changes, so the value is built month by month: each instalment is added and the whole balance grows by i. With a step-up of zero this gives exactly the flat-SIP figure.

Worked examples

₹10,000 a month for 10 years at 12%

  1. Monthly return: 12 ÷ 12 ÷ 100 = 0.01
  2. Instalments: 10 × 12 = 120
  3. (1.01)^120 = 3.30039
  4. FV = 10,000 × (3.30039 − 1) ÷ 0.01 × 1.01 = ₹23,23,391

About ₹23.2 lakh from ₹12 lakh invested — roughly ₹11.2 lakh of estimated returns.

The same SIP with a 10% step-up each year

  1. Year 1: ₹10,000 a month; year 2: ₹11,000; year 10: about ₹23,579
  2. Total invested rises to about ₹19.1 lakh
  3. Estimated value: about ₹33.7 lakh

The step-up adds around ₹10.5 lakh to the final value at the same assumed return.

Notes and limitations

  • Mutual fund investments are subject to market risks, and returns are not fixed. A real SIP will not grow at a steady rate — some years fall — so the result is an illustration of what a given average return would produce, not a forecast.
  • Past returns of a fund or index are not a reliable guide to future returns. It is sensible to try a lower rate than a fund's recent history.
  • The figure is before tax, exit loads and expense ratio. Direct plans have lower expense ratios than regular plans, which matters over long periods.
  • Gains on redemption are taxed as capital gains, and the rate depends on the fund type and how long each instalment was held. Check the current rules for your fund category.

Frequently asked questions

What return should I assume for an SIP?

There is no correct figure. Many people use 10–12% for diversified equity funds over long periods and 6–8% for debt funds, but actual returns have ranged well above and below that. Running the calculator at a few different rates is more honest than relying on one.

Is an SIP better than a lump sum?

In a market that rises steadily, a lump sum invested on day one earns more, because more money is invested for longer. An SIP spreads the entry price over time and suits people investing from monthly income. The choice is usually decided by when you have the money, not by the maths.

What is a step-up SIP?

An SIP whose instalment increases by a set percentage every year. Most fund houses let you set this up once. It keeps your investment in line with salary increases without having to start new SIPs.

Why is my SIP value lower than this calculator shows?

Because the fund's actual returns have differed from the assumed rate, and because returns arrive unevenly. A market fall near the end of the period reduces the value much more than one at the start, when less money was invested.

Does the calculator include the expense ratio?

No. Enter a return net of the fund's expense ratio if you want to account for it — for example, 11.3% instead of 12% for a fund charging 0.7% a year.

Related tools