Is the 12% return guaranteed?

No. Mutual fund returns depend on markets and are not guaranteed. The calculator shows what happens if the average return equals the rate you enter.

What is a step-up SIP?

A SIP whose instalment rises by a fixed percentage every year, for example 10%. It lets you start small and grow the investment with your income.

Why does the calculator multiply by (1 + i)?

Because SIP instalments are invested at the start of each month, so each one earns an extra month of growth. Indian AMC calculators use the same convention.

Can I lose money in a SIP?

Yes. A SIP reduces timing risk but does not remove market risk. Over short periods an equity SIP can be worth less than the amount invested.

How long should I continue a SIP?

Match it to the goal. For equity funds most guidance suggests at least five to seven years, because short-term swings tend to even out over longer periods.

Financial · Free tool

SIP Calculator

See what a monthly mutual fund SIP could grow to — with optional yearly step-up.

A Systematic Investment Plan (SIP) invests a fixed amount into a mutual fund every month. Because each instalment buys units at that month's price, you buy more units when markets are low and fewer when they are high — the effect SEBI and fund houses call rupee cost averaging. Over long periods, the real engine is compounding: returns earned in early years start earning returns of their own.

This SIP calculator projects the value of those monthly instalments at an expected yearly return. It uses the same convention as Indian fund-house and bank calculators — each instalment is invested at the start of the month and grows at one-twelfth of the annual rate — so its numbers line up with what you see on AMC websites. Add an annual step-up to model raising your SIP by a fixed percentage every year.

The output is an estimate, not a promise. Equity fund returns vary year to year and can be negative over short spans. Use the tool to compare scenarios — a longer horizon, a bigger instalment, a yearly step-up — rather than to predict a precise rupee figure.

By DailyCalc Editorial Team · Updated 2026-10-03 · 7-min read · 3 sources cited

● SIP calculator

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SIP future value formula

FV = P × [((1 + i)ⁿ − 1) ÷ i] × (1 + i), i = annual return ÷ 12 ÷ 100, n = months

This is the future value of an annuity due: n equal payments, each made at the start of a period and compounding at rate i per month. The final × (1 + i) reflects that every instalment earns one extra month of growth because it is invested at the start of the month. With a step-up, the instalment rises by the step-up percentage after every 12 payments, so the calculator adds the months one by one instead of using the closed formula.

P: Monthly SIP instalment (₹10,000 in the example).
i: Expected monthly return: 12% a year → 0.01 a month.
n: Number of monthly instalments: years × 12.
FV: Estimated value of the investment at the end of the period.

Worked example: ₹10,000 a month at 12% for 10 years

A salaried investor starts a ₹10,000 SIP in an equity fund and assumes a 12% long-run return:

Monthly rate i = 12 ÷ 12 ÷ 100 = 0.01; instalments n = 10 × 12 = 120.
(1.01)¹²⁰ ≈ 3.3004, so ((1.01)¹²⁰ − 1) ÷ 0.01 ≈ 230.04.
Multiply by (1 + i) for start-of-month investing: 230.04 × 1.01 ≈ 232.34.
FV = 10,000 × 232.34 ≈ ₹23,23,391. Amount invested = 10,000 × 120 = ₹12,00,000.
Estimated gains = ₹23,23,391 − ₹12,00,000 = ₹11,23,391 — more than 93% on top of what was paid in.
With a 10% yearly step-up the same start grows to about ₹33,74,326 on ₹19,12,491 invested.

Result: ₹10,000/month at 12% for 10 years ≈ ₹23.23 lakh (₹12 lakh invested + ₹11.23 lakh estimated gains).

How to use this SIP calculator

Four inputs, all of which you can change to compare plans side by side.

Step 1: Enter your monthly SIP

The amount debited every month. Most funds accept SIPs from ₹100–₹500 upward.

Step 2: Choose an expected return

Use a conservative long-run figure for the fund type — lower for debt or hybrid funds, higher for equity — and try a pessimistic case too.

Step 3: Set the duration in years

Whole years from 1 to 50. Compounding rewards time far more than amount, so test 10, 15 and 20 years.

Step 4: Add a step-up (optional)

The percentage you will raise the SIP by each year, often in line with expected salary increases. Leave 0 for a flat SIP.

When a SIP projection helps

Typical goals people plan with this calculator:

Retirement corpus

₹5,000 a month for 20 years at 12% projects to about ₹49.96 lakh on ₹12 lakh invested; stopping at 15 years gives only about ₹25.23 lakh. The last five years nearly double the pot.

Child's education

Work backwards from a target: if you need ₹50 lakh in 15 years at 12%, a ₹10,000 SIP gets you to about ₹50.46 lakh.

Comparing fund types

Run the same SIP at 8% and 12%. Over 10 years ₹10,000 a month becomes about ₹18.42 lakh at 8% versus ₹23.23 lakh at 12% — that gap is the price of lower risk.

Testing a step-up

A 10% yearly step-up on a ₹10,000 SIP adds about ₹10.5 lakh to the 10-year value — usually easier than starting with a bigger instalment.

Lump sum vs SIP

Pair with our compound interest calculator to compare investing a bonus at once against spreading it over 12 monthly SIPs.

Pro tips

Habits that matter more than the fund you pick:

Start early: each year of delay costs more than the same year added at the end, because early instalments compound longest.
Automate a step-up on the SIP mandate so the increase happens without a decision every year.
Do not stop SIPs in a market fall — those instalments buy units cheaply, which is exactly where rupee cost averaging helps.
Compare the direct plan and the regular plan of the same fund; the lower expense ratio of a direct plan compounds in your favour.
Review once a year against your goal, not every week against the market.

Common mistakes

Errors that make SIP projections misleading:

Treating the return as guaranteed

12% is an assumption. Equity returns over any 3–5 year window can be far lower or negative; plan with a conservative rate and a margin of safety.

Ignoring inflation

₹23 lakh in 10 years will buy less than ₹23 lakh today. Subtract expected inflation from the return to see the result in today's money.

Forgetting costs and tax

The projection is before expense ratios, exit loads and capital gains tax. Check the fund's factsheet and current tax rules before relying on the figure.

Comparing XIRR with CAGR

SIP returns are measured as XIRR because money goes in on many dates. Do not compare a SIP's XIRR directly with a lump sum's CAGR.

Sources & references

The formula, thresholds and guidance on this page were checked against these primary sources. Written and reviewed by DailyCalc Editorial Team; last updated 2026-10-03. Spotted an error? Tell us.

Disclaimer: Illustrative only — not investment advice. Mutual fund investments are subject to market risks; returns are not guaranteed and past performance does not indicate future results. Read the scheme documents and consider a SEBI-registered adviser.

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