How to use the SIP calculator
Enter the amount you plan to invest every month, the yearly return you expect and how many years you will stay invested. The result updates as you move the sliders. Add a yearly step-up if you plan to raise your SIP as your income grows.
For example, ₹5,000 a month for 10 years at 12% grows to about ₹11.62 lakh, of which ₹6 lakh is your own money and ₹5.62 lakh is growth. Raise the same SIP by 10% every year and it reaches about ₹16.87 lakh.
How SIP returns are calculated
Each instalment is invested at the start of the month and compounds every month until the end of the period. Without a step-up, the total is:
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i)
- P is the monthly SIP amount
- i is the monthly rate: yearly return ÷ 12 ÷ 100
- n is the number of months
With a step-up, the calculator works month by month and raises the instalment once every 12 months.
What return should you assume?
Use a conservative figure. Large-cap and index funds have historically returned roughly 10–12% a year over long periods, mid- and small-cap funds more but with bigger swings, and debt funds around 6–7.5%. Actual returns vary year to year and are not guaranteed, so plan with a lower rate and treat anything extra as a bonus.
Tips to get more from your SIP
- Start early: ten extra years matter more than a higher amount.
- Step up every year, even by 5–10%.
- Stay invested through market falls; you buy more units when prices are low.
- Pick direct plans to save 0.5–1.5% a year in commission.
Frequently asked questions
How does a SIP calculator work?
It assumes you invest the same amount at the start of every month and that the fund earns a constant yearly return, compounded monthly. It adds up every instalment and its growth to show the value at the end of the period.
What formula is used to calculate SIP returns?
Future value = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the monthly SIP, i is the yearly return ÷ 12 ÷ 100, and n is the number of months. With a step-up, the instalment is raised once a year and the calculation runs month by month.
How much SIP do I need to make ₹1 crore?
At an assumed 12% yearly return, about ₹10,000 a month for 20 years grows to roughly ₹1 crore. Over 15 years you would need about ₹20,000 a month, and over 25 years about ₹5,300 a month.
Are SIP returns guaranteed?
No. Mutual fund returns depend on the market. The calculator shows what happens at a steady rate; real returns go up and down from year to year.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly amount by a fixed percentage every year. Raising a ₹5,000 SIP by 10% a year can nearly double the final amount over 20 years compared with a flat SIP.
How are SIP gains taxed?
For equity funds, gains on units held over 12 months are long-term and taxed at 12.5% on gains above ₹1.25 lakh a year. Units sold within 12 months are taxed at 20%. Each SIP instalment has its own holding period.
Last reviewed: 13-10-2026. Rates and rules are checked against official sources; tell us if something has changed. Contact