SIP Calculator
A SIP — Systematic Investment Plan — is just a standing instruction: the same amount leaves your bank on the same date every month and buys units of a mutual fund. The reason it works isn't clever timing. It's that you keep buying while prices are low, which is exactly when nobody feels like buying.
This calculator shows you the number that actually matters: what a fixed monthly habit turns into after compounding has had years to work on it. Move the time period slider and watch what happens between year 10 and year 20 — the gap is far wider than most people expect, and that gap is the entire argument for starting now rather than starting bigger.
How it works
- 01Each monthly instalment is treated as its own investment that compounds until the end date — so your first instalment grows for the full period, and your last one grows for a month.
- 02The standard future-value-of-an-annuity formula does this in one step: FV = P × ((1+i)ⁿ − 1) ÷ i × (1+i), where P is your monthly amount, i is the monthly return, and n is the number of instalments.
- 03"Market added" is simply maturity value minus everything you put in. In a long SIP this number usually ends up larger than your own contributions — that crossover is the whole point.
Frequently asked
What return should I actually enter?+
For a diversified equity index fund, 10–12% is a defensible long-run assumption. For hybrid funds, 8–10%. For debt funds, 6–7%. Whatever you pick, it is an assumption, not a promise — run the numbers again at a lower rate and make sure the plan still works if markets underperform.
Is it better to invest ₹5,000 for 20 years or ₹10,000 for 10 years?+
You pay in the same ₹12 lakh either way, but at 12% the 20-year SIP finishes roughly twice as large. Time in the market does more heavy lifting than the size of the cheque. Try both in the calculator above — the comparison is worth seeing once.
Can I stop or pause a SIP?+
Yes. SIPs have no lock-in unless you specifically chose an ELSS tax-saving fund, which locks each instalment for three years. You can pause, reduce or cancel any other SIP online, usually with a few days notice.
Does this account for tax?+
No — it shows the pre-tax maturity value. Gains are taxed when you actually redeem, and the rate depends on the fund type and how long you held it. Treat the result as your gross number and check the current rules before you sell.
What is a step-up SIP?+
One where you raise the instalment every year, usually in line with your salary. It is the single highest-leverage change most people can make: increasing a SIP 10% a year often beats chasing a 2% better return, and it costs you nothing today.