What is a SIP?
A Systematic Investment Plan (SIP) is a way of investing a fixed amount into a mutual fund at regular intervals — usually every month — instead of committing a large sum all at once. It turns investing into a disciplined habit: the money is deducted automatically, buying fund units at whatever the price is on that date.
Because you invest through market ups and downs, a SIP quietly does two powerful things for you: rupee-cost averaging (you buy more units when prices are low and fewer when they are high) and compounding (your returns start earning their own returns). Over a long horizon, these effects do most of the heavy lifting.
The three numbers a SIP calculator gives you
The SIP formula, explained
A regular SIP is a series of equal payments, so its future value follows the annuity formula:
FV = P × [ (1 + i)n − 1 ] / i × (1 + i)
- P — the amount you invest each month
- i — the monthly rate of return (annual rate ÷ 12 ÷ 100)
- n — the total number of monthly instalments
The final (1 + i) term reflects that each instalment is invested at the start of the month, so it earns growth for that month too. Our calculator runs this month by month, which also lets it handle an annual step-up cleanly and build the year-by-year table.
Worked example
Invest ₹25,000 a month for 10 years at an assumed 12% annual return. You contribute ₹30,00,000 in total, but the estimated corpus is roughly ₹58 lakh — so almost half of the final value comes from growth, not from your own pocket.
SIP vs lumpsum: which is better?
A lumpsum invests one large amount today and lets it compound: FV = P × (1 + r)t. A SIP spreads smaller amounts over time. Neither is universally better — it depends on how much cash you have and how the market behaves.
Use the mode toggle in the calculator to compare both with the same rate and horizon.
Step-up SIP: grow with your income
A step-up (or top-up) SIP increases your monthly contribution by a fixed percentage each year. Since your salary usually rises over time, a 10% annual step-up often feels painless — yet it can add a surprisingly large amount to your final corpus, because the extra money also gets the full benefit of compounding.
Flat SIP
Same amount every month — simple and predictable.
10% step-up
Contribution rises yearly, tracking income growth.
Bigger corpus
More invested early means more time to compound.
Don't forget inflation
A corpus of ₹1 crore in 20 years will not buy what ₹1 crore buys today. The calculator's inflation-adjusted value discounts your future corpus back to today's purchasing power, so you can judge whether a goal is really funded. When planning for retirement or a child's education, always look at the inflation-adjusted number, not just the headline total.
How to use the SIP calculator
- Pick Monthly SIP or One-time Lumpsum and choose your currency.
- Enter the amount you can invest, using the slider or the input box.
- Set an expected return rate. Equity funds are often modelled around 10–12%; be conservative for debt.
- Choose your time period — longer horizons make compounding far more powerful.
- Optionally add an annual step-up and switch on inflation adjustment.
- Read off the total value, estimated returns, and the year-by-year growth table.
A few honest caveats
- The calculator assumes a constant return. Real markets are volatile and never grow in a straight line.
- Mutual fund returns are not guaranteed — past performance does not predict future results.
- It does not account for expense ratios, exit loads, or taxes such as capital gains tax.
- Treat the output as a planning estimate, not a promise. Review your plan yearly and adjust as life changes.
Plan your investment now
Enter your monthly amount, expected return, and horizon to see your projected corpus, estimated returns, and a full year-by-year breakdown in seconds.
Open the SIP Calculator →