Tip
Show year-wise growth
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Use this free SIP Calculator to estimate how much your monthly mutual fund SIP can grow over time. See the total value, how much you invested, your estimated returns, and what that money will be worth in today’s terms after inflation. All calculations happen on your phone, so your numbers stay private.
What is a SIP?
A Systematic Investment Plan (SIP) is a way to invest a fixed amount in a mutual fund every month, usually through an automatic debit from your bank account. Instead of investing a large amount at once, you invest small amounts regularly, for example ₹2,000 or ₹5,000 a month.
Each month your SIP buys units of the fund at that day’s price (NAV). When markets are low, the same amount buys more units; when markets are high, it buys fewer. Over time this averages out your purchase cost. This is called rupee cost averaging.
How is SIP return calculated?
This calculator uses the standard future value formula used by most Indian SIP calculators:
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i)
- P = monthly SIP amount
- i = monthly rate of return (annual rate ÷ 12 ÷ 100)
- n = number of monthly instalments (years × 12)
Example
Suppose you invest ₹5,000 every month for 20 years and your fund earns an average of 12% a year:
- Total amount invested = ₹5,000 × 240 = ₹12 lakh
- Estimated value after 20 years = about ₹49.96 lakh
- Estimated returns = about ₹37.96 lakh, more than three times what you put in
The power of time
With SIPs, time matters more than the amount. Here is how ₹5,000 a month grows at 12% a year:
| Period | You invest | Estimated value |
|---|---|---|
| 5 years | ₹3 lakh | ₹4.12 lakh |
| 10 years | ₹6 lakh | ₹11.62 lakh |
| 15 years | ₹9 lakh | ₹25.23 lakh |
| 20 years | ₹12 lakh | ₹49.96 lakh |
| 25 years | ₹15 lakh | ₹94.88 lakh |
Look at the last two rows. Investing for 5 more years adds only ₹3 lakh of your own money, but the final value almost doubles. That is compounding at work, and it is why starting early is the single best SIP decision you can make.
How much does the return rate matter?
Returns from mutual funds are not fixed. Here is the same ₹5,000 monthly SIP for 20 years at different average returns:
| Average return | Estimated value |
|---|---|
| 8% a year | ₹29.65 lakh |
| 10% a year | ₹38.28 lakh |
| 12% a year | ₹49.96 lakh |
| 14% a year | ₹65.82 lakh |
Because returns can vary, it is wise to plan with a conservative rate. Many planners use 10–12% for long-term equity funds and lower rates for debt or hybrid funds.
Don’t forget inflation
₹50 lakh after 20 years will not buy what ₹50 lakh buys today. If prices rise by 6% a year, ₹49.96 lakh in 20 years is worth only about ₹15.6 lakh in today’s money. That is why this calculator also shows the inflation-adjusted value. Use it to set realistic goals for your child’s education, a house or retirement.
Banker’s tips for SIP investors
- Start now, even with a small amount. ₹1,000 a month started today often beats ₹3,000 a month started 10 years later.
- Increase your SIP every year. Raise it when your salary goes up. Try our Step-Up SIP Calculator to see the difference.
- Stay invested when markets fall. Falling markets let your SIP buy more units cheaply. Stopping your SIP in a fall is the most common mistake.
- Match the fund to your goal. Equity funds suit goals 7+ years away; for short-term goals, consider safer options such as RD or FD.
- Keep an emergency fund first. Keep 6 months of expenses in a savings account or FD so you never have to break your SIP.
- Review once a year, not every day.
Frequently asked questions
Are SIP returns guaranteed?
No. Mutual fund investments are subject to market risks, and returns depend on how the fund performs. This calculator assumes a constant average return for planning only; actual returns will go up and down.
What is the minimum amount for a SIP?
Many mutual funds allow SIPs from ₹100 to ₹500 a month. Check the minimum amount for the specific fund you choose.
Can I stop or pause my SIP?
Yes. Most open-ended funds let you stop or pause a SIP at any time without penalty. However, some funds charge an exit load if you withdraw units within a short period, usually one year.
Is SIP better than FD?
They serve different purposes. FD gives fixed, guaranteed interest and suits short-term or safe money. Equity SIPs carry market risk but have the potential for higher returns over long periods. Many families use both. Compare them with our Compare Investments tool.
How are SIP returns taxed?
Tax depends on the type of fund and how long you hold each instalment. Since tax rules change, please check the current rules or ask a tax advisor before redeeming.
Related calculators
- Step-Up SIP Calculator – increase your SIP every year
- FD Calculator – guaranteed returns on fixed deposits
- Retirement Calculator – how much you need to retire
Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. The figures above are illustrations, not a promise of returns.