How to use the SIP calculator
- Enter how much you want to invest every month.
- Choose an expected yearly return; 10–12% is a common long-term assumption for equity funds.
- Set how many years you plan to stay invested.
- Read the estimated value, the returns and the value in today's money.
- Check the year-by-year table to see compounding at work.
SIP formula
FV = P × ((1 + i)n − 1) ÷ i × (1 + i)
- P is the monthly SIP amount.
- i is the monthly return: expected annual return ÷ 12 ÷ 100.
- n is the number of monthly instalments.
₹10,000 monthly SIP at 12%
| Period | Invested | Returns | Value |
|---|---|---|---|
| 5 years | ₹6,00,000 | ₹2,24,864 | ₹8,24,864 |
| 10 years | ₹12,00,000 | ₹11,23,391 | ₹23,23,391 |
| 15 years | ₹18,00,000 | ₹32,45,760 | ₹50,45,760 |
| 20 years | ₹24,00,000 | ₹75,91,479 | ₹99,91,479 |
| 25 years | ₹30,00,000 | ₹1,59,76,351 | ₹1,89,76,351 |
| 30 years | ₹36,00,000 | ₹3,16,99,138 | ₹3,52,99,138 |
Notice how returns overtake the amount invested after about 10 years: that is compounding.
Monthly SIP needed for ₹1 crore
| Time | At 12% return | At 10% return |
|---|---|---|
| 10 years | ₹43,041 | ₹48,414 |
| 15 years | ₹19,819 | ₹23,928 |
| 20 years | ₹10,009 | ₹13,060 |
| 25 years | ₹5,270 | ₹7,474 |
Getting more from your SIP
- Start early. Time matters more than the amount; the calculator shows what one year of delay costs.
- Step it up. Raise your SIP with each salary hike using the step-up SIP calculator.
- Stay invested through falls. SIPs buy more units when prices are low.
- Choose direct plans for lower expense ratios, which compound in your favour.
Frequently asked questions
How is SIP return calculated?
A SIP is a series of monthly investments, each compounding until the end date. The future value is P × ((1 + i)^n − 1) ÷ i × (1 + i), where P is the monthly amount, i is the annual return ÷ 12 ÷ 100 and n is the number of months. This assumes you invest at the start of each month.
What return should I assume for an equity SIP?
There is no guaranteed return. Diversified equity funds in India have historically delivered roughly 10–14% a year over long periods, but with large swings. Many planners use 10–12% for long-term goals and lower figures for debt or hybrid funds.
How much should I invest in a SIP to become a crorepati?
At an assumed 12% a year, about ₹10,000 a month for 20 years grows to roughly ₹1 crore. Over 15 years you would need about ₹20,000 a month. The table on this page shows other combinations.
Is SIP better than a lumpsum investment?
If markets rise steadily, a lumpsum invested at the start earns more. A SIP spreads your purchases over time, which reduces the risk of investing everything at a market peak and suits a monthly salary.
Are SIP returns taxable?
Gains on equity funds held over 12 months are long-term capital gains, taxed at 12.5% on gains above ₹1.25 lakh a year. Short-term gains are taxed at 20%. Each SIP instalment has its own holding period. Debt fund gains are taxed at your slab rate.
Can I change or stop my SIP?
Yes. You can pause, stop, increase or decrease a SIP at any time with your fund house or platform; there is no penalty for stopping, though exit loads may apply if you redeem units early.