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SIP Calculator

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A SIP (systematic investment plan) invests a fixed amount every month. At 12% a year, investing 5,000 a month for 15 years puts in 900,000 and could grow to about 2.4 million. A yearly step-up, raising the amount as your income grows, makes a big difference over long periods.

Step-up raises your monthly investment every year, for example 10% as your salary grows.

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Results are estimates for general information, not financial advice. Check the figures with your lender, bank or a qualified adviser before deciding.

How SIP returns are calculated

Future value = P × [((1 + i)^n − 1) ÷ i] × (1 + i) P = monthly investment i = monthly rate, (1 + yearly return)^(1/12) − 1 n = number of months

Each instalment is invested at the start of the month and grows for the remaining time. The first instalment compounds for the whole period; the last for just one month. The calculator also handles a yearly step-up by increasing the monthly amount after every 12 months.

Why SIPs work

  • Discipline: investing automatically every month removes the temptation to wait for the "right time".
  • Rupee/dollar-cost averaging: a fixed amount buys more units when prices are low and fewer when high, smoothing your average cost.
  • Compounding: returns earn further returns, and the effect grows dramatically after 10–15 years.
  • Start small: many funds accept SIPs from very small monthly amounts.

The power of step-up

Increasing your SIP by 10% every year, in line with pay rises, can roughly double the final value over 20 years compared with a flat SIP. Try it: set the step-up to 10% and compare.

What return should I assume?

Long-term returns depend on the type of fund. Diversified equity funds in many markets have historically returned around 10–12% a year over long periods, with big swings along the way; debt funds return less but more steadily. Use a conservative figure for planning, and remember that inflation reduces what the final amount will buy.

Things the calculator doesn't include

  • Fund expense ratios and exit loads
  • Taxes on capital gains
  • Market ups and downs: real returns arrive unevenly, not at a steady rate

For illustration only. Mutual fund investments are subject to market risks; read the scheme documents and consider professional advice.

Frequently asked questions

How is SIP return calculated?

Using the future value of a series of monthly payments: P × [((1 + i)^n − 1) ÷ i] × (1 + i), with i as the monthly rate and n the number of months.

How much will a 5,000 monthly SIP be worth in 15 years?

At a 12% yearly return, about 2.4 million, from 900,000 invested.

What is a step-up SIP?

A SIP where the monthly amount increases every year by a set percentage, usually in line with salary increases.

Is SIP return guaranteed?

No. Returns depend on market performance and can be higher or lower than expected, including negative.

What is the difference between SIP and lump sum?

A SIP invests a fixed amount every month; a lump sum invests everything at once. Use the Compound Interest Calculator for lump sums.

Last updated October 2026 · More finance & business