SIP Calculator

SIP (Systematic Investment Plan) is a way of investing a fixed amount in a mutual fund at regular intervals — usually monthly. Instead of investing a large sum at once, you invest small amounts regularly, which builds discipline and averages out your purchase cost over time (rupee-cost averaging).

SIP maturity is calculated using the future value of an annuity formula: M = P × [({1 + i}^n − 1) / i] × (1 + i), where P is the monthly investment, i is the monthly return rate (annual rate ÷ 12), and n is the number of months. For example, ₹10,000/month for 15 years at 12% grows to about ₹50.4 lakh, of which ₹18 lakh is invested and ₹32.4 lakh is returns.

SIP returns depend on the fund type. Equity mutual funds have historically delivered around 10–12% per annum over the long term, debt funds around 6–8%, and hybrid funds in between. Returns are market-linked and not guaranteed — past performance does not assure future results.

SIP is better when you have a regular income and want to invest gradually — it reduces timing risk through rupee-cost averaging. Lumpsum can be better when you have a large amount ready and markets are low. Many investors use both. Use the toggle in the calculator above to compare.

Yes. For equity funds, gains above ₹1.25 lakh per year are taxed at 12.5% (long-term, held over 1 year), or 20% if sold within a year (short-term). Debt fund gains are taxed at your income tax slab rate. ELSS SIPs additionally qualify for an 80C deduction up to ₹1.5 lakh.

Yes. SIPs are flexible — you can pause, stop, increase or decrease the amount anytime without penalty (except for ELSS, where each instalment has a 3-year lock-in). There is no charge for stopping a SIP, and you can redeem your accumulated units whenever you need (subject to fund exit load and lock-in).

A step-up (or top-up) SIP automatically increases your monthly investment by a fixed percentage each year — for example, 10% annually. This lets your investment grow with your income and can dramatically increase your final corpus compared to a flat SIP.