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SIP Calculator

Calculate the projected future wealth of your Systematic Investment Plan (SIP) in Indian mutual funds. Model monthly investments against historical compounding returns to plan your car purchase or retirement goals.

₹
₹500₹2,00,000
%
4%30%
Yr
1 Yr40 Yr

Total Corpus at Maturity

₹11,61,695

After 10 years at 12% p.a. expected return

Invested

₹6,00,000

Returns

₹5,61,695

Corpus

₹11,61,695

Total Cost₹11,61,695
Principal Loan
₹6,00,000
51.6%
Total Interest
₹5,61,695
48.4%

Mutual fund SIP returns are market-linked and not guaranteed. Past performance does not guarantee future results.

The Power of Compounding via Mutual Fund SIPs

A Systematic Investment Plan (SIP) allows you to build substantial capital by committing a disciplined, monthly sum toward equity or hybrid mutual funds. Rather than timing volatile stock markets, an SIP averages out market peaks and valleys through Rupee-Cost Averaging — buying more fund units when prices are low and fewer units when prices are high.

The future value of monthly SIP contributions is calculated through the compounding annuity formula:

M = P × [((1 + i)^n - 1) / i] × (1 + i)
M: Estimated maturity wealth accumulated.
P: Regular monthly investment amount (e.g. ₹5,000 or ₹10,000).
i & n: Periodic monthly rate (Annual % ÷ 1200) and total months of investment.

Corpus Projection Table at 12% Expected Annual Returns

Observe how the compounding hockey-stick curve accelerates dramatically after year 10:

Monthly SIP5 Years Corpus10 Years Corpus15 Years Corpus20 Years Corpus
₹5,000₹4,12,432₹11,61,695₹25,22,880₹49,95,740
₹10,000₹8,24,864₹23,23,391₹50,45,760₹99,91,479
₹25,000₹20,62,160₹58,08,477₹1,26,14,401₹2,49,78,698
🚀 The Wealth Multiplier: In a 20-year SIP of ₹10,000/month, your total out-of-pocket investment is only ₹24,00,000. Yet, your final projected corpus reaches nearly ₹1 Crore (₹99.9 Lakhs) — meaning pure compounding interest accounts for over 75% of your wealth!

The Step-Up SIP Advantage for Car Buyers

Many Indian car buyers use an SIP to fund their future car upgrade or accumulate a 50% cash down payment:

Standard Flat SIP

Investing a fixed ₹10,000 monthly for 5 years yields approximately ₹8.25 Lakhs. While helpful, it does not keep pace with salary growth or inflation.

10% Annual Step-Up SIP

Increasing your monthly SIP by 10% each year (₹10k in year 1, ₹11k in year 2, ₹12.1k in year 3) generates over ₹10.3 Lakhs in the same 5-year timeframe — allowing you to purchase your car outright in cash with zero debt!

Frequently Asked Questions

What is a Systematic Investment Plan (SIP)?▾
A Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds in India allowing investors to invest a fixed amount regularly (monthly or quarterly) into a chosen scheme, benefiting from rupee-cost averaging and compounding growth.
How is SIP maturity value calculated in India?▾
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 periodic investment amount, i is the periodic interest rate (annual expected return ÷ 12 ÷ 100), and n is the total number of monthly payments.
What expected annual return should I use for equity mutual fund SIPs?▾
Historically, Indian broad market equity indices (such as Nifty 50 and BSE Sensex) have delivered annualized long-term returns between 12% and 14% over 10+ year rolling periods. For conservative planning, 11% to 12% is widely recommended.
What is a Step-Up SIP and why is it recommended?▾
A Step-Up (or Top-Up) SIP allows you to automatically increase your monthly contribution by a fixed percentage (such as 10% each year) in tandem with annual salary increments. This dramatically accelerates wealth creation, frequently doubling the final corpus over a 15-year horizon.
How are mutual fund SIP returns taxed in India (Budget 2024 rules)?▾
Under updated Union Budget tax rules: For equity mutual funds held over 12 months, Long-Term Capital Gains (LTCG) exceeding ₹1.25 Lakh in a financial year are taxed at 12.5% (without indexation). Short-Term Capital Gains (STCG) on units held under 12 months are taxed at 20%.
Can I stop or pause my SIP at any time without penalty?▾
Yes, unlike fixed deposits or recurring deposits, mutual fund SIPs do not levy any lock-in penalty for pausing or canceling future installments. Your previously accumulated units continue to remain invested and generate market returns.