Flat SIP
₹11,61,695
Invests ₹6,00,000 (₹5,000 a month), compounding monthly.
Recommended from this result
Next toolsAssumptions and methodology
Transparent calculation notes for SIP Calculator.
Formula used
Recurring SIP future value
FV = M x [((1 + r)^n - 1) / r] x (1 + r)
The annual return you enter is split into 12 equal monthly rates (12% becomes 1% a month), about 12.68% a year once compounded. Each SIP instalment is invested at the start of its month. The lumpsum path compounds once a year.
Methodology
- Convert annual return to monthly return.
- Compound each monthly contribution through the remaining period.
- Compare invested amount, estimated returns, and final corpus.
Core assumptions
- SIPs are invested monthly without skips.
- Return remains constant through the horizon.
- Scenario settings change assumptions only; they do not guarantee outcomes.
- Fund returns are usually quoted as CAGR or XIRR, so entering one here gives a slightly higher SIP corpus: ₹11,61,695 instead of ₹11,20,179 for ₹5,000 a month over 10 years at 12%.
Not included
- Market volatility, taxes, exit load, expense ratio, and irregular SIP changes are excluded unless separately modeled.
- Actual returns can be lower or negative over shorter periods.
About SIP Calculator
Guide1What is SIP (Systematic Investment Plan)?
A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in mutual funds. Instead of investing a lump sum, SIP allows you to invest small amounts at regular intervals — typically monthly — making it one of the most popular investment strategies in India.
SIP works on the principle of rupee cost averaging, where you buy more units when the market is low and fewer when it's high, effectively averaging out your cost over time.
2SIP Formula
The future value of a SIP investment is calculated using the formula:
FV = M × [((1 + r)^n - 1) / r] × (1 + r)
- FV = Future Value of the investment
- M = Monthly investment amount
- r = Monthly rate of return (annual rate / 12 / 100)
- n = Total number of months
3How to Use This SIP Calculator
- Step 1: Enter your monthly investment amount (e.g., ₹5,000)
- Step 2: Set the expected annual return rate (e.g., 12%)
- Step 3: Choose the investment duration in years
- Step 4: Read the projected corpus, what you invest and the growth. In Goal mode, enter a target instead: the headline is the monthly SIP (or lumpsum) it needs
- Step 5: Compare the same money as a flat SIP, a step-up SIP and a lumpsum in the cards below the results
4Benefits of SIP Investing
- Rupee Cost Averaging: Reduces the impact of market volatility
- Power of Compounding: Small regular investments grow exponentially over time
- Disciplined Investing: Automates your investment habit
- Flexible: Start with as low as ₹500/month and increase over time
- No Market Timing: Eliminates the need to predict market highs and lows
Frequently Asked Questions
FAQWhat is the minimum amount to start a SIP?
Most mutual funds in India allow SIP investments starting from ₹500 per month. Some funds may have a minimum of ₹100 or ₹1,000.
Is SIP better than lump sum investment?
SIP is generally better for volatile markets as it averages out the purchase cost. However, if you have a lump sum and the market is at a low, lump sum can outperform SIP. A combination of both is often the best strategy.
Can I stop or modify my SIP?
Yes, SIPs are flexible. You can pause, stop, increase, or decrease your SIP amount at any time without any penalty in most mutual funds.
Are SIP returns guaranteed?
No, SIP returns are market-linked and not guaranteed. The calculator provides estimates based on assumed return rates. Actual returns depend on market conditions and fund performance.
Is SIP tax-free?
No. A SIP is only a way of investing, so tax depends on the fund. For equity funds, units held for more than 12 months are long-term: gains are taxed at 12.5% on your total equity gains above ₹1.25 lakh in a tax year. Units sold within 12 months are taxed at 20%. Each SIP instalment has its own 12-month clock. Debt funds (more than 65% in debt and money-market instruments) bought on or after 1 April 2023 are taxed at your slab rate. ELSS (tax-saving) funds: under the old tax regime, up to ₹1.5 lakh a year is deductible under Section 123 (Section 80C before 1 April 2026), and each instalment is locked in for 3 years. The new tax regime, which is the default, gives no such deduction. Rates are for tax year 2026-27 under the Income-tax Act, 2025 (as amended by the Finance Act, 2026) and exclude surcharge and the 4% cess.