How this SIP calculator works
A Systematic Investment Plan (SIP) invests a fixed amount into a mutual fund at regular intervals. Because each instalment stays invested for a different length of time, the earlier contributions grow the most. This calculator compounds every instalment monthly until your chosen end date:
FV = Σ P × (1 + r)ⁿ where r = annual rate ÷ 12, n = months remaining
When you switch on a step-up, the monthly amount increases by your chosen percentage at the end of every year — the way many salaried investors raise their SIP after a raise.
What the numbers mean
- Total invested — how much money left your bank account.
- Estimated returns — the portion created by market growth, i.e. future value minus invested.
- Wealth multiple — future value divided by money invested; a 3× multiple means every ₹1 became ₹3.
Choosing realistic numbers
- Equity funds: model 10–12% for long horizons; large-cap index funds often sit slightly lower, small-cap slightly higher with more volatility.
- Hybrid / balanced funds: 8–10%.
- Debt funds: 6–7%.
- Duration: the longer the tenure, the greater the effect of compounding and the smaller the risk of a bad entry year.
SIP vs. lumpsum
SIPs average out purchase cost and remove market-timing decisions. If you already hold a lump sum, compare it with the SWP calculator to plan withdrawals, or use the FIRE calculator to see how much monthly investment your retirement target needs.
Returns shown are illustrative. Mutual fund investments are subject to market risk; past performance does not guarantee future results. Tax is not applied to these figures.