SIP Calculator

Calculate the maturity amount of your Systematic Investment Plan (SIP). See total investment, estimated returns, and a year-by-year growth breakdown. Based on compound interest with monthly compounding.

SIP Details
₹500₹1L
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1 yr40 yrs
Year-by-Year Breakdown
Year Invested Returns Total Value

What is a SIP?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount in a mutual fund at regular intervals — typically monthly. Instead of investing a large lump sum, SIP lets you invest small amounts consistently, benefiting from rupee cost averaging and the power of compounding.

SIP Maturity Formula
M = P × ((1 + i)^n – 1) / i × (1 + i)

Where M = Maturity amount, P = Monthly SIP amount, i = Monthly interest rate (annual rate ÷ 12 ÷ 100), n = Total number of months.

SIP vs Lump Sum

Feature SIP Lump Sum
Investment style Monthly fixed amount One-time large amount
Market timing risk Low (averaged out) High
Best for Salaried investors Large surplus holders
Discipline required High (regular habit) Low
Compounding benefit Monthly From day one

Why SIP Works

SIP works because of two powerful financial principles working together — rupee cost averaging and compounding.

Rupee cost averaging: When markets are down, your fixed SIP amount buys more units. When markets are up, it buys fewer. Over time this averages out your purchase cost, reducing the impact of market volatility.

Power of compounding: Your returns earn returns. A ₹5,000/month SIP at 12% for 20 years turns ₹12 lakh invested into over ₹49 lakh — more than 4x your money.

Best SIP Return Benchmarks

Fund Type Expected Annual Return
Liquid / Debt Funds 5–7%
Hybrid Funds 8–10%
Large Cap Equity 10–12%
Mid Cap Equity 12–15%
Small Cap Equity 15–18% (high risk)

Tips to Maximise SIP Returns

  • Start early: A 25-year-old investing ₹5,000/month ends up with nearly double what a 35-year-old does at the same return rate
  • Step-up SIP: Increase your SIP amount by 10% every year as your income grows
  • Stay invested: Do not stop SIP during market crashes — that is when you buy the most units
  • Diversify: Spread across large cap, mid cap, and index funds

Frequently Asked Questions

Everything you need to know about SIP

SIP (Systematic Investment Plan) lets you invest a fixed amount every month into a mutual fund. Each month, units are purchased at the current NAV (Net Asset Value). Over time, you accumulate units and benefit from compounding returns. It is one of the most disciplined and popular ways to build wealth in India.
The formula is: M = P × ((1 + i)^n – 1) / i × (1 + i). Where P is monthly SIP amount, i is monthly interest rate (annual rate ÷ 12 ÷ 100), and n is number of months. For example ₹5,000/month at 12% for 10 years gives a maturity value of approximately ₹11.6 lakh on an investment of ₹6 lakh.
Yes, 12% is a commonly used benchmark for equity mutual funds in India over long periods. The Nifty 50 has historically delivered around 12–13% CAGR over 15+ year periods. However, returns are not guaranteed and vary by fund, market conditions, and time period. Debt funds return 5–7%, hybrid funds 8–10%.
Most mutual funds in India allow SIPs starting at ₹100 or ₹500 per month. Some funds like HDFC, SBI, ICICI Prudential, and Axis offer SIPs from ₹100/month. There is no upper limit — you can invest any amount depending on your financial goals.
Yes. Most mutual funds allow you to pause a SIP for 1–3 months without penalties, or stop it entirely. However, financial advisors recommend staying invested especially during market downturns since that is when you accumulate the most units at lower prices.
A Step-up SIP (also called Top-up SIP) automatically increases your monthly SIP amount by a fixed percentage or amount every year — usually 10%. This aligns with salary increments and dramatically boosts your final corpus. A ₹5,000 SIP stepped up by 10% annually at 12% return for 20 years grows to over ₹1.2 crore instead of ₹49 lakh.
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