SIP Calculator: Returns, Step-Up SIP and SIP Needed for a Goal

What ₹5,000, ₹10,000 or ₹25,000 a Month Could Grow To

At an assumed 12% a year (monthly rate = 12% ÷ 12), investing on the same date each month:

Doubling the period from 10 to 20 years doubles what you put in but more than quadruples the projected value, because later returns are earned on earlier returns. The 12% is an assumption for illustration, not a forecast for any fund. Change it in the calculator.

How Much SIP Do You Need for ₹1 Crore?

Monthly SIP needed to reach ₹1,00,00,000, rounded up to the rupee:

Time does more than return: at 12%, starting 10 years earlier (25 years instead of 15) cuts the SIP needed from ₹19,819 to ₹5,270. Pick "SIP needed for a goal" in the calculator for any other target.

How SIP Returns Are Calculated

M = P × ((1 + i)^n − 1) ÷ i × (1 + i)

M is the value at the end, P the monthly SIP, n the number of instalments and i the monthly rate. The final (1 + i) is there because each instalment is invested at the start of its month and earns a full month's return.

For ₹10,000 a month for 15 years at 12%: i = 0.01, n = 180, and M = 10,000 × (1.01^180 − 1) ÷ 0.01 × 1.01 = ₹50,45,760, of which ₹18,00,000 is your money and ₹32,45,760 is estimated returns.

Fund houses' calculators turn the annual return into i in two ways:

Dividing by 12 is the more common method, but 1% a month compounds to 12.68% over a year. The compounded method grows money by exactly the annual rate, so it is the more conservative estimate.

Step-Up SIP: Raise It Every Year

The same ₹10,000 SIP raised by 10% each year, for 15 years at 12%:

A step-up has no single formula, so the calculator grows every instalment month by month. Raising the SIP with your income is often easier than starting with a large amount.

SIP or Lump Sum?

If the ₹18,00,000 from the 15-year example were available today and invested in one go at the same 12%, it would be projected to reach ₹1,07,92,444, more than twice the SIP's ₹50,45,760. That is simply because all of it is invested for the full 15 years.

The comparison only holds if returns are steady, and they are not. A lump sum is exposed to the price on one day; a SIP buys at many prices and suits money you earn every month. If you already have a large amount, some investors spread it into the market over several months instead of investing it all at once. The calculator shows the lump-sum figure under every result.

What Inflation Does to Your Corpus

A projected ₹50,45,760 in 15 years will not buy what ₹50,45,760 buys today. At an assumed 6% inflation, it is worth ₹21,05,419 in today's money.

Plan goals the other way round: a goal that costs ₹1 crore today would cost ₹2,39,65,582 in 15 years at 6% inflation, and reaching that at 12% needs a SIP of ₹47,497 a month. Enter an inflation rate in the calculator to see both figures; the 6% here is an example, not a forecast.

What the Projection Leaves Out

• Ups and downs. Real returns change every month; your path and final value will differ.
• Costs. The expense ratio is deducted from the fund's NAV, so use a return net of expenses.
• Tax. Gains are taxed on redemption; nothing is deducted here.
• Your actual return. Once you invest, your statement shows the return as XIRR, based on the date of each instalment.

Mutual fund investments are subject to market risk, and no return is guaranteed. Read the scheme documents before investing. This calculator is a planning tool, not investment advice; for advice on which funds suit you, talk to a SEBI-registered investment adviser.