How does a SIP work?
A Systematic Investment Plan invests a fixed amount in a mutual fund every month. Returns compound, so the longer you stay invested, the faster your money grows. This calculator turns your yearly return into the equivalent monthly rate and assumes each instalment goes in at the start of the month. A 12% yearly return therefore means 12% after a full year, not 1% a month added up.
Monthly SIP, lump sum or a goal?
Monthly SIP shows what regular investing becomes. Lump sum shows what one amount invested today becomes. Plan for a goal works backwards: you enter the amount you want and the date, and it tells you the starting SIP, allowing for any money you already have set aside.
Why a step-up matters
Your income usually grows, so your SIP can too. Raising it by 10% every year turns a ₹10,000 SIP into about ₹23,600 a month by year 10, and builds a much larger corpus than a flat SIP. The calculator shows both so you can see the gap.
Why start early?
The last few years of a long SIP add the most money, and the early years supply the compounding that makes them large. Starting 5 years later does not cost 5 years of growth. It costs far more, as the What waiting costs table shows.
Inflation and tax
₹1 crore in 20 years will buy much less than ₹1 crore today, so the result is also shown in today’s money. Under Tax and inflation you can include capital-gains tax. Equity gains held over a year are taxed at 12.5% above ₹1.25 lakh of gains in a year, and debt-fund gains are added to your income. The calculator treats it as one sale at the end, which is a simplification.
Frequently asked questions
Are SIP returns guaranteed?
No. Mutual fund returns are market-linked and uneven. The figures here are projections from the return you enter, not a promise. Real returns can be negative for years.
What return rate should I assume?
Equity funds have delivered roughly 10 to 12% over long periods in India, but with large falls along the way. Debt funds and FDs earn about 6 to 7.5%. For planning, use a lower figure than the best you have seen.
Can I pause or stop a SIP?
Yes. You can pause, change or stop a SIP at any time. Stopping during a market fall hurts most, because you miss the cheap units that help later returns.
What is the difference between SIP and lump sum?
A SIP spreads your money over time, which reduces the risk of investing everything just before a fall. A lump sum has more time in the market if you already have the money. Neither is better in every market.
Does this include fund charges?
No. Enter a return after fund expenses. A direct plan has a lower expense ratio than a regular plan, and the difference compounds over time.