SIP Calculator
Calculate your potential returns from Systematic Investment Plan
SIP Calculator – Know Exactly Where Your Money Will Be in 10, 20 or 30 Years
So, What Actually is a SIP Calculator?
Think of it this way – you decided to put aside ₹5,000 every month into a mutual fund. But the big question is: after 15 years of doing this religiously, how much will that pile actually become? That’s exactly what a SIP calculator answers for you.
It’s not magic. It’s math. You punch in three things – how much you’re investing each month, what kind of return you’re expecting, and for how long – and it spits out a number that tells you your approximate future wealth. Simple as that.
The real value isn’t just seeing a big number at the end. It’s about understanding how your money behaves over time. Because ₹5,000 invested for 10 years behaves very differently from ₹5,000 invested for 20 years. And that difference? It’s massive.
How Does Our Calculator Work?
No complicated steps here. Just three inputs and you’re done:
Step 1 – Pick your monthly amount. This is how much you’ll put away every single month. On our calculator, you can go anywhere from ₹100 to ₹10 lakh. If you’re just getting started, even ₹1,000 a month is a perfectly fine place to begin.
Step 2 – Set your expected return. This is the tricky one for beginners. What return should you assume? For equity mutual funds, somewhere between 10-12% is a sensible, grounded estimate over the long run. Going above 15% is usually wishful thinking. For debt funds, 6-8% is more realistic.
Step 3 – Choose your time horizon. How many years are you planning to stay invested? This is actually the most powerful lever you have. The longer you stay in, the harder compounding works in your favour.
Once you’ve filled these in, the calculator gives you your total invested amount, the estimated returns on top of that, and your final corpus – along with a chart showing year-by-year growth.
The Math Behind It (For the Curious Ones)
Our SIP calculator runs on the future value of annuity formula:
FV = P × ({[1 + r]^n – 1} / r) × (1 + r)
Let’s break down what each letter means:
- FV – The final amount you’ll have (what we’re trying to find)
- P – Your monthly SIP amount
- r – Monthly return rate (take your annual return, divide by 12, then by 100)
- n – Total number of months you’ll be investing
Let’s work through a real example:
Say you’re investing ₹5,000 every month at an expected 12% annual return for 10 years.
First, convert to monthly: r = 12 ÷ 12 ÷ 100 = 0.01 Total months: n = 10 × 12 = 120
Now plug it in: FV = 5000 × ({[1.01]^120 – 1} / 0.01) × (1.01) FV = 5000 × ({3.3004 – 1} / 0.01) × 1.01 FV = 5000 × 230.04 × 1.01 FV ≈ ₹11,61,695
So you put in ₹6,00,000 over 10 years. The calculator says you’ll end up with roughly ₹11,61,695. That extra ₹5,61,695? That’s compounding doing its thing – your money earned money, and that money earned even more money.
Why Every Indian Salaried Person Should Use This
You Can Actually See Your Goal Taking Shape
Right now, “I want ₹1 crore” is just a dream. But once you plug numbers into the calculator and see that ₹15,000 a month for 20 years at 12% gets you close to that target – suddenly it stops being a dream and becomes a plan.
You Stop Guessing and Start Deciding
Without a calculator, every investment decision is basically a guess. With one, you can test “what if I invest ₹10,000 instead of ₹5,000?” or “what if I stay invested for 5 more years?” in seconds.
It Teaches You the Real Power of Time
This is the biggest lesson a SIP calculator can teach you. Two people investing the same amount – one for 10 years, one for 20 – will end up with wildly different results. Not because one is smarter, but because time is the real engine of wealth building.
Zero Cost, Zero Hassle
No account needed. No emails asking for your phone number. Just open, calculate, and close. That’s it.
Why SIP Is Such a Smart Way to Invest
You Don’t Need to Be a Market Expert
Trying to predict when the market will go up or down is a losing game – even professional fund managers get it wrong regularly. SIP sidesteps this problem entirely. You invest the same amount every month, no matter what the market is doing.
Your Average Cost Keeps Getting Smoothed Out
This is called rupee cost averaging, and it’s one of the biggest advantages of SIP. When markets dip, your ₹5,000 buys more units. When markets rise, it buys fewer. Over time, this evens out your purchase price and protects you from buying everything at the peak.
It Turns Saving Into a Habit
The biggest enemy of wealth building isn’t the stock market – it’s procrastination and inconsistency. SIP fixes this by making investing automatic. Money leaves your account on the same date every month. You don’t have to think about it.
Even Small Amounts Add Up Massively
This surprises most people. ₹1,000 a month doesn’t sound like much. But over 20 years at 12% returns, that becomes over ₹15 lakhs. That’s the beauty of starting small and staying consistent.
It Fits Every Budget and Every Goal
Planning for your kid’s education? Saving for a house? Building a retirement fund? SIP works for all of these. You can even run separate SIPs for separate goals so nothing gets mixed up.
What Kind of Returns Should You Actually Expect?
Be honest with yourself here. Overly optimistic return assumptions will make your plan look great on paper but fall short in reality.
Large Cap & Index Funds
These track the biggest, most stable companies in India. Historically, over a 10-15 year window, they’ve delivered somewhere around 10-13% annually. They won’t make you overnight rich, but they’re the backbone of a solid long-term portfolio.
Mid & Small Cap Funds
Higher potential returns – historically 12-18% over long periods – but with significantly more ups and downs along the way. These are best suited if you have at least a 7-10 year horizon and can stomach seeing your portfolio drop 30-40% during corrections without panicking.
Hybrid Funds
A mix of equity and debt in one fund. Expect somewhere around 8-11% over 5+ years. Good for people who want decent growth but don’t want to lose sleep during market crashes.
Debt Funds
The steady, boring option – and sometimes boring is exactly what you need. Returns typically range from 5-8% depending on the type. Useful for goals that are 2-4 years away.
ELSS Funds
These are equity funds with a twist – they also save you tax. Returns are similar to large/mid cap equity (10-14% historically), and you get a deduction of up to ₹1.5 lakh under Section 80C. The only catch is a mandatory 3-year lock-in period.
One important reminder: These are historical averages, not promises. Any given year could look very different. Always plan with a conservative estimate – you’ll be pleasantly surprised more often than disappointed.
Real Scenarios: How SIP Actually Works for Indians
The Young Professional Starting Out
Ravi, 24, starts a ₹3,000/month SIP right after his first job. He picks a simple index fund and sets it to auto-debit.
- After 10 years (age 34): Invested ₹3,60,000 → Approximate value ₹6,96,000
- After 20 years (age 44): Invested ₹7,20,000 → Approximate value ₹35,40,000
- After 30 years (age 54): Invested ₹10,80,000 → Approximate value ₹1,06,00,000
Notice how the jump from year 20 to year 30 is absolutely enormous. That’s compounding in full swing.
The Parent Planning for Education
Priya wants ₹30 lakhs for her daughter’s college education in 12 years. How much does she need to invest monthly?
- At 12% expected return: Around ₹8,500/month
- At 10% expected return: Around ₹10,200/month
This is where the calculator becomes genuinely useful – you can work backwards from your goal.
The Late Starter Who Thinks It’s Too Late
Amit is 42 and has never invested before. He thinks it’s pointless to start now. But if he puts ₹20,000/month into equity funds for the next 15 years at 12%:
- Total invested: ₹36,00,000
- Approximate final value: ₹1,20,00,000
It’s never too late. The math doesn’t care about your age – it only cares about how much you put in and for how long.
SIP vs Lumpsum – Which One Actually Makes More Sense?
This debate comes up constantly, so let’s settle it once and for all.
| What We’re Comparing | SIP | Lumpsum |
|---|---|---|
| How you invest | Same amount every month | One big chunk at once |
| How much you need upfront | Very little – even ₹500 works | You need the full amount ready |
| Risk from bad timing | Very low – averages out over months | High – if you invest at a peak, you’re stuck |
| Who it suits best | Salaried earners, beginners, anyone building a habit | People who just received a bonus, inheritance, or maturity payout |
| Emotional difficulty | Low – it’s automatic | Higher – requires confidence to deploy a large sum |
The honest take: For most working Indians, SIP is the better default choice. It removes emotion from the equation and builds wealth steadily. Lumpsum can occasionally beat SIP if you happen to invest right before a big market rally – but counting on that is basically gambling.
How Much Should You Be Putting Into SIP Each Month?
A common rule of thumb: aim to invest at least 20% of your take-home salary. But life is messier than rules of thumb, so here’s a more realistic breakdown:
If you’re in your 20s – You have the biggest gift: time. Even ₹2,000-5,000 a month makes a huge difference over 30+ years. Prioritize starting over investing a large amount.
If you’re in your 30s – This is the sweet spot. Try to get to ₹10,000-20,000 a month. Your career is usually growing, and you still have 25-30 years of compounding ahead.
If you’re in your 40s – Don’t panic if you haven’t started yet. ₹20,000-40,000 a month for 15-20 years still builds serious wealth. Also start thinking about balancing equity with some debt.
If you’re in your 50s – Capital protection becomes more important now. A mix of balanced and debt funds makes sense. ₹15,000-30,000 a month focused on lower-risk options is a solid approach.
Tax Side of Things – What You Need to Know
If You Invest in ELSS Funds
You get a tax deduction of up to ₹1.5 lakh per year under Section 80C. If you’re in the 30% tax bracket, that alone saves you ₹45,000 a year. ELSS has the shortest lock-in period among all 80C options – just 3 years. After that, your gains above ₹1.25 lakh are taxed at 12.5% as long-term capital gains (as updated in Budget 2024).
If You Invest in Regular Equity Funds
Hold for more than a year? Gains above ₹1.25 lakh are taxed at 12.5% (LTCG). Sell before a year? The entire gain is taxed at 20% (STCG). So patience isn’t just good for returns – it’s good for your tax bill too.
If You Invest in Debt Funds
Since April 2023, debt fund gains are taxed as per your income tax slab – no more indexation benefit. This makes debt funds slightly less tax-efficient than they used to be. Still useful for short-term parking, but the tax advantage has shrunk.
Mistakes That Will Actually Cost You Money
Hitting Pause When Markets Fall
This is probably the single most expensive mistake Indian investors make. When your portfolio shows red, the instinct is to stop the SIP and “wait for things to settle.” But that’s exactly backwards. A market dip means your ₹5,000 is buying more units than usual. Stopping now locks in losses and means you miss the recovery entirely.
Never Touching Your SIP Amount Again
Your salary grows every year. Your SIP should too. If you started at ₹3,000 three years ago and you’re still at ₹3,000 today, you’re actually investing less in real terms (thanks to inflation). Bump it up by 10-15% each year – this is what’s called a step-up SIP.
Picking a Fund Because Someone on YouTube Said So
Social media is full of people shouting about specific funds. Some of them are genuinely knowledgeable. Many are not. Before putting your money into any fund, check its track record over at least 5 years, look at how it performed during the 2020 crash, and understand what category it belongs to.
Opening 12 Different SIPs Because “Diversification”
Having money in 12 different funds doesn’t make you diversified – it makes you confused. Three to four well-chosen funds across different categories (large cap, mid cap, and maybe one hybrid or debt fund) is usually more than enough.
Starting SIP Before You Have an Emergency Fund
If you haven’t set aside 3-6 months of living expenses in a liquid account, that should come first. Otherwise, the first time an unexpected expense hits, you’ll be forced to redeem your SIP investments – probably at the worst possible time.
Quick Tips If You’re Just Starting Out
Don’t wait for the “right time.” There is no right time. The best time to start was yesterday. The second best time is today.
Pick your SIP date wisely. Set it 2-3 days after your salary hits your account. This way, it goes out automatically without any mental friction.
Keep it boring. Index funds and large cap funds aren’t exciting, but they’re reliable. Save the exciting stuff for when you actually understand what you’re doing.
Check in once a year, not once a day. Watching your portfolio daily is a recipe for anxiety-driven bad decisions. Set a yearly review date, check how things are going, and make adjustments if needed.
Increase before you add new funds. If you want to invest more, first try increasing your existing SIP amount. Adding a brand new fund every few months just creates clutter.
Questions People Actually Ask Us
Can I really start a SIP with just ₹500? Yes. Most mutual fund houses allow SIPs starting at ₹500 per month. Some even allow weekly SIPs. The amount matters less than the habit of investing consistently.
What if I want to stop my SIP for a few months? You can pause it – most fund houses allow this without penalty. But try not to make it a habit. Missing even 2-3 months in a 20-year plan might not sound like much, but those missed months during a market dip could have bought you units at a discount.
I missed one installment. Is my SIP cancelled? No. Missing one or two months won’t end your SIP. But if you miss 3 or more consecutive months, some AMCs may automatically cancel it. Always check with your fund house if this happens.
Do I need a demat account? No. Unlike stocks, mutual funds don’t need a demat account. You can start a SIP directly through AMC websites or apps like Groww, Zerodha Coin, or similar platforms.
Can I have SIPs in multiple funds at the same time? Absolutely. In fact, having 2-3 SIPs across different fund categories is a smart way to diversify. Just don’t go overboard with too many.
Should I stop SIP when the market is crashing? The opposite, actually. A crashing market means your monthly SIP is buying units at a cheaper price. Stopping now means you miss out on accumulating units at the lowest prices. Stay invested.
My friend says mutual funds are risky. Should I avoid SIP? All investments carry some risk – even keeping money in a savings account (where inflation slowly eats away at its value). SIP actually reduces risk compared to lumpsum investing by spreading your purchases across different market conditions. The key is choosing appropriate funds for your risk tolerance and timeline.
Will this calculator tell me which fund to pick? No – and be suspicious of any tool that claims to do that. Our calculator helps you figure out how much to invest and for how long. Picking the actual fund requires research into the fund’s track record, expense ratio, and how it fits your goals. We’d recommend checking AMFI’s website or speaking to a SEBI-registered financial advisor for that.
Can NRIs use SIP to invest in Indian markets? Yes, NRIs can invest in Indian mutual funds through SIP. They’ll need an NRO or NRE account and must comply with FEMA guidelines. Some fund houses have specific NRI portals for this.
Time to Stop Reading and Start Calculating
The information above gives you the knowledge. But knowledge without action is just trivia.
The single most important step you can take right now is to plug in your numbers – even rough ones – and see what the calculator shows. If the number surprises you (and it probably will), let that be your motivation to start or increase your SIP.
Remember: wealth isn’t built by people who know everything about investing. It’s built by people who start early, stay consistent, and don’t overthink it.
Go ahead – use the calculator above and see where your money can actually take you.
Disclaimer:
This calculator is meant purely for educational and informational purposes. The numbers it produces are estimates based on a constant assumed rate of return – real market returns go up and down every single year, sometimes dramatically.
Please keep the following in mind:
- Actual returns will differ from what this calculator shows. Markets are unpredictable.
- This tool does not factor in expense ratios, exit loads, or taxes on your gains.
- The calculator assumes you invest the same amount on the same date every month – real-world SIPs may vary slightly.
- Inflation will reduce the purchasing power of your future corpus.
- Nothing shown here should be treated as a recommendation to buy any specific fund or product.
- Mutual fund investments carry market risk. You could lose money, including your original investment.
- This calculator has no connection to SEBI, AMFI, or any mutual fund company.
If you’re serious about building an investment plan, please talk to a SEBI-registered investment advisor who can look at your complete financial picture before you commit money anywhere.
Also Try These Calculators on TappingMoney:
- Lumpsum Calculator – See how a one-time investment grows
- SIP vs Lumpsum Calculator – Compare both approaches side by side
- SWP Calculator – Plan how to withdraw from your corpus
- Retirement Planner – Figure out your retirement number
- PPF Calculator – Calculate your PPF maturity amount
Page last updated: January 2026 | Free to use | No sign-up needed