A systematic investment plan (SIP) invests a fixed amount in a mutual fund every month, usually by auto-debit from your bank account. Each instalment buys units at that day's price, so you buy more units when prices are low and fewer when they're high.

How are SIP returns calculated?

Future value = P × ((1 + i)^n − 1) ÷ i × (1 + i), where P is the monthly amount, i is the yearly return ÷ 12 ÷ 100, and n is the number of months. For example, ₹10,000 a month at 12% for 10 years grows to about ₹23,23,391, of which ₹12,00,000 is your own money and ₹11,23,391 is returns.

What is a step-up SIP?

A SIP that grows every year by a percentage you choose, often in line with pay rises. ₹10,000 a month stepped up by 10% a year, at 12% for 10 years, grows to about ₹33,74,326, compared with ₹23,23,391 if you keep it at ₹10,000.

Are SIP returns guaranteed?

No. Mutual fund returns depend on the market and change from year to year, sometimes sharply. The calculator assumes one steady rate, so treat the result as an illustration. Try a few rates, such as 8%, 10% and 12%, to see a range.

How are SIP gains taxed?

Each instalment counts as a separate purchase, with its own holding period. For equity funds, gains on units held over a year are taxed at 12.5% on gains above ₹1.25 lakh a year, and gains on units held for a year or less at 20%. Gains on debt funds bought since April 2023 are taxed at your income tax slab rate.

Can I stop or pause a SIP?

Yes. You can stop a SIP at any time without a penalty, and many fund houses let you pause it for a few months. Units bought through tax-saving ELSS funds are locked in for three years each, and some funds charge an exit load if you sell within a set period.

SIP calculator

See what a monthly SIP in a mutual fund could grow to, how much of it is returns, and what a yearly step-up adds. With a year-by-year table. Free, with no sign-up.

Monthly investment (₹)

Rupees Ten Thousand Only

Expected return (% per year)

An assumption, not a promise. Fund returns go up and down.

Time period (years)

Whole years, from 1 to 50.

Yearly step-up (%, optional)

Raise your SIP by this much every year, for example as your salary grows. 10% is a common choice.

In 10 years, your SIP could grow to

₹23,23,391

You invest: ₹12,00,000
Estimated returns: ₹11,23,391
Total value: ₹23,23,391

Invested 52%
Returns 48%

In today's money, at 6% inflation a year, that's worth about ₹12,97,369.

Mutual fund returns aren't guaranteed. This assumes a steady return, compounded monthly, with each instalment invested at the start of the month, before tax.

How it grows

Year 10: ₹23,23,391 (₹12,00,000 invested + ₹11,23,391 returns)

Invested
Returns

Years. Value at the end of each year.

Year-by-year breakdown

Year	Invested so far	Returns so far	Value at year end
1	₹1,20,000	₹8,093	₹1,28,093
2	₹2,40,000	₹32,432	₹2,72,432
3	₹3,60,000	₹75,076	₹4,35,076
4	₹4,80,000	₹1,38,348	₹6,18,348
5	₹6,00,000	₹2,24,864	₹8,24,864
6	₹7,20,000	₹3,37,570	₹10,57,570
7	₹8,40,000	₹4,79,790	₹13,19,790
8	₹9,60,000	₹6,55,266	₹16,15,266
9	₹10,80,000	₹8,68,215	₹19,48,215
10	₹12,00,000	₹11,23,391	₹23,23,391

Next steps

How to use the SIP calculator

Enter the amount you'll invest every month.
Enter the yearly return you expect. Try a cautious rate as well as a hopeful one.
Enter how many years you'll keep investing.
Optionally, add a yearly step-up to raise your SIP as your income grows.

Why starting early matters most

Returns earn returns of their own, so time does more of the work than the amount you invest. At 12% a year, a ₹10,000 SIP grows like this:

Invest for	You put in	It could grow to
10 years	₹12 lakh	₹23.2 lakh
20 years	₹24 lakh	₹99.9 lakh
30 years	₹36 lakh	₹3.53 crore

The last ten years add more than the first twenty. Even ₹5,000 a month for 30 years could reach about ₹1.76 crore, more than ₹10,000 a month for 20 years.

Step up as your salary grows

A fixed SIP gets smaller in real terms as prices and your pay rise. Raising it by a set percentage each year keeps it in step. On ₹10,000 a month at 12% for 10 years, a 10% yearly step-up adds about ₹10.5 lakh to the final value.

What the result doesn't include

Ups and downs in the market. Real returns vary from year to year.
Tax on gains when you sell, and any exit load.
Inflation. The calculator shows the result in today's money too, assuming 6% inflation a year.

Working out how much you can invest? The in-hand salary calculator shows your monthly take-home pay, and the income tax calculator compares the old and new regimes.

Questions

What is a SIP?: A systematic investment plan (SIP) invests a fixed amount in a mutual fund every month, usually by auto-debit from your bank account. Each instalment buys units at that day's price, so you buy more units when prices are low and fewer when they're high.
How are SIP returns calculated?: Future value = P × ((1 + i)^n − 1) ÷ i × (1 + i), where P is the monthly amount, i is the yearly return ÷ 12 ÷ 100, and n is the number of months. For example, ₹10,000 a month at 12% for 10 years grows to about ₹23,23,391, of which ₹12,00,000 is your own money and ₹11,23,391 is returns.
What is a step-up SIP?: A SIP that grows every year by a percentage you choose, often in line with pay rises. ₹10,000 a month stepped up by 10% a year, at 12% for 10 years, grows to about ₹33,74,326, compared with ₹23,23,391 if you keep it at ₹10,000.
Are SIP returns guaranteed?: No. Mutual fund returns depend on the market and change from year to year, sometimes sharply. The calculator assumes one steady rate, so treat the result as an illustration. Try a few rates, such as 8%, 10% and 12%, to see a range.
How are SIP gains taxed?: Each instalment counts as a separate purchase, with its own holding period. For equity funds, gains on units held over a year are taxed at 12.5% on gains above ₹1.25 lakh a year, and gains on units held for a year or less at 20%. Gains on debt funds bought since April 2023 are taxed at your income tax slab rate.
Can I stop or pause a SIP?: Yes. You can stop a SIP at any time without a penalty, and many fund houses let you pause it for a few months. Units bought through tax-saving ELSS funds are locked in for three years each, and some funds charge an exit load if you sell within a set period.