Plan your wealth-building journey with this free SIP calculator. Enter your monthly investment, expected return rate, and investment period to see how much your systematic investment plan could grow over time.
Last updated: March 2026
A Systematic Investment Plan (SIP) works by investing a fixed amount every month into a mutual fund scheme. Each monthly instalment buys units at the prevailing NAV (Net Asset Value). Over time, you benefit from rupee cost averaging and the power of compounding.
The future value of a SIP is calculated using this standard formula:
Where:
| Variable | Meaning |
|---|---|
| FV | Future value of the investment |
| P | Monthly SIP amount (e.g., ₹5,000) |
| r | Monthly rate of return (annual rate / 12 / 100) |
| n | Total number of instalments (years × 12) |
Suppose you invest ₹5,000 per month at an expected annual return of 12% for 10 years:
Your total investment would be ₹6,00,000 (₹5,000 × 120 months), and the estimated returns would be approximately ₹5,61,695 — nearly doubling your invested amount through the magic of compounding.
SIP is one of the most popular and disciplined ways to build wealth in India. Here are the key advantages and tips to maximise your returns:
SIP stands for Systematic Investment Plan. It is a method of investing a fixed amount at regular intervals (usually monthly) into a mutual fund scheme. SIP allows you to start investing with small amounts, making it accessible for salaried individuals. Each instalment purchases units at the current NAV, and over time you benefit from rupee cost averaging and compounding.
Neither is universally better — it depends on your situation. SIP is ideal for regular investors who want to avoid the risk of timing the market. It smooths out volatility through rupee cost averaging. Lump sum investment can outperform SIP when markets are at a low point. For most salaried Indians, SIP is the preferred approach because it enforces financial discipline and spreads risk over time.
Yes, in most open-ended mutual funds, you can stop or pause your SIP at any time without any penalty or exit load on the SIP itself. However, if you redeem (withdraw) your units, exit loads may apply depending on the fund and holding period. ELSS funds have a mandatory 3-year lock-in per instalment. Always check your fund’s terms before making changes.
A step-up SIP (also known as a top-up SIP) lets you automatically increase your SIP amount at fixed intervals, typically once a year. You can choose to increase by a fixed amount (e.g., ₹1,000 more each year) or a percentage (e.g., 10% annually). This strategy aligns your investments with your growing income and can substantially increase your final corpus compared to a flat SIP.
Financial advisors generally recommend investing 20–30% of your monthly income. However, the right amount depends on your financial goals, existing commitments, and risk appetite. You can start a SIP with as little as ₹500 per month. Use a goal-based approach: decide your target amount and timeline, then work backwards using this SIP calculator to find the required monthly investment.
No, SIP returns are not guaranteed. Mutual funds invest in market-linked instruments (equities, bonds, etc.), and their returns depend on market performance. The returns shown in any SIP calculator are based on assumed annual return rates and are for illustration only. Historically, equity mutual funds in India have delivered 10–15% CAGR over 10+ year periods, but past performance does not guarantee future results.