SIP Calculator
A Systematic Investment Plan (SIP) is the most popular way for Indian investors to grow wealth in mutual funds. Small, regular investments — powered by time and compounding — can create significant wealth.
🚀 The Magic of Compounding
₹5,000/month invested for 20 years at 12% p.a. grows to ₹49.96 Lakhs — turning just ₹12 Lakhs invested into nearly ₹50 Lakhs. That's compounding in action.
Note: SIP returns are market-linked and not guaranteed. Historical returns are used as a reference only.
SIP Details
Historical Nifty 50 average: ~12%
10 years
SIP Returns Summary
- Estimated Returns
- ₹23.23 L
- Total Gains
- ₹11.23 L
- Total Invested
- ₹12.00 L
- Wealth Multiplier
- 1.94×
💡 Investing just ₹10,000/month for 10 years at 12% p.a. turns ₹12.00 L into ₹23.23 L — a 1.94× return. That's the power of compounding!
Year-wise Projection
| Year | Invested | Portfolio Value | Gains |
|---|---|---|---|
| 1 | ₹1,20,000 | ₹1.28 L | ₹8,093 |
| 2 | ₹2,40,000 | ₹2.72 L | ₹32,432 |
| 3 | ₹3,60,000 | ₹4.35 L | ₹75,076 |
| 4 | ₹4,80,000 | ₹6.18 L | ₹1.38 L |
| 5 | ₹6,00,000 | ₹8.25 L | ₹2.25 L |
| 6 | ₹7,20,000 | ₹10.58 L | ₹3.38 L |
| 7 | ₹8,40,000 | ₹13.20 L | ₹4.80 L |
| 8 | ₹9,60,000 | ₹16.15 L | ₹6.55 L |
| 9 | ₹10,80,000 | ₹19.48 L | ₹8.68 L |
| 10 | ₹12,00,000 | ₹23.23 L | ₹11.23 L |
Frequently Asked Questions
What is a SIP?
A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (usually monthly) in a mutual fund. It removes the need to time the market and benefits from rupee cost averaging.
What return rate should I use for a SIP calculator?
Nifty 50 has historically returned ~12% per year (CAGR) over 20+ year periods. For conservative estimates use 10%; for aggressive use 14–15%. Past returns do not guarantee future performance.
What is rupee cost averaging?
When markets fall, your fixed SIP amount buys more units. When markets rise, you buy fewer. Over time, this averages your cost per unit lower than if you invested a lump sum.
Is SIP better than a lump sum investment?
SIP is better for most investors because it removes timing risk and suits salaried individuals with regular income. Lump sum can outperform SIP if markets rise continuously — but that is hard to predict.
Are SIP returns taxable?
For equity mutual funds: gains held > 1 year are taxed at 10% LTCG (above ₹1L). Gains held < 1 year are taxed at 15% STCG. For debt funds: taxed at your income slab rate.