Common Returns
Debt funds: ~7–8%
Balanced funds: ~10–11%
Equity/ELSS: ~12–15%
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SIP Calculator.
Calculate how your SIP investments grow over time. Enter your monthly investment, expected return, and tenure to get the maturity value and year-by-year breakdown.
Maturity Value
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Total corpus
Total Invested
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Your contributions
Wealth Gained
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Amount Invested Wealth Gained
Growth Chart
Invested amount vs wealth gained over time
Year-by-Year Growth
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About SIP
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. Instead of timing the market, you invest regularly and benefit from rupee cost averaging — buying more units when prices are low and fewer when high. It suits anyone building wealth gradually for goals like retirement, education or a home down-payment.
The formula. SIP maturity value is M = P × [((1 + r)^n − 1) ÷ r] × (1 + r), where P = monthly investment, r = monthly return rate (annual rate ÷ 12 ÷ 100), and n = total number of monthly instalments. The final (1 + r) treats each instalment as invested at the start of the month.
Worked example. Investing ₹5,000 a month for 10 years at an assumed 12% annual return gives r = 0.01 and n = 120. The formula produces a maturity value of about ₹11.6 lakh — of which ₹6 lakh is your own contribution and roughly ₹5.6 lakh is wealth gained from compounding.
SIPs are eligible for LTCG tax at 12.5% on gains above ₹1.25L/year (equity funds held > 1 year). ELSS SIPs also qualify for 80C deduction up to ₹1.5L/year.
Where it's used. SIPs are the most common way Indians invest in mutual funds. Fixing a monthly amount turns investing into a habit, smooths out market swings, and lets a modest sum compound into a large corpus over 10–20 years. Returns are market-linked and not guaranteed — the longer the horizon, the more compounding works in your favour.
FAQ
Frequently Asked Questions
How is SIP maturity value calculated?
A SIP is a series of monthly investments, each compounding for a different length of time. The maturity value is M = P × [((1 + r)^n − 1) ÷ r] × (1 + r), where P is the monthly amount, r is the monthly return (annual rate ÷ 12 ÷ 100) and n is the number of instalments. The trailing (1 + r) reflects investing at the start of each month.
What is rupee cost averaging?
Because you invest a fixed amount every month, you automatically buy more fund units when prices are low and fewer when prices are high. Over time this averages out your purchase cost and removes the need to "time" the market — the main advantage of a SIP over a single lump-sum investment.
Are SIP returns guaranteed?
No. SIPs in equity or hybrid mutual funds are market-linked, so actual returns vary year to year and can be negative in the short term. The percentage you enter here is an assumption for projection only; long-term diversified equity is often modelled around 10–12%, but past performance does not guarantee future results.
How are SIP investments taxed in India?
For equity funds, gains are long-term after one year and taxed as LTCG at 12.5% on gains above ₹1.25 lakh per year; gains within a year are short-term. ELSS SIPs also qualify for a Section 80C deduction up to ₹1.5 lakh a year, with a three-year lock-in. Tax rules change, so confirm current limits before filing.
Related Calculators
Tips
- →Start early — even ₹1,000/month at 12% for 30 years grows to ₹35L+.
- →Step-up your SIP by 10% every year to significantly boost the corpus.
- →ELSS funds qualify for 80C deduction — ₹1.5L max, 3-year lock-in.
- →12% is a reasonable long-term assumption for diversified equity funds.