SIP Calculator
What a monthly SIP grows to, with an optional yearly step-up, the value in today's rupees and after tax, and what the same SIP actually returned in the Nifty 50.
A ₹10,000 monthly SIP for 10 years at a 12% annual return grows to about ₹22,40,359 from ₹12,00,000 invested. The calculator adds a yearly step-up, a lump sum, the value in today's rupees and after tax, a goal planner, and what the same SIP really returned in the Nifty 50 over the most recent period of that length.
A systematic investment plan (SIP) puts a fixed amount into a mutual fund every month. Each instalment buys units at that month's price, so you buy more units when prices are low and fewer when they are high. The calculator answers the planning questions: what the SIP grows to, how much of that is gain, what it is worth after inflation and tax, and how much you would need to invest each month for a goal.
It also checks the assumption against history. Most SIP calculators stop at an assumed rate; this one replays your monthly amounts in the real Nifty 50, Sensex, Nifty 500 or Bank Nifty, buying at each month-end close, and reports what the SIP would actually be worth today and its XIRR.
How the SIP value is calculated
Each instalment is invested at the start of a month and compounds until the end of the period. With a monthly rate i and n instalments of P, the value is FV = P × [((1 + i)n − 1) / i] × (1 + i).
The monthly rate here is i = (1 + R)1/12 − 1, so twelve months compound to exactly the annual return R you enter: 0.949% a month for 12%. Many calculators instead use R ÷ 12 = 1% a month, which compounds to 12.68% a year and overstates the result. For ₹10,000 a month over 10 years at 12%, that convention gives ₹23,23,391; the exact 12% gives ₹22,40,359.
The year-by-year table shows what you have put in and what it is worth at the end of each year, so you can see the compounding take over in the later years.
Worked examples
Monthly SIPs at a steady assumed return (instalments at the start of each month):
| Monthly SIP | Return | Period | Invested | Value |
|---|---|---|---|---|
| ₹5,000 | 12% | 10 years | ₹6,00,000 | ₹11,20,179 |
| ₹10,000 | 12% | 10 years | ₹12,00,000 | ₹22,40,359 |
| ₹10,000 | 12% | 20 years | ₹24,00,000 | ₹91,98,574 |
| ₹25,000 | 10% | 15 years | ₹45,00,000 | ₹1,00,40,530 |
| ₹10,000 | 8% | 10 years | ₹12,00,000 | ₹18,12,832 |
Doubling the period from 10 to 20 years at 12% multiplies the final value by about 4.1, not 2: the later years compound a much larger balance. Starting early matters more than any other input.
Step-up, lump sum and goals
Salaries rise, so a flat SIP shrinks as a share of income. An annual step-up raises the instalment each year, by a percentage or a fixed amount. The step-up SIP calculator compares a stepped SIP with a flat one in detail.
Add a lump sum at the start if you are investing a bonus alongside the SIP. To plan backwards, enter a target amount in the goal box: it returns the monthly SIP needed, using the same return, period and step-up, with the target in future rupees or in today's rupees.
Inflation: what the final amount buys
A crore in 20 years will not buy what a crore buys today. The calculator divides the final value by (1 + inflation)years to show it in today's rupees. At 6% inflation, prices roughly double in 12 years and treble in 19. Plan goals in today's rupees and let the goal box grow them for you.
Tax on SIP returns
Every SIP instalment is a separate purchase with its own holding period. When you redeem, units held over 12 months are long-term and the rest short-term. The calculator's after-tax figure assumes you redeem everything at the end, in one financial year, from an equity fund, and applies the rates instalment by instalment.
Equity mutual funds (and stocks) held over 12 months: long-term gains above ₹1.25 lakh in a financial year are taxed at 12.5%; held 12 months or less: 20%. Health and education cess of 4% applies on top. Debt funds bought on or after 1 April 2023 are taxed at your slab rate however long you hold them.
Spreading redemptions over several financial years uses the ₹1.25 lakh exemption more than once and lowers the tax. ELSS funds lock each instalment for three years from its own date.
What an index SIP actually returned
Assumed returns are smooth; markets are not. The 'same SIP in a real index' panel buys index units with your amounts at each month-end close over the most recent stretch of your chosen length, and values them at the latest close. The XIRR it shows is the return you would really have earned, which can be well above or below the rate you assumed, depending on when the period started and ended. It uses the price index, without dividends, so an index fund would have done slightly better before costs.
Limits of any SIP calculator
Returns are not steady: the order of good and bad years changes the final value of a SIP even when the average return is the same. Expense ratios (0.1-2% a year) come out of the fund's return, so use a net figure. Exit loads, missed instalments and changes to tax law are not modelled.
Key takeaways
- ₹10,000 a month for 10 years at 12% grows to about ₹22,40,359 from ₹12,00,000 invested.
- The exact monthly rate is (1 + R)^(1/12) − 1; dividing by 12 overstates the result.
- Time in the market does most of the work: 20 years is far more than twice 10 years.
- Check the value in today's rupees and after tax, not just the headline figure.
- The real-index replay shows what the same SIP actually returned, not what was assumed.
Frequently asked questions
How is SIP return calculated?
Each monthly instalment compounds from the month it is invested to the end of the period. The value is FV = P × [((1 + i)^n − 1) / i] × (1 + i), where P is the instalment, n the number of months and i the monthly rate. The return over the whole SIP is best measured as XIRR, because each instalment was invested for a different length of time.
What is the return on ₹10,000 SIP for 10 years?
At a steady 12% a year it grows to about ₹22,40,359 from ₹12,00,000 invested; at 10% to about ₹20,14,576; at 8% to about ₹18,12,832. Real funds do not return a steady rate, so the outcome will differ.
What return should I assume for a SIP?
There is no right number. Broad Indian equity indices have compounded at roughly 10-13% a year over long periods, with long stretches well below that. Test 8%, 10% and 12% and check the real-index panel, which shows what the Nifty 50 actually returned over the same length of time.
Why does this calculator show less than other SIP calculators?
Many calculators divide the annual rate by 12 and compound monthly, which turns 12% into 12.68% a year. This one uses the monthly rate that compounds to exactly the rate you enter. The difference grows with the period.
Is a SIP better than a lump sum?
If you have the money today, investing it at once has historically done better more often than not, because markets rise more often than they fall. A SIP suits money that arrives monthly, and it spreads the risk of investing just before a fall. See the lumpsum calculator for the comparison.
How much SIP do I need for ₹1 crore?
At 12% a year, about ₹10,871 a month for 20 years, or ₹21,011 a month for 15 years. A 10% yearly step-up lowers the starting SIP to about ₹12,085 for 15 years. Use the goal box for your own numbers.
How are SIP returns taxed?
Equity mutual funds (and stocks) held over 12 months: long-term gains above ₹1.25 lakh in a financial year are taxed at 12.5%; held 12 months or less: 20%. Health and education cess of 4% applies on top. Debt funds bought on or after 1 April 2023 are taxed at your slab rate however long you hold them. Each instalment has its own holding period, so a SIP redeemed in full usually has both long-term and short-term gains.
What is an inflation-adjusted SIP value?
The final value expressed in today's purchasing power: value ÷ (1 + inflation)^years. At 6% inflation over 20 years, a rupee then buys about 31 paise of today's goods.
Does the SIP date matter?
Over long periods, very little: every date catches some highs and some lows, so the differences mostly cancel out. Pick a date just after your salary arrives so the debit never bounces.
What is XIRR in a SIP?
The annualised return that accounts for each instalment's date. Funds and apps report SIP returns as XIRR. Use the XIRR calculator for your own dated cash flows.
Can I stop or skip a SIP?
Yes. A SIP can be paused, stopped or changed at any time; the units already bought stay invested. Missed instalments are not modelled here.