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SIP Calculator — Systematic Investment Plan Returns

SIP is the simplest way to invest in mutual funds. Put in a fixed amount every month and let compounding do the heavy lifting over time.

Corrected 29 August 2026. An earlier version of this page excluded target variable pay from both received cash and taxable salary, which understated income tax. Figures are recalculated under model PS-A3. What changed →

Short answer: a monthly SIP grows by M × ((1+r)^n − 1) ÷ r × (1+r). At 12% a year, ₹5,000 a month becomes ₹11.62 lakh in 10 years against ₹6 lakh invested — so roughly ₹5.6 lakh of it is compounding rather than contribution.

Monthly SIP Amount
Expected Annual Return
Investment Period
Amount Invested
Wealth Gained
Total Amount Invested—
Estimated Returns—
Total Future Value—

Rates and slabs are indicative, as of August 2026

Why SIP Works Better Than Lump Sum for Most People

The biggest advantage of SIP is not the returns — it is the discipline. When you set up a SIP, a fixed amount is automatically deducted from your bank account every month. You do not have to remember to invest, time the market, or panic when markets fall. In fact, when markets fall, your SIP buys more units at lower prices — this is called rupee cost averaging, and it smoothens out volatility over the long term.

Consider this: if you had started a ₹5,000 monthly SIP in a Nifty 50 index fund 15 years ago, your total investment of ₹9 lakh would be worth approximately ₹25-30 lakh today. The power of starting early and staying consistent cannot be overstated. Every year you delay costs you significantly in the long run.

💡 The 15x15x15 Rule: If you invest ₹15,000 per month in equity mutual funds for 15 years at 15% average return, your corpus will be approximately ₹1 crore. Total investment is only ₹27 lakh — compounding does the rest. This is the most practical path to ₹1 crore for a middle-class Indian.

How to Start a SIP in 10 Minutes

Starting a SIP is surprisingly simple these days. Download a SEBI-registered app like Groww, Zerodha Coin, or Kuvera — all are free. Complete KYC with PAN and Aadhaar (5 minutes). Search for a Nifty 50 Index Fund from UTI, HDFC, or ICICI. Set up a monthly SIP for whatever you can afford — even ₹500 is a perfectly fine starting point. Then forget about it and let it grow.

For beginners, index funds are the best starting point because they simply track the market index, have low expense ratios, and have outperformed most actively managed funds over 10+ year periods. You do not need to pick stocks or understand technical charts — just stay invested consistently.

⚠️ Disclaimer: Mutual fund investments are subject to market risks. Past performance does not guarantee future results. The returns shown in this calculator are hypothetical projections, not guaranteed returns. Read all scheme documents carefully before investing.

Also explore: PPF Calculator for risk-free returns, FD Calculator for guaranteed returns, or our guide on How to Start SIP as a Beginner.

Sources

The official pages this page is checked against. If one of them disagrees with us, it wins.

Written and checked by the PaisaSamajh editorial desk · Last reviewed: 24 August 2026 · How we check this →