| Year | Invested Amount | Estimated Returns | Market Value |
|---|
Use the PlanMyReturns SIP calculator to estimate how much wealth your Systematic Investment Plan can build over time. Enter your monthly investment, expected return rate, and duration to instantly see your total corpus, year-wise breakdown, and the powerful difference a step-up SIP makes. All calculations run in your browser, no sign-up, no data stored.
What Is a SIP Calculator?
A SIP calculator is a free online tool that estimates how much your monthly mutual fund investment will grow over a chosen period. It takes three inputs: monthly amount, expected annual return, and investment duration, and shows you your projected corpus, total amount invested, and estimated returns earned.
The PlanMyReturns SIP calculator goes further. It also supports step-up SIP (where your monthly investment increases every year), multiple contribution frequencies (monthly, quarterly, half-yearly, yearly), and a full year-by-year investment breakdown so you can see exactly how your wealth builds over time.
What Is SIP (Systematic Investment Plan)?
A Systematic Investment Plan, commonly called SIP, is a method of investing a fixed amount into a mutual fund at regular intervals, typically every month. Instead of putting a large lump sum into the market at once, SIP breaks your investment into smaller, regular contributions.
This gives you two powerful advantages:
Rupee cost averaging: Because you invest at regular intervals regardless of market conditions, you buy more units when prices are low and fewer when prices are high. Over time, this averages out your cost per unit.
The power of compounding: Every rupee you invest starts earning returns, and those returns earn further returns. The longer you stay invested, the more dramatically compounding works in your favour.
SIP is used for long-term wealth creation, retirement planning, funding children’s education, buying a home, and nearly every major financial goal.
How Does the SIP Calculator Work?
The calculator uses the standard future value of an annuity formula, applied month by month for precision:
FV = P × { [(1 + r)ⁿ − 1] / r } × (1 + r)
Where:
- FV = Future value (your final corpus)
- P = Monthly SIP amount
- r = Monthly interest rate (Annual rate ÷ 12)
- n = Total number of months (Years × 12)
Important: The monthly rate is not simply the annual rate divided by 12. The correct conversion is:
Monthly rate = (1 + Annual rate)^(1/12) − 1
For example, at 12% annual return: Monthly rate = (1.12)^(1/12) − 1 = 0.9489% per month (not 1%).
Using 1% would overstate results. PlanMyReturns uses the correct formula.
Worked example:
Monthly SIP: ₹10,000 | Duration: 15 years | Return: 12% p.a.
- Total invested: ₹18,00,000
- Estimated returns: ₹32,03,000
- Total corpus: ₹50,03,000
That means your money nearly triples ₹18 lakh invested grows to ₹50 lakh .simply from the discipline of investing ₹10,000 every month.
How Much SIP Do You Need to Reach ₹1 Crore?
This is the most searched SIP question in India. Here is the answer at 12% annual return:
| Target Corpus | Investment Duration | Monthly SIP Needed |
|---|---|---|
| ₹25 Lakh | 10 years | ₹10,900/month |
| ₹50 Lakh | 15 years | ₹9,500/month |
| ₹50 Lakh | 10 years | ₹22,200/month |
| ₹1 Crore | 20 years | ₹10,000/month |
| ₹1 Crore | 15 years | ₹20,000/month |
| ₹1 Crore | 10 years | ₹43,500/month |
| ₹2 Crore | 20 years | ₹20,000/month |
| ₹5 Crore | 25 years | ₹20,000/month |
The table above shows a critical insight: time matters more than amount. To reach ₹1 crore, you need ₹43,500/month if you start for 10 years, but only ₹10,000/month if you start 20 years early. Starting early cuts your required monthly SIP by more than 75%.
Use the SIP calculator above to find your exact number based on your own timeline and return assumption.
Step-Up SIP vs Regular SIP: Which Builds More Wealth?
A step-up SIP (also called a top-up SIP) automatically increases your monthly investment by a fixed percentage every year. Most investors increase by 10% annually ,matching their typical salary increment.
Why does this matter so much?
| Scenario | Monthly Start | Annual Step-Up | Duration | 12% Return | Final Corpus |
|---|---|---|---|---|---|
| Regular SIP | ₹5,000 | None | 20 years | 12% | ₹49.9 Lakh |
| Step-Up SIP | ₹5,000 | 10% per year | 20 years | 12% | ₹1.06 Crore |
| Step-Up SIP | ₹5,000 | 15% per year | 20 years | 12% | ₹1.65 Crore |
A 10% annual step-up on a ₹5,000 SIP doubles your final corpus compared to a flat SIP, without changing your starting amount.
The logic is simple: as your income grows with each salary increment, investing a slightly higher amount each year costs you little in terms of lifestyle but compounds massively over decades.
Who should use step-up SIP? Anyone with a salaried income that grows annually. If you receive a 10% raise, directing even half of that increment into your SIP can make a transformational difference to your retirement corpus.
What Return Rate Should You Use?
This is where most investors get confused. Here is a realistic guide based on historical mutual fund category performance in India:
| Fund Category | Conservative Estimate | Moderate Estimate | Optimistic Estimate |
|---|---|---|---|
| Large Cap Equity | 9% | 11% | 13% |
| Flexi Cap / Multi Cap | 10% | 12% | 15% |
| Mid Cap Equity | 11% | 13% | 16% |
| Small Cap Equity | 12% | 15% | 20% |
| ELSS (Tax Saving) | 10% | 12% | 15% |
| Hybrid / Balanced | 8% | 10% | 12% |
| Debt Funds | 6% | 7% | 8% |
| Liquid / Overnight | 5% | 6% | 7% |
Recommendation: For goal planning 10+ years away (retirement, child’s education), use the moderate estimate. For goals under 5 years, use the conservative estimate. Never plan long-term goals using the optimistic column ,markets can disappoint for years before rewarding patience.
For most salaried investors planning for 15–20 years in diversified equity mutual funds, 12% is a reasonable and commonly used planning assumption.
Is Monthly SIP Better Than Quarterly or Yearly?
Most investors choose monthly SIP, and for good reason.
| Feature | Monthly SIP | Quarterly SIP | Yearly SIP |
|---|---|---|---|
| Cost averaging frequency | High (12x/year) | Medium (4x/year) | Low (1x/year) |
| Alignment with salary | Perfect | Manageable | Inconvenient |
| Market volatility benefit | Maximum | Moderate | Minimal |
| Corpus difference (20 yrs, ₹5K) | ₹49.9L | ₹49.1L | ₹47.8L |
Monthly SIP wins because it buys mutual fund units 12 times a year across market highs and lows. Quarterly SIP misses 8 months of cost averaging. Yearly SIP concentrates your entire investment into one market point, defeating the purpose.
Unless your income arrives quarterly (such as freelance or business income), monthly SIP is the right choice.
SIP vs Lumpsum: Which Is Better?
| Feature | SIP | Lumpsum |
|---|---|---|
| Best for | Salaried investors | Investors with idle corpus |
| Market timing risk | Low: averaged across months | High: all-in at one price |
| Minimum to start | As low as ₹100/month | Usually ₹500–₹5,000 one time |
| Rupee cost averaging | Yes | No |
| Discipline required | Built-in (automated) | Self-managed |
| Performance in rising market | Slightly lower | Higher |
| Performance in volatile market | Better | Can be worse |
| Tax treatment | Each instalment has its own holding period | One holding period from investment date |
Bottom line: SIP is better for most people because it removes market timing risk and forces investing discipline. Lumpsum can outperform in a continuously rising market, but few investors can correctly time the market consistently. For salaried individuals, SIP is almost always the right choice.
SIP vs Fixed Deposit
| Feature | SIP (Equity MF) | Fixed Deposit |
|---|---|---|
| Expected returns | 10–15% (market-linked) | 6.5–7.5% (fixed) |
| Inflation protection | Good (returns above inflation) | Poor (real returns near zero) |
| Capital guarantee | No | Yes (up to ₹5L via DICGC) |
| Liquidity | High (can redeem anytime) | Medium (premature withdrawal penalty) |
| Tax on gains | LTCG 12.5% (above ₹1.25L) | As per income tax slab |
| Tax saving option | ELSS SIP (Section 80C) | 5-year tax-saver FD (Section 80C) |
| Minimum investment | ₹100/month | ₹1,000 typically |
| Best for | Long-term (5+ years) | Short-term or capital preservation |
For goals 5+ years away, SIP in equity mutual funds has historically outperformed FDs significantly after accounting for inflation and taxes. For goals under 3 years, FDs offer predictability and capital safety that SIPs cannot guarantee.
SIP Taxation in India (FY 2025–26)
Each SIP instalment is treated as a separate investment with its own purchase date and holding period.
For Equity Mutual Funds:
- Gains from units held more than 12 months → Long-Term Capital Gains (LTCG) taxed at 12.5% (gains above ₹1.25 lakh per year are exempt)
- Gains from units held less than 12 months → Short-Term Capital Gains (STCG) taxed at 20%
For Debt Mutual Funds:
- All gains (regardless of holding period) are added to your income and taxed at your applicable income tax slab rate.
For ELSS (Equity Linked Savings Scheme):
- SIP investments up to ₹1.5 lakh per year qualify for deduction under Section 80C
- Mandatory 3-year lock-in from each instalment date
- Gains taxed as LTCG at 12.5% after the lock-in period
Important: When you redeem a SIP investment, each instalment is redeemed using FIFO (First In, First Out). The units bought first are considered sold first, which is important for calculating your holding period on each unit.
SIP for NRI Investors
Non-Resident Indians (NRIs) can invest in mutual funds via SIP in India, subject to FEMA regulations.
- NRE account SIPs: Investments and returns are fully repatriable. Interest earned in NRE accounts is tax-free in India (though taxable in your country of residence).
- NRO account SIPs: Suitable for income earned in India. Repatriation has limits (up to USD 1 million per financial year). Returns are taxable in India.
Note: Some mutual fund houses do not accept SIP applications from NRIs based in the US or Canada due to FATCA and FBAR compliance requirements. Check with your fund house before investing.
Use the SIP calculator above in the same way, enter your monthly SIP amount in INR equivalent. If planning repatriation, also factor in currency conversion rates when projecting your real returns in your home currency.
SIP and Inflation: Real Returns vs Nominal Returns
The SIP calculator shows nominal returns, the total value your investment grows to in future rupees. But due to inflation, ₹1 crore in 2045 will buy less than ₹1 crore buys today.
To find your real return, use this formula:
Real Return = [(1 + Nominal Return) ÷ (1 + Inflation Rate)] − 1
At 12% nominal return and 6% inflation: Real return ≈ 5.66% per year.
Practical implication: If your goal is ₹50 lakh in today’s purchasing power and your investment horizon is 20 years at 6% inflation, your actual target corpus should be approximately ₹1.60 crore (₹50L × 1.06²⁰).
Always set your SIP target at 2–3x your current-day goal to account for inflation. Use our Inflation Calculator to calculate exactly how much your goal will cost in future rupees.
How to Use the PlanMyReturns SIP Calculator
- Enter your monthly SIP amount: the fixed amount you plan to invest each month. Start with what is comfortable; you can always increase it later.
- Set your investment duration: how many years you plan to continue the SIP. For wealth creation goals, 10–20 years is ideal.
- Enter the expected annual return: Use the return rate guide above based on your fund category. 12% is a common assumption for diversified equity funds.
- Enable step-up (optional): if you expect your income to grow, enable the annual step-up feature and enter your percentage increase (10% is a common choice).
- Select contribution frequency: monthly, quarterly, half-yearly, or yearly.
- Click Calculate: your results appear instantly, including total corpus, invested amount, estimated returns, wealth chart, and year-wise breakdown.
- Download or share: export the year-wise data as a CSV, or share your personalised SIP plan via a link.
SIP Calculator for Common Financial Goals
Here are pre-set scenarios for India’s most common financial goals. Use the calculator above to run any of these:
| Goal | Horizon | Assumed Return | Required Monthly SIP |
|---|---|---|---|
| Child’s graduation fund (₹20L) | 15 years | 12% | ₹3,800/month |
| Child’s marriage fund (₹30L) | 18 years | 12% | ₹3,200/month |
| Down payment for home (₹25L) | 8 years | 10% | ₹18,500/month |
| Dream vacation abroad (₹5L) | 3 years | 8% | ₹13,100/month |
| Emergency fund (₹10L) | 5 years | 7% | ₹13,800/month |
| Retirement corpus (₹2 Crore) | 25 years | 12% | ₹8,000/month |
| Financial independence (₹5 Crore) | 25 years | 12% | ₹20,000/month |
All figures are indicative. Use the calculator above with your specific goal amount, timeline, and return assumption for a personalised result.
Frequently asked questions
The SIP calculator uses the future value of an annuity formula: FV = P × {[(1 + r)ⁿ − 1] / r} × (1 + r), where P is the monthly investment, r is the monthly interest rate (calculated as (1 + annual rate)^(1/12) − 1), and n is the number of months. PlanMyReturns applies month-by-month compounding for accuracy, which gives more realistic results than simple annual compounding.
At 12% annual return, you need approximately ₹10,000/month for 20 years to reach ₹1 crore. If you have only 15 years, the required SIP rises to ₹20,000/month. With just 10 years, you need around ₹43,500/month. The key takeaway: the earlier you start, the smaller the monthly investment needed. Use the SIP calculator above to find your exact number.
No. SIP returns are market-linked and depend on the performance of the mutual fund scheme you invest in. Equity funds can deliver high returns over long periods but carry short-term volatility. Debt fund SIPs offer more stability but lower returns. The figures shown in this calculator are projections based on your assumed return rate, not guaranteed outcomes. Mutual fund investments are subject to market risks.
A step-up SIP (also called a top-up SIP) increases your monthly investment by a fixed percentage every year. For example, if you start with ₹5,000/month and set a 10% annual step-up, you invest ₹5,500 in year 2, ₹6,050 in year 3, and so on. Over 20 years at 12% return, a 10% step-up SIP generates approximately twice the corpus of a flat ₹5,000 SIP, making it one of the most powerful wealth-building strategies for salaried investors.
Yes, for most investors. Monthly SIP provides 12 cost-averaging opportunities per year versus only 4 for quarterly SIP. This means you buy mutual fund units at 12 different price points, smoothing out market volatility more effectively. Monthly SIP also aligns with the salary cycle of most salaried individuals, making it easier to automate and maintain discipline.
Use 10–12% for large-cap and flexi-cap equity mutual funds, 12–15% for mid-cap and small-cap funds, and 6–8% for debt funds. For conservative long-term planning (retirement, child’s education), use 10–11%. For moderate planning with a 15–20 year horizon in diversified equity, 12% is widely used. Avoid using optimistic numbers (15%+) for critical goals, actual returns vary by fund, market cycle, and economic conditions.
Yes. You can pause a SIP for 1–3 months or cancel it entirely through your mutual fund platform or broker app, with no penalty. However, pausing frequently breaks your compounding momentum and reduces the final corpus. If finances are tight temporarily, it is better to reduce your SIP amount rather than stop it. Restarting after a long gap also means missing out on rupee cost averaging during the pause period.
During a market crash, your SIP buys more mutual fund units at lower prices. This is beneficial for long-term investors, as it lowers your average cost per unit significantly. Historically, investors who continued SIPs during the 2008 financial crisis and the 2020 COVID crash saw substantial gains when markets recovered. Stopping your SIP during a crash locks in losses and eliminates the benefit of cost averaging at low prices, the opposite of what you should do.