SIP Calculator: Monthly SIP Returns & Step-Up Growth

Use the PlanMyReturns SIP Calculator

Enter your monthly investment, expected return rate, and duration to see your total corpus, a year-wise breakdown, and the difference a step-up SIP makes. Everything runs in your browser. No sign-up, nothing 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. You enter three inputs: your monthly amount, expected annual return, and duration. It returns your projected corpus, the total you invested, and the estimated returns earned.

The PlanMyReturns SIP calculator goes further than a basic tool. It supports step-up SIP, where your monthly amount rises every year. It handles monthly, quarterly, half-yearly, and yearly contributions. And it gives you a full year-by-year breakdown so you can see exactly how your wealth builds.

Features of the PlanMyReturns SIP Calculator

• Monthly investment, duration, and expected return as your three core inputs.
• An advanced panel for annual step-up percentage, to model a rising SIP.
• Contribution frequency: monthly, quarterly, half-yearly, and yearly.
• One-click Quick SIP examples for Starter, Wealth, Retirement, and Car goals.
• A live SIP summary with invested amount, estimated returns, and total value.
• A wealth growth chart plotting invested amount against market value over time.
• A year-wise table showing invested amount, estimated returns, and market value each year.
• Download CSV to export the full schedule.
• Share Image and Share Plan link to save or send your personalised plan.

What Is SIP (Systematic Investment Plan)?

A Systematic Investment Plan, or SIP, is a way of investing a fixed amount into a mutual fund at regular intervals, usually monthly. Instead of putting a lump sum into the market at once, SIP breaks it into smaller, regular contributions.

That gives you two advantages.

Rupee cost averaging. Because you invest at fixed intervals regardless of market level, you buy more units when prices are low and fewer when they are high. Over time your cost per unit averages out.

The power of compounding. Every rupee you invest earns returns, and those returns earn further returns. The longer you stay invested, the harder compounding works for you.

SIP is now the default way Indians build wealth. Per AMFI data, contributing SIP accounts reached 9.90 crore and monthly SIP inflows touched ₹31,961 crore in July 2026, the tenth straight month above ₹31,000 crore. People use SIP for retirement, children’s education, buying a home, and nearly every major goal.

How Much of Your Salary Should Go Into SIP?

If you are starting out, use the 50/30/20 rule. Put 50% of take-home pay toward needs, 30% toward wants, and at least 20% toward savings and investments. Your SIP comes out of that 20%.

On a ₹50,000 monthly salary, that is roughly ₹10,000 toward investments, so a SIP of ₹5,000 to ₹8,000 is a realistic start. The figure matters less than the habit. Begin with an amount you can sustain, then raise it with every increment using step-up SIP.

How Much Does ₹5,000 a Month Grow To?

This is the most searched SIP question in India. The table assumes a 12% annual return, compounded monthly, no step-up. Figures are indicative.

The pattern is clear. Doubling your time does far more than doubling your amount, because the final years carry the heaviest compounding. Run your own figure in the calculator above.

How Does the SIP Calculator Work?

The calculator applies the future value of an annuity formula, month by month.

FV = P × { [(1 + r)ⁿ − 1] / r } × (1 + r)

Where:

• FV is the future value, your final corpus
• P is the monthly SIP amount
• r is the monthly rate of return
• n is the total number of months (years × 12)

For a 12% expected annual return, the calculator converts it to a monthly rate the correct way, compounding it rather than dividing 12 by 12. A flat 1% a month would overstate your corpus. This keeps your estimate in line with how mutual fund platforms present SIP projections.

This is a projection tool. Actual returns depend on your fund’s performance, its expense ratio, any exit load, and the NAV on each purchase date. No calculator can predict these.

A Worked Example

Monthly SIP of ₹10,000, for 15 years, at 12% per year.

• Total invested: ₹18,00,000
• Estimated returns: ₹32,03,000
• Total corpus: ₹50,03,000

Your ₹18 lakh grows to about ₹50 lakh from the discipline of investing ₹10,000 every month.

How Much SIP Do You Need to Reach ₹1 Crore?

At a 12% annual return.

Time matters more than amount. Reaching ₹1 crore needs ₹43,500 a month over 10 years, but only ₹10,000 a month if you start 20 years early. Starting early cuts your required monthly SIP by more than 75%. For goal-first planning, try the Crorepati Calculator.

What Starting One Year Late Costs You

Delay is the most expensive mistake in SIP investing, and it rarely feels like one.

Take a ₹10,000 monthly SIP at 12% for 20 years. Start on time and you build close to ₹1 crore. Delay by one year and you invest for 19 years instead. Your final corpus falls by roughly ₹10 lakh, even though you only skipped 12 instalments of ₹10,000.

The lost year is not the ₹1.2 lakh you skipped. It is the two decades of compounding that money would have earned. This is why the best time to start is now, even with a small amount.

Step-Up SIP vs Regular SIP: Which Builds More Wealth?

A step-up SIP, also called a top-up SIP, raises your monthly investment by a fixed percentage every year. Most investors pick 10%, matching a typical salary increment.

A 10% annual step-up on a ₹5,000 SIP doubles your final corpus versus a flat SIP, without changing your starting amount. As income grows with each raise, investing a little more each year costs little in lifestyle terms but compounds heavily over decades.

Who Should Use Step-Up SIP?

Anyone whose salary grows every year. If you get a 10% raise, directing even half of it into your SIP can reshape your retirement corpus. Enable step-up in the advanced panel above to see the effect on your own numbers.

Weekly, Monthly, Quarterly: Which SIP Frequency Wins?

Monthly SIP wins because it buys units 12 times a year across highs and lows. Quarterly misses 8 months of averaging. Yearly concentrates your whole investment into one market point, which defeats the purpose. Some platforms also offer weekly or daily SIP, but for salaried investors the difference over monthly is tiny, and monthly matches how you get paid. Unless your income arrives quarterly, such as freelance or business income, monthly is the right choice.

SIP vs Lumpsum: Which Is Better?

SIP suits most people because it removes market timing risk and forces discipline. Lumpsum can win in a steadily rising market, but few investors time the market correctly and consistently. Compare both with our SIP vs Lumpsum Calculator.

SIP vs Fixed Deposit

For goals 5 or more years away, equity SIP has historically beaten FDs after inflation and tax. For goals under 3 years, FDs offer predictability SIPs cannot. Run the numbers on our FD Calculator.

Direct Plan vs Regular Plan: The Hidden SIP Cost

Every mutual fund comes in two versions. A regular plan pays a commission to a distributor. A direct plan does not, so its expense ratio is lower, often by 0.5% to 1.5% a year.

That gap looks small but compounds like reverse interest. A ₹10,000 monthly SIP earning 12% before costs can grow to about ₹99.9 lakh over 20 years at a 0.5% expense ratio, but only about ₹87.5 lakh at 1.5%. That 1% difference quietly costs more than ₹12 lakh, deducted from the NAV before your returns are ever shown.

Most SIP calculators, including this one, show returns before expense ratio and exit load. To estimate your real corpus, reduce your expected return by your fund’s expense ratio. For a direct plan at 0.5%, plan at 11.5%. For a regular plan at 1.5%, plan at 10.5%. SEBI made direct plans mandatory for every scheme in 2013 precisely so investors could skip commissions. Choosing direct is one of the simplest ways to keep more of your own growth.

What Return Rate Should You Use?

A realistic guide based on historical mutual fund category performance in India.

For goals more than 10 years out, use moderate. For goals under 5 years, use conservative. Never plan long-term goals with the optimistic column, because markets can disappoint for years before rewarding patience. For most salaried investors planning 15 to 20 years in diversified equity, 12% is a reasonable assumption.

Is Monthly SIP Better Than Quarterly or Yearly?

Covered in the frequency table above. Short answer: monthly, because it averages your cost across the most market points and matches your salary date. Test each option in the advanced panel.

SIP Taxation in India (FY 2025 to 26)

Each SIP instalment is a separate investment with its own purchase date and holding period.

For equity mutual funds:

• Units held over 12 months attract Long-Term Capital Gains tax at 12.5%, and gains up to ₹1.25 lakh per year are exempt.
• Units held under 12 months attract Short-Term Capital Gains tax at 20%.

For debt mutual funds, all gains are added to your income and taxed at your slab rate, regardless of holding period.

For ELSS (Equity Linked Savings Scheme):

• SIP investments up to ₹1.5 lakh a year qualify for deduction under Section 80C.
• There is a 3-year lock-in from each instalment date.
• Gains are taxed as LTCG at 12.5% after lock-in.

When you redeem, each instalment is sold First In, First Out. Rates are per the Income Tax Act as amended by the Finance Act 2024. Plan your tax-saving SIP with our ELSS Calculator.

SIP for NRI Investors

NRIs can invest in Indian mutual funds via SIP, subject to FEMA rules.

NRE account SIPs are fully repatriable, and NRE interest is tax-free in India, though it may be taxable in your country of residence. NRO account SIPs suit income earned in India, with repatriation capped at USD 1 million per financial year and returns taxable in India.

Some fund houses do not accept SIP applications from NRIs in the US or Canada due to FATCA compliance. Check with your fund house first. Use the calculator the same way, entering your monthly amount in INR, and factor in currency conversion if you plan to repatriate.

SIP and Inflation: Real Returns vs Nominal Returns

The calculator shows nominal returns, the value your investment grows to in future rupees. Due to inflation, ₹1 crore in 2046 will buy less than ₹1 crore buys today.

To find your real return:

Real Return = [(1 + Nominal Return) ÷ (1 + Inflation Rate)] − 1

At a 12% nominal return and 6% inflation, your real return is about 5.66% a year.

If your goal is ₹50 lakh in today’s purchasing power over 20 years at 6% inflation, your actual target is roughly ₹1.60 crore. Always set your SIP target above your current-day goal. Our Inflation Calculator shows what your goal will cost in future rupees.

Understanding XIRR vs Absolute Return

Because SIP money goes in at different times, each instalment stays invested for a different length. Your first instalment compounds for the full tenure. Your last barely compounds at all. XIRR, or extended internal rate of return, accounts for this timing. It is the true annualised return on a SIP.

A 12% XIRR does not mean your money doubled in a fixed way. It means each rupee earned an annualised 12% for the period it stayed invested. When comparing funds, compare XIRR, not simple total gain.

Common SIP Mistakes to Avoid

• Stopping the SIP during a market fall. This is when your money buys the most units. Pausing here locks in the loss.
• Chasing last year’s top fund. Past winners often lag next. Stay with a diversified, consistent fund.
• Using an unrealistic return rate. Planning a critical goal at 18% sets you up to fall short.
• Never increasing the amount. A flat SIP for 20 years ignores your rising income. Use step-up.
• Ignoring the expense ratio. A regular plan can quietly cost you lakhs. Prefer direct plans.
• Redeeming early for non-emergencies. Breaking a long SIP interrupts compounding at its most powerful stage.

Expert Tips to Get More From Your SIP

• Automate the SIP on your salary date, so you invest before you spend.
• Enable a 10% annual step-up and treat it as default, not optional.
• Choose direct plans to keep the expense ratio low.
• Keep separate SIPs for separate goals, so tracking stays clean.
• Review once a year, not once a week. SIP rewards patience, not tinkering.

How to Use the PlanMyReturns SIP Calculator

1. Enter your monthly SIP amount. Start with what feels comfortable, raise it later.
2. Set your duration in years. For wealth creation, 10 to 20 years is ideal.
3. Enter the expected annual return, using the return guide above. 12% is common for diversified equity.
4. Open the advanced panel to enable step-up and enter your annual increase, with 10% a common choice.
5. Select frequency: monthly, quarterly, half-yearly, or yearly.
6. Click Calculate. Your corpus, invested amount, estimated returns, wealth chart, and year-wise breakdown appear instantly.
7. Download the CSV or use Share Plan to save or send your result.

SIP Calculator for Common Financial Goals

Pre-set scenarios for India’s most common goals. Run any of these in the calculator above.

All figures are indicative. For retirement, try our Retirement Calculator and FIRE Calculator.

SIP Return Milestones Table (At 12% Expected Return)

Key Takeaways

• SIP builds wealth through rupee cost averaging and compounding over long periods.
• Time matters more than amount. Starting early can cut your required monthly SIP by over 75%.
• A 10% annual step-up can double your corpus versus a flat SIP.
• Choosing direct over regular can save you lakhs in expense ratio over 20 years.
• Use 12% as a moderate assumption for diversified equity over 15 to 20 years.
• SIP returns are market-linked and not guaranteed. Plan with realistic numbers.

Frequently asked questions