SIP Calculator
See how your monthly mutual fund SIP investments could grow over time, with an optional annual step-up to match rising income.
Maturity Amount
after 15 years
How SIP Compounding Works
A Systematic Investment Plan invests a fixed amount every month into a mutual fund. Each installment starts compounding from the day it's invested, which means your earliest contributions have the most time to grow, while your most recent contributions have had the least. This is why starting early matters more than investing a larger amount later — time in the market does much of the work.
Disclaimer
This calculator is for illustration only and assumes a constant rate of return, which real mutual fund investments never actually deliver — returns fluctuate year to year. This is not investment advice; consult a registered financial advisor before making investment decisions.
Frequently Asked Questions
How is SIP return calculated?
Each monthly investment compounds at your expected rate of return for the remaining time until maturity. Because every installment is invested at a different point in time, the overall calculation is done month by month rather than with a single lump-sum formula.
What return rate should I assume for equity mutual funds?
Long-term equity mutual fund returns in India have historically averaged roughly 10-14% annually over multi-year periods, though this varies significantly by fund, market cycle, and time horizon. Returns are never guaranteed — use a conservative estimate and treat any projection as indicative, not assured.
What is SIP step-up and should I use it?
A step-up SIP increases your monthly investment by a fixed percentage every year, typically matching salary growth. It meaningfully increases your final corpus compared to a flat SIP of the same starting amount, since later (larger) installments still get years to compound.
Is SIP better than a lumpsum investment?
SIP spreads your investment over time, which reduces the risk of investing a large amount right before a market downturn (rupee-cost averaging). A lumpsum invested early can outperform SIP in a rising market, but carries more timing risk. Most retail investors without a large lumpsum available default to SIP for this reason.