SIP Calculator
Plan your Systematic Investment Plan and see how small monthly contributions can grow into a significant corpus over time. Enable Step-Up SIP to model annual increases in your investment.
Maturity Value
₹11,61,695.38
Total Invested
₹6,00,000
Estimated Returns
₹5,61,695
Wealth Gain Ratio
0.94x
Investment Growth Over Time
- Invested
- Returns
Year-by-Year Breakdown
| Year | Total Invested | Portfolio Value | Returns |
|---|---|---|---|
| 1 | ₹60,000 | ₹64,047 | ₹4,047 |
| 2 | ₹1,20,000 | ₹1,36,216 | ₹16,216 |
| 3 | ₹1,80,000 | ₹2,17,538 | ₹37,538 |
| 4 | ₹2,40,000 | ₹3,09,174 | ₹69,174 |
| 5 | ₹3,00,000 | ₹4,12,432 | ₹1,12,432 |
| 6 | ₹3,60,000 | ₹5,28,785 | ₹1,68,785 |
| 7 | ₹4,20,000 | ₹6,59,895 | ₹2,39,895 |
| 8 | ₹4,80,000 | ₹8,07,633 | ₹3,27,633 |
| 9 | ₹5,40,000 | ₹9,74,108 | ₹4,34,108 |
| 10 | ₹6,00,000 | ₹11,61,695 | ₹5,61,695 |
How is SIP Return Calculated?
SIP returns are calculated using the future value of an annuity formula, where each monthly instalment earns compound interest for the remaining tenure:
- M = Maturity Value
- P = Monthly Investment Amount
- r = Monthly Return Rate (Annual Rate ÷ 12 ÷ 100)
- n = Total Number of Months (Duration × 12)
With Step-Up SIP, the monthly amount increases by the step-up percentage each year, and each year's contributions are calculated separately before being compounded together.
Frequently Asked Questions
What is a SIP? ▼
A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly — typically monthly — into mutual funds. It leverages rupee cost averaging and the power of compounding to build wealth over time without requiring a large lump sum upfront.
What is Step-Up SIP? ▼
Step-Up SIP (also called Top-Up SIP) allows you to increase your monthly investment by a fixed percentage each year. For example, a 10% step-up on a ₹5,000 SIP means you invest ₹5,500 in year 2, ₹6,050 in year 3, and so on. This aligns your investments with income growth and significantly boosts your final corpus.
What is a good expected return rate for SIP? ▼
Historically, large-cap equity mutual funds in India have delivered 10–12% CAGR over long periods. Mid-cap and small-cap funds may offer higher returns (12–15%) but with greater volatility. Debt funds typically return 6–8%. Use 10–12% as a conservative estimate for equity SIPs over 10+ year horizons.
How does the Wealth Gain Ratio help me? ▼
The Wealth Gain Ratio shows how many times your returns are relative to your total investment. A ratio of 2x means your returns equal twice what you put in — your money tripled. It's a quick way to gauge the power of compounding at a glance without needing to compare absolute numbers.
Is SIP better than a lump sum investment? ▼
Both have their merits. SIP reduces timing risk through rupee cost averaging — you buy more units when prices are low and fewer when high. Lump sum can outperform in a consistently rising market. For most retail investors, SIP is preferred because it instils financial discipline and doesn't require market timing.