SIP Calculator
Calculate returns on your Systematic Investment Plan with year-wise breakdown
Maturity Value
₹25,22,880
Total Invested
₹9,00,000
35.7%
Total Returns
₹16,22,880
64.3%
Year-wise Growth Breakdown
| Year | Total Invested | Est. Returns | Total Value | Growth |
|---|---|---|---|---|
| Year 1 | ₹60,000 | ₹4,047 | ₹64,047 | 6.3% |
| Year 2 | ₹1,20,000 | ₹16,216 | ₹1,36,216 | 11.9% |
| Year 3 | ₹1,80,000 | ₹37,538 | ₹2,17,538 | 17.3% |
| Year 4 | ₹2,40,000 | ₹69,174 | ₹3,09,174 | 22.4% |
| Year 5 | ₹3,00,000 | ₹1,12,432 | ₹4,12,432 | 27.3% |
| Year 6 | ₹3,60,000 | ₹1,68,785 | ₹5,28,785 | 31.9% |
| Year 7 | ₹4,20,000 | ₹2,39,895 | ₹6,59,895 | 36.4% |
| Year 8 | ₹4,80,000 | ₹3,27,633 | ₹8,07,633 | 40.6% |
| Year 9 | ₹5,40,000 | ₹4,34,108 | ₹9,74,108 | 44.6% |
| Year 10 | ₹6,00,000 | ₹5,61,695 | ₹11,61,695 | 48.4% |
| Year 11 | ₹6,60,000 | ₹7,13,074 | ₹13,73,074 | 51.9% |
| Year 12 | ₹7,20,000 | ₹8,91,261 | ₹16,11,261 | 55.3% |
| Year 13 | ₹7,80,000 | ₹10,99,656 | ₹18,79,656 | 58.5% |
| Year 14 | ₹8,40,000 | ₹13,42,090 | ₹21,82,090 | 61.5% |
| Year 15 | ₹9,00,000 | ₹16,22,880 | ₹25,22,880 | 64.3% |
SIP Investment Guide — Build Wealth Systematically
A Systematic Investment Plan (SIP) is one of the most powerful and accessible wealth-building tools available to retail investors in India. By investing a fixed amount every month in a mutual fund, you harness the twin forces of rupee cost averaging and compounding to grow your wealth significantly over time — without needing to time the market.
The Mathematics of SIP — Why It Works
The SIP formula is: M = P × [(1+r)^n − 1] / r × (1+r), where M is the maturity amount, P is the monthly investment, r is the monthly rate of return, and n is the total number of months. The key insight is that this is an exponential function — the longer you invest, the faster your wealth grows. A ₹5,000/month SIP at 12% for 15 years grows to approximately ₹25 lakh, but extending it to 25 years takes it to over ₹95 lakh — nearly 4× more for just 10 extra years.
Rupee Cost Averaging — Your Shield Against Volatility
When markets fall, your fixed SIP amount buys more units. When markets rise, it buys fewer. Over time, this averages out your cost per unit to below the average market price — a phenomenon called rupee cost averaging. This is why SIP investors often outperform those who try to time the market with lump sum investments.
Choosing the Right Mutual Fund for SIP
Large-cap funds: Lower risk, 10–12% expected returns. Suitable for conservative investors with 5+ year horizon.
Mid-cap funds: Moderate risk, 13–16% expected returns. Suitable for 7+ year horizon.
Small-cap funds: Higher risk, 15–20% potential returns. Suitable for 10+ year horizon with high risk tolerance.
ELSS funds: Tax-saving equity funds with 3-year lock-in. Qualifies for Section 80C deduction up to ₹1.5 lakh.
Step-Up SIP — Accelerate Your Wealth
A Step-Up SIP (also called Top-Up SIP) lets you increase your monthly investment by a fixed amount or percentage each year. If you start with ₹5,000/month and increase by 10% annually, your wealth at the end of 20 years is dramatically higher than a flat ₹5,000 SIP. This aligns with the natural growth of your salary over time.
SIP vs Lump Sum — When to Use Which
SIP is ideal when you have a regular income and want to invest monthly. It removes the need to time the market. Lump sum investment works better when you have a large amount and markets are at a significant low. For most salaried individuals, SIP is the default choice because it enforces financial discipline and automates investing.
Tax Implications of SIP
Each SIP installment is treated as a separate investment for tax purposes. For equity funds, gains on units held for more than 12 months are Long-Term Capital Gains (LTCG), taxed at 10% above ₹1 lakh per year. Gains on units held for less than 12 months are Short-Term Capital Gains (STCG), taxed at 15%. ELSS SIPs qualify for Section 80C deduction.
Common SIP Mistakes to Avoid
- Stopping SIP during market downturns — this is exactly when you should continue or increase
- Choosing funds based on recent 1-year returns instead of 5–10 year track record
- Not reviewing your portfolio annually
- Investing in too many funds — 3–5 well-chosen funds are sufficient
- Ignoring expense ratio — even 0.5% difference compounds significantly over 20 years