Mutual Funds
SIP Calculator
Calculate the maturity value of your SIP (Systematic Investment Plan) and see how compounding multiplies your wealth over time. A ₹5,000/month SIP at 12% annual return for 20 years grows to over ₹49 lakh — from just ₹12 lakh invested, a 311% wealth gain.
India's monthly SIP inflows crossed ₹23,000 crore in FY 2024-25. Use this calculator to set realistic goals for retirement, your child's education, or a home purchase — and see exactly how much you need to invest each month to get there.
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What is SIP and How Does it Work?
A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund at regular intervals — monthly, weekly, or quarterly. Your money buys more units when prices are low and fewer when high, averaging out the cost over time (rupee cost averaging).
The key growth driver is compounding: returns earned in earlier periods themselves earn returns in later periods. A ₹5,000/month SIP at 12% p.a. for 20 years turns ₹12L invested into over ₹49L — a wealth gain of 311%.
SIP Formula
The maturity value (FV) of a SIP is calculated using the compound interest formula for recurring payments:
Where P = monthly investment, r = monthly rate (annual rate ÷ 12 ÷ 100), n = total months.
SIP vs Lump Sum
Lump sum investing works better in rising markets; SIP works better in volatile or falling markets due to cost averaging. For most retail investors without the ability to time the market, SIP is the recommended approach — it enforces financial discipline and removes emotional decision-making.
Frequently Asked Questions
What is a good SIP return rate to expect in India?▼
Equity mutual funds in India have historically delivered 10–14% annual returns over 10+ year periods. Large-cap funds average 10–12%, mid-cap funds 12–15%, and small-cap funds 13–18% (with higher volatility). A conservative planning rate of 10–12% p.a. is commonly used.
What is the minimum SIP amount?▼
Most mutual funds in India allow SIPs starting at ₹100–₹500 per month. Several AMCs have removed minimum investment limits for specific schemes. You can start SIPs on platforms like Groww, Zerodha Coin, or directly through the AMC website.
Can I stop or pause a SIP?▼
Yes, you can pause a SIP for 1–3 months or stop it entirely online through your fund platform. There is no penalty for stopping a SIP, though some ELSS (tax-saving) SIPs have a 3-year lock-in per instalment.
Is SIP return guaranteed?▼
No. SIP returns depend on the market performance of the underlying mutual fund. Equity SIPs carry market risk. However, historically, equity SIPs held for 7+ years have rarely generated negative returns in India.
Does SIP qualify for tax deduction?▼
SIPs in ELSS (Equity Linked Savings Scheme) qualify for deduction up to ₹1.5L per year under Section 80C. Regular equity or debt mutual fund SIPs do not give upfront tax deductions, but LTCG up to ₹1.25L per year is tax-free (from FY 2024-25).
What happens to SIP if the market crashes?▼
If the market falls, your SIP buys more units at lower prices — this is rupee cost averaging working in your favour. Historically, investors who continued SIPs through crashes (2008, 2020) saw the best long-term results by capturing the recovery at low prices.