📈 SIP Calculator
Estimate your mutual fund SIP returns with year-by-year growth breakdown.
Frequently Asked Questions
How do I use the SIP Calculator?
Enter your Monthly Investment, Expected Annual Return, and Investment Period in years. Optionally enable Step-up SIP and set an annual increase percentage. Click Calculate to see your Estimated Returns, Total Invested, Wealth Gained, and a year-by-year growth chart and table.
How is SIP return calculated?
The future value of a SIP is calculated using FV = P × [((1 + r)n − 1) / r] × (1 + r), where P is the monthly investment, r is the monthly rate of return (annual rate ÷ 12 ÷ 100), and n is the total number of months. Wealth Gained = FV − Total Invested.
What is a Step-up SIP?
A Step-up SIP increases your monthly investment amount by a fixed percentage every year, helping your investments keep pace with rising income and accelerating wealth creation compared to a flat SIP of the same starting amount.
What does "Annualised Return (XIRR approx.)" mean?
It's an approximation of the annualised rate of return on your SIP investments, accounting for the fact that each instalment is invested at a different point in time. It is shown for reference and may differ slightly from the exact XIRR computed by mutual fund platforms.
Is the expected return rate guaranteed?
No. The "Expected Annual Return" is an assumption you provide for illustration. Actual mutual fund returns fluctuate with market performance and are not guaranteed — this calculator is for planning purposes only, not financial advice.
How does investment period affect SIP returns?
A longer investment period allows compounding to work over more cycles, so the proportion of wealth gained from returns (versus the amount actually invested) grows significantly with time, even at the same monthly contribution and rate. If you're investing a one-time amount instead of monthly, see our Lumpsum Calculator.
How are SIP gains taxed in equity mutual funds?
Each SIP instalment is treated as a separate investment for tax purposes, with its own holding period. For equity funds, units held over 12 months qualify for long-term capital gains (LTCG) tax at 12.5% above ₹1.25 lakh of gains per year, while units held 12 months or less are taxed as short-term capital gains (STCG) at 20%. So when you redeem, your earliest instalments may be taxed differently from your most recent ones.
Does the date I choose for my SIP each month affect returns?
This calculator assumes a constant monthly rate of return and doesn't model specific SIP dates (1st, 5th, 15th, etc.) or market timing within the month. In practice, the actual date has minimal long-term impact since SIPs are designed to average out purchase costs (rupee cost averaging) across market ups and downs over time.