SIP Calculator

Calculate returns on Systematic Investment Plan (SIP) in mutual funds

SIP Details

Monthly Investment (₹)

Expected Annual Return (%)

Investment Duration (Years)

Enter SIP details and click Calculate

How to Use

Enter your Monthly SIP Amount — the fixed sum you will invest every month.
Enter the Expected Annual Return (%) — use 10–12% for equity, 6–7% for debt funds as a rough estimate.
Enter the Investment Period in years.
Click Calculate — see Invested Amount, Estimated Returns, and Total Corpus.

What is a SIP?

A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund scheme every month — similar to an RD, but in the stock or bond market. SIPs take advantage of rupee cost averaging: you buy more units when markets fall and fewer when they rise, smoothing out market volatility over time.

SIP Returns Formula

FV = P × [(1 + r)ⁿ − 1] / r × (1 + r)

FV = future value, P = monthly investment, r = monthly rate (annual ÷ 12 ÷ 100), n = total months.

Historical Returns Reference (India)

Fund Category	10-Year Avg Return
Large Cap Equity	12–14% p.a.
Mid Cap Equity	15–18% p.a.
Debt / Liquid Funds	6–8% p.a.
Hybrid / Balanced	10–12% p.a.

Note: Past returns do not guarantee future performance. Equity SIPs carry market risk.

The 15-15-15 Rule

Invest ₹15,000/month in equity SIPs at 15% p.a. for 15 years → corpus of approximately ₹1 crore. A simple illustration of how consistent, long-term SIPs build significant wealth.

Frequently Asked Questions

Use 10–12% p.a. for large-cap equity funds (conservative to moderate), 12–15% for mid-cap, and 6–7% for debt funds. These are historical averages — actual returns vary. Never assume a guaranteed return for equity funds. For goals beyond 7 years, equity SIPs have historically delivered inflation-beating returns.

Equity SIPs are not recommended for goals under 3 years due to market volatility. For short-term goals, use debt fund SIPs or recurring deposits instead. For medium-term goals (3–5 years), balanced/hybrid funds are a reasonable option.

Yes — most fund houses allow a SIP pause of 1–3 months without penalty. You can also stop (cancel) a SIP anytime. The invested units remain invested and continue to grow — only new investments stop.

When markets fall, your fixed monthly amount buys more units at lower prices. When markets rise, you buy fewer units at higher prices. Over time, this averages your cost of purchase — called rupee cost averaging — reducing the impact of market timing on returns.

No — SIPs in equity mutual funds do not guarantee returns. Returns depend on market performance. However, historically, disciplined equity SIPs held for 10+ years have rarely delivered negative returns. The longer the horizon, the more the volatility smooths out.

Lump-sum invests the entire amount at once — timing matters greatly. SIP invests in regular installments — timing matters less due to rupee cost averaging. For most salaried investors without a large corpus, SIP is the practical and psychologically easier approach.