Mutual Fund SIP Calculator
Calculate SIP returns and future value for mutual fund investments with step-up option.
About this calculator
A SIP, or systematic investment plan, invests a fixed amount in a mutual fund every month. Because you buy through ups and downs, you do not have to time the market, and compounding works on every instalment. This calculator projects the value of a SIP from the monthly amount, an expected return and the period.
It also has an optional annual step-up. If you raise your SIP by a set percentage each year, as your salary grows, the corpus at the end is much larger. The results show total invested, total gains and the future value. Returns are an assumption, not a guarantee.
How to use it
- Enter the Monthly SIP Amount.
- Enter the Expected Annual Return you assume.
- Enter the Investment Period in years.
- Optionally enter an Annual Step-Up percentage. Leave it at 0 for a flat SIP.
- Press Calculate Returns.
The SIP formula
FV = P × [((1 + i)n − 1) ÷ i] × (1 + i), where P is the monthly amount, i the monthly rate (annual rate ÷ 12) and n the number of months. The extra (1 + i) assumes each instalment is invested at the start of the month. With a step-up, the same calculation is applied year by year with the instalment raised each year.
Worked example
₹5,000 a month at 12% for 10 years
| Total invested | ₹6,00,000 |
| Total gains | ₹5,61,695 |
| Future value | ₹11,61,695 |
With a 10% yearly step-up the same SIP invests ₹9,56,245 and grows to ₹16,87,163, about ₹5.25 lakh more, for a modest increase in effort.
Tips and common mistakes
- Start early. Delaying a SIP by five years can cut the final corpus by a third or more.
- Raise your SIP whenever your income rises. A step-up of 10% is easy to afford because it comes from the raise.
- Do not stop a SIP during a market fall. Falling prices let you buy more units.
- Use a realistic return, such as 10 to 12% for equity funds, and run a pessimistic case at 8%.
- Review once a year and rebalance. Do not chop and change funds often.
Frequently asked questions
How is SIP return calculated?
Each monthly instalment compounds from its own date. The calculator applies the standard future value of an annuity formula with a monthly rate.
What return should I expect?
Diversified equity funds have historically delivered roughly 10 to 13% a year over 10 years or more, with deep short-term falls. Debt funds deliver less.
What is a step-up SIP?
It raises your SIP amount by a fixed percentage every year, so your investing keeps pace with your income.
Is the SIP return guaranteed?
No. Market-linked returns vary. The tool shows an illustration at the rate you enter.
Are SIP gains taxed?
Yes, as capital gains on redemption. Each instalment has its own holding period.
What is the minimum SIP?
Many funds allow SIPs from ₹100 or ₹500 a month.