SIP Calculator
See exactly what your monthly investment will become — with inflation-adjusted real returns.
Year-by-Year Corpus Growth
The purple bars show your returns. The grey bars show money you put in. Notice how gains overtake invested amount after about Year 9.
What ₹10,000/month SIP Becomes
At different return rates and tenures — so you can set realistic targets.
| TENURE | 8% p.a. | 10% p.a. | 12% p.a. ★ | 15% p.a. |
|---|---|---|---|---|
| 5 years | ₹7.40 L | ₹7.81 L | ₹8.25 L | ₹8.97 L |
| 10 years | ₹18.42 L | ₹20.66 L | ₹23.23 L | ₹27.87 L |
| 15 years | ₹34.83 L | ₹41.79 L | ₹50.46 L | ₹67.69 L |
| 20 years | ₹59.29 L | ₹76.57 L | ₹99.91 L | ₹1.52 Cr |
| 25 years | ₹95.74 L | ₹1.34 Cr | ₹1.90 Cr | ₹3.28 Cr |
| 30 years | ₹1.50 Cr | ₹2.28 Cr | ₹3.53 Cr | ₹7.01 Cr |
★ 12% p.a. is the long-run average for diversified equity mutual funds in India. Past returns do not guarantee future performance.
The Numbers Your AMC Won't Show You
Fund fact sheets advertise CAGR — but your real return is lower. A fund with 15% CAGR and 1.5% expense ratio delivers 13.5% to you. At ₹10,000/month for 20 years, that 1.5% difference costs you approximately ₹28 L in final corpus.
Post-tax matters too. Equity LTCG above ₹1.25L/year is taxed at 12.5% (July 2024 budget). On a large corpus liquidation, your effective tax can be significant. Plan for it.
And inflation: at 6% inflation, ₹1 Cr in 20 years has the purchasing power of roughly ₹31L today. Use the inflation toggle above to see what your corpus is really worth.
How the SIP Math Works
SIP returns are calculated using the future value of an annuity formula. Each monthly instalment earns compound interest from its investment date until the end. The first instalment earns returns for all 15 years; the last instalment earns only 1 month.
This is why time is the most powerful lever. Starting a ₹5,000/month SIP at age 25 instead of 35 — same 10 years of extra investment — nearly triples the corpus at age 60. The early instalments have decades to compound.
Rupee cost averaging means you buy more units when NAV is low and fewer when it is high. Over a market cycle, this reduces your average purchase price versus a lumpsum invested at a single point. It does not guarantee better returns — but it reduces the variance and the anxiety of market timing.
Direct Plan vs Regular Plan: The 1% That Costs ₹12L
Regular plans pay 0.5-1% annual commission to your distributor. This reduces your effective return by the same amount. On ₹10,000/month SIP at 12% for 20 years: the corpus is ₹99.9L. At 11% (regular plan, 1% commission): ₹85.5L. Difference: ₹14.4L — just from paying commission.
Invest in direct plans via platforms like Zerodha Coin, Groww, or MFCentral. It is the same fund, same fund manager, just without the distributor cut.
Frequently Asked Questions
What is SIP and how does it work?+
SIP (Systematic Investment Plan) is a method of investing a fixed amount every month into a mutual fund. Each month, your money buys units at the prevailing NAV. Over time, you accumulate units — buying more when NAV is low, fewer when NAV is high. This averaging effect (called rupee cost averaging) reduces the impact of market volatility.
What rate of return should I use for SIP calculations?+
Equity mutual funds have historically delivered 10-15% CAGR over 10+ year periods in India. For conservative planning, use 10-11%. For aggressive funds (small cap, mid cap), some use 14-15%. Debt funds typically return 6-8%. Always use post-expense-ratio returns — a fund with 15% gross return and 1.5% expense ratio gives you only 13.5%.
How is SIP return different from a lumpsum return?+
Lumpsum computes using simple compound interest since all the money is invested from day one. SIP calculates differently because each instalment earns returns only from its investment date. A ₹10,000/month SIP at 12% for 15 years gives ₹1 Cr corpus, while ₹18L lumpsum at 12% for 15 years gives ₹98L. Same invested amount, roughly similar outcome — but SIP spreads risk over time.
What is the effect of inflation on SIP returns?+
If inflation is 6% and your fund returns 12%, your real return is only about 5.66%. A ₹1 Cr corpus in 15 years will have the purchasing power of roughly ₹40L in today's money. Use the 'Show inflation-adjusted' toggle above to see real returns. This is why targeting 12-14% returns matters — you need to stay well ahead of inflation.
Should I choose SIP or lumpsum?+
SIP is better for salaried investors who receive monthly income and want to invest regularly. Lumpsum is better when you have a large one-time amount (bonus, inheritance, maturity proceeds) and the market is near a multi-year low. In practice, most people combine both: a base SIP every month, with lumpsum additions when they get windfalls.
Is the SIP return in this calculator before or after tax?+
Before tax. Equity mutual fund gains are taxed as LTCG at 12.5% (above ₹1.25L/year) if held over 12 months (post July 2024 budget). Debt fund gains are taxed at your income slab rate. For post-tax planning, subtract approximately 1-2% from your effective return depending on your income slab and holding period.
How do I choose between direct and regular plan SIPs?+
Direct plans have lower expense ratios (typically 0.5-1% less than regular plans). On a ₹10,000/month SIP at 12% for 20 years: a 1% higher return (direct vs regular) adds approximately ₹12-15L to your final corpus. Use direct plans via SEBI-registered platforms like Zerodha Coin, Groww, or MFCentral if you don't need an advisor.
Related: Mutual Funds Guide · Direct vs Regular Plans · LTCG Tax on Mutual Funds · Smart Swipe Card Tool