SIP Calculator
A Systematic Investment Plan (SIP) puts a fixed amount into a mutual fund every month. This calculator shows what those instalments can grow to, how much of it is return, and what the final amount is worth in today's money.
How to use it
- Set your monthly investment, the return you expect each year and how many years you will invest.
- Switch to Step-up SIP to raise the instalment every year, for example with each salary hike.
- Use the Goal tab to find the monthly SIP needed to reach a target amount.
How it is calculated
Maturity = P x [((1 + i)^n - 1) / i] x (1 + i), where P is the monthly instalment, i is the yearly return divided by 12 and n is the number of months. Instalments are assumed to be paid at the start of each month.
Frequently asked questions
How much will a Rs 5,000 monthly SIP become in 10 years?
At an assumed 12% yearly return, Rs 5,000 a month for 10 years (Rs 6 lakh invested) grows to about Rs 11.6 lakh. Real returns vary with the market.
What is a step-up SIP?
A step-up SIP increases the monthly instalment by a fixed percentage every year. Raising a SIP by 10% a year can grow the final corpus far more than the extra amount invested.
Does the result include taxes and fund charges?
No. The figure is before the fund's expense ratio and before tax on gains. Equity gains above Rs 1.25 lakh a year are taxed at 12.5% when you redeem.
Is the expected return guaranteed?
No. Mutual fund returns depend on the market. Try a lower rate as well to see a cautious outcome.