SIP Calculator

Future value equals M times ((1 plus i) to the power n minus 1) divided by i, times (1 plus i), where M is the monthly investment, i is the monthly return (annual return divided by 12 divided by 100), and n is the number of months. ₹5,000 invested monthly for 20 years at 12 percent annual return grows to about ₹49.96 lakh, of which only ₹12 lakh is your contribution.

For equity mutual funds in India, long-term returns have historically averaged 10 to 14 percent per year, but any single year can range from minus 30 percent to plus 60 percent. Debt funds typically yield 6 to 8 percent. The calculator lets you plug a single rate, but real-world SIP outcomes depend on market timing and fund choice. Numbers shown are illustrative, not guaranteed.

Lump sum wins if the market goes up steadily after you invest; SIP wins if the market is volatile or falling early on, because you buy more units at lower prices (rupee-cost averaging). For most salaried investors, SIP is also more practical because it matches your cashflow.

A step-up SIP increases your monthly contribution by a fixed percentage each year : typically 5 to 10 percent : to match salary growth. Starting at ₹5,000 with a 10 percent annual step-up over 20 years at 12 percent return grows to roughly ₹86 lakh, compared to ₹50 lakh with a flat SIP. Small increases compound surprisingly hard.

₹1 crore in 20 years is not what ₹1 crore is today. At 6 percent inflation, today's ₹1 crore is worth only about ₹31 lakh in 20-year money. Always check your target both in nominal and real (inflation-adjusted) terms, especially for retirement planning.

Yes. All mutual fund SIPs in India can be paused, stopped, or modified at any time without penalty : they are not contracts like insurance. You can also redeem your accumulated units whenever you need, subject to exit load (typically 1 percent if redeemed within a year) and applicable capital gains tax.