How is SIP return calculated? What is the SIP formula?

SIP return formula: M = P × [{(1 + r)^n – 1} / r] × (1 + r), where M = maturity amount, P = monthly SIP amount, r = monthly rate of return (annual rate ÷ 12 ÷ 100), n = number of months. Example: ₹5,000/month for 10 years at 12% annual return → M = ₹11,61,695. Total invested = ₹6,00,000. Wealth gained = ₹5,61,695.

Step-Up SIP (also called Top-Up SIP) is a variant where you increase your SIP amount by a fixed percentage every year. For example, starting with ₹5,000/month and stepping up 10% annually means investing ₹5,500 in year 2, ₹6,050 in year 3, and so on. This aligns your investments with income growth and significantly boosts the final corpus compared to a flat SIP.

What is a good expected return rate for SIP in India?

Historical SIP return rates in India: Large-cap equity funds: 10–12% per annum over 10+ years. Mid-cap funds: 14–18% per annum. Small-cap funds: 15–22% per annum (higher risk). Balanced/hybrid funds: 9–12% per annum. Index funds (Nifty 50): ~12% CAGR over last 20 years. For conservative estimates, use 10–12%. For aggressive portfolios, 14–16% is reasonable.

What is the difference between SIP and lump sum investment?

SIP vs Lump Sum: SIP invests a fixed amount every month regardless of market conditions — ideal for salaried individuals with regular income. Lump sum invests the entire amount at once — best when markets are at a low point. SIP reduces timing risk through rupee cost averaging. Lump sum can give higher returns if invested at market lows. For most retail investors in India, SIP is recommended due to lower risk and disciplined approach.

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SIP Calculator India — Monthly SIP, Lump Sum & Step-Up SIP Returns

Calculate mutual fund SIP returns, lump sum investment growth, and step-up SIP corpus. See year-by-year wealth growth chart instantly.

SIP Formula: M = P × [{(1 + r)^n – 1} / r] × (1 + r) — where P = monthly amount, r = monthly rate (annual ÷ 12 ÷ 100), n = months. Example: ₹5,000/month × 10 years × 12% return = ₹11.62 lakh (invested ₹6L, gained ₹5.62L).

Monthly SIP Calculator

Monthly SIP Amount ₹5,000

₹500₹2 Lakh

Lump Sum Investment ₹1,00,000

₹10K₹1 Cr

Annual Step-Up % 10%

1%50%

Expected Annual Return 12%

1%30%

Investment Duration 10 Years

1 Yr40 Yrs

Invested

₹6.00 L

Returns

₹5.62 L

Total Value

₹11.62 L

📈 Year-by-Year Growth

📊 SIP Returns Table — ₹5,000/month at Different Durations & Rates

How much will ₹5,000 monthly SIP grow to? Quick reference for 10%, 12%, and 15% annual returns.

Duration	Invested	@ 10% p.a.	@ 12% p.a.	@ 15% p.a.
5 Years	₹3.00 L	₹3.87 L	₹4.08 L	₹4.45 L
10 Years	₹6.00 L	₹10.33 L	₹11.62 L	₹13.94 L
15 Years	₹9.00 L	₹20.73 L	₹25.23 L	₹33.40 L
20 Years	₹12.00 L	₹38.28 L	₹49.96 L	₹75.79 L
25 Years	₹15.00 L	₹66.64 L	₹94.88 L	₹1.65 Cr
30 Years	₹18.00 L	₹1.13 Cr	₹1.76 Cr	₹3.50 Cr

* Estimated values. Actual returns depend on fund performance. Mutual fund investments are subject to market risks.

📖 How to Use This SIP Calculator

Choose Calculator TypeMonthly SIP for regular fixed investments, Lump Sum for one-time investment, or Step-Up SIP if you plan to increase your investment amount each year.
Set Investment AmountDrag the slider to your monthly SIP amount (₹500 to ₹2 lakh) or lump sum amount. For Step-Up SIP, also set the annual increment percentage.
Set Expected Return & DurationUse 10–12% for conservative equity estimates, 14–16% for aggressive. Set your investment horizon — longer = much higher returns due to compounding.
Read Results & ChartSee total invested, estimated returns, final corpus value, and a year-by-year chart showing invested amount vs total value over time.

✅ Why Use This SIP Calculator

📅

3 Calculator Modes

Monthly SIP, Lump Sum, and Step-Up SIP — all in one tool.

📈

Visual Growth Chart

Year-by-year bar chart shows exactly how compounding works.

🎯

Goal Planning

Work backwards — set a target and find out how much to invest monthly.

📶

Step-Up SIP

See how increasing your SIP by 10% annually can double your final corpus.

⚡

Instant Results

Updates live as you move sliders — no button click needed.

🔒

100% Private

No data stored. Runs entirely in your browser.

❓ SIP Calculator — Frequently Asked Questions

What is SIP and how does it work?

SIP (Systematic Investment Plan) is a method of investing a fixed amount in a mutual fund every month. A fixed amount is auto-debited from your bank account and invested in your chosen mutual fund scheme. You get units at the prevailing NAV. When markets are low you get more units; when high, fewer — this is called rupee cost averaging. Over time, compounding grows your wealth significantly.

If I invest ₹5,000/month in SIP for 10 years, how much will I get?

Investing ₹5,000/month via SIP for 10 years at 12% expected return: Total invested = ₹6,00,000. Estimated maturity value = ₹11,61,695. Wealth gained = ₹5,61,695. At 15% return, maturity value = ₹13,93,928. These are estimates — actual returns depend on fund performance.

What is Step-Up SIP and is it better than regular SIP?

Step-Up SIP (Top-Up SIP) increases your monthly investment by a fixed % every year. Starting ₹5,000/month with 10% annual step-up for 10 years at 12% return gives approx ₹14.5 lakh vs ₹11.6 lakh for flat SIP — a 25% higher corpus. It is better if your income grows annually as it aligns investment with earning growth.

What is a realistic SIP return rate in India?

Realistic SIP return rates in India based on 10-year historical data: Large-cap equity funds: 10–12% CAGR. Mid-cap funds: 13–17% CAGR. Small-cap funds: 15–20% CAGR. Index funds (Nifty 50): ~12% CAGR over 20 years. Balanced/hybrid funds: 9–12% CAGR. Use 10–12% for conservative planning and 14–15% for aggressive.

Is SIP better than FD (Fixed Deposit) in India?

SIP in equity mutual funds historically gives 10–15% returns vs FD returns of 6–7.5%. For a 10-year horizon: ₹5,000/month SIP at 12% = ₹11.6L corpus. Same ₹5,000/month in FD at 7% = ₹8.7L corpus. SIP is better for long-term wealth creation (5+ years) but carries market risk. FD is better for short-term, guaranteed returns.

How to start a SIP in India?

To start a SIP in India: 1) Complete KYC (Aadhaar + PAN). 2) Choose a mutual fund — direct plan has lower expense ratio. 3) Register on AMC website, CAMS, KFintech, or apps like Zerodha Coin, Groww, Kuvera, or Paytm Money. 4) Set up auto-debit mandate. 5) Select SIP date and amount. Minimum SIP amount starts from ₹100/month in some funds. Most SIPs can be started in 15 minutes.

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