# SIP Calculator

> SIP maturity = P × ((1 + i)^n − 1) ÷ i × (1 + i), where i is the monthly return and n the number of instalments, so ₹10,000 a month for 10 years at 12% a year grows to about ₹23,23,391 on ₹12 lakh invested. Working backwards, ₹1 crore in 20 years at 12% needs ₹10,009 a month.

- Interactive calculator: https://calculatorswithsteps.com/sip-calculator
- Category: India Finance Calculators
- Last updated: 2026-11-10
- Publisher: Calculators With Steps (calculatorswithsteps.com)

## How to use the SIP calculator

1. **Mode** – *Find maturity value* projects what a monthly SIP grows to. *Find SIP for a goal* works backwards from a target amount to the monthly SIP you need.
2. **Monthly investment** or **target amount** – the amount you plan to invest every month, or the sum you want at the end.
3. **Expected return** – your assumed average annual return. This is a guess about the future, so try a few values.
4. **Time period** – how many years you will keep investing.
5. **Annual step-up** (optional) – the percentage by which you will raise your SIP each year.
6. **Adjust goal for inflation** (goal mode, optional) – enter the target in today's money and the calculator grows it at this rate until your goal year.

The calculator shows the estimated maturity value or the SIP needed, how much you invest and how much comes from returns, plus a chart and a year-by-year table.

## SIP formula

For a fixed monthly SIP with each instalment invested at the start of the month:

**FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i)**

- **P** = monthly SIP amount
- **i** = monthly rate = annual return ÷ 12 ÷ 100
- **n** = number of instalments = years × 12

With a step-up, the instalment changes every 12 months, so the calculator adds up each month's growth one at a time instead of using a single formula.

To find the SIP for a goal, the same formula is turned around: **P = FV × i ÷ [((1 + i)^n − 1) × (1 + i)]**. With a step-up, the maturity value is still proportional to the starting SIP, so the calculator divides the goal by what ₹1 a month with the same step-up would grow to. The answer is rounded up to the next rupee so the plan does not fall short.

### Example

₹5,000 a month for 15 years at 12% a year:

- i = 12 ÷ 12 ÷ 100 = 0.01, and n = 180
- FV = 5,000 × [((1.01)^180 − 1) ÷ 0.01] × 1.01 ≈ **₹25.2 lakh**
- Amount invested = 5,000 × 180 = ₹9 lakh, so estimated returns are about ₹16.2 lakh

## How time and step-ups change the result

| ₹10,000/month at 12% | Invested | Estimated value |
| --- | --- | --- |
| 10 years | ₹12.0 lakh | ₹23.2 lakh |
| 15 years | ₹18.0 lakh | ₹50.5 lakh |
| 20 years | ₹24.0 lakh | ₹99.9 lakh |
| 20 years with 10% yearly step-up | ₹68.7 lakh | ₹1.99 crore |

Doubling the time from 10 to 20 years more than quadruples the corpus. Compounding needs time, which is why starting early matters more than starting big.

## How much SIP do I need for ₹1 crore?

At an assumed 12% a year, with each instalment invested at the start of the month:

| Years to goal | Flat monthly SIP | Total invested | Starting SIP with 10% yearly step-up | Total invested |
| --- | --- | --- | --- | --- |
| 10 years | ₹43,041 | ₹51.65 lakh | ₹29,636 | ₹56.68 lakh |
| 15 years | ₹19,819 | ₹35.67 lakh | ₹11,516 | ₹43.91 lakh |
| 20 years | ₹10,009 | ₹24.02 lakh | ₹5,028 | ₹34.56 lakh |
| 25 years | ₹5,270 | ₹15.81 lakh | ₹2,339 | ₹27.6 lakh |

Giving the goal 20 years instead of 10 cuts the monthly SIP from ₹43,041 to ₹10,009, less than a quarter, and you invest less than half as much in total. A 10% step-up roughly halves the starting SIP for a 20-year goal (₹5,028 instead of ₹10,009), although you put in more overall (₹34.56 lakh against ₹24.02 lakh) because the later instalments are larger.

Remember that ₹1 crore in 20 years will buy far less than ₹1 crore today. At 6% inflation, today's ₹1 crore becomes ₹3,20,71,355 in 20 years, and reaching that at 12% takes ₹32,099 a month, or ₹16,126 a month to start with a 10% yearly step-up.

## SIP vs lump sum

A SIP spreads your purchases over time (rupee cost averaging), which smooths out the effect of market swings and fits a monthly salary. A lump sum invests everything at once. It often does better in a market that rises steadily, but it carries more timing risk. Compare the two with the [lumpsum calculator](https://calculatorswithsteps.com/lumpsum-calculator).

## How much should you invest in a SIP?

Work backwards from the goal. Decide the amount you need and the year you need it, then switch the calculator to *Find SIP for a goal*. Allow for inflation: a goal that costs ₹10 lakh today will cost ₹17,90,848 in 10 years if prices rise 6% a year, and reaching it at 12% takes a SIP of ₹7,708 a month. If the required SIP is more than you can afford now, start with what you can and add a yearly step-up. A common rule of thumb is to invest at least 20% of take-home pay across all your goals, with an emergency fund of three to six months of expenses kept separately in a savings account or liquid fund.

## Tips for SIP investors

- **Match the fund to the goal.** Equity funds suit goals 7 or more years away. For goals within 3 years, debt funds or [fixed deposits](https://calculatorswithsteps.com/fd-calculator) are usually more suitable.
- **Step up with your salary.** Raising your SIP by even 5% to 10% a year makes a large difference over long periods.
- **Stay invested through falls.** Market dips let your SIP buy more units. Stopping during a downturn locks in the worst prices.
- **Watch costs.** Direct plans have lower expense ratios than regular plans, and the gap compounds over decades.
- **Review once a year**, not every week. Rebalance if your asset mix has drifted far from your plan.

Mutual fund investments are subject to market risks. Past performance does not guarantee future returns, and this calculator's figures are illustrations, not promises.

## Frequently asked questions

### What is a SIP?

A Systematic Investment Plan (SIP) is a way of investing a fixed amount in a mutual fund at regular intervals, usually every month. Each instalment buys units at that day's NAV, so you buy more units when prices are low and fewer when prices are high.

### How is SIP return calculated?

The future value of a SIP uses FV = P × [((1 + i)^n − 1) ÷ i] × (1 + i), where P is the monthly amount, i is the expected annual return divided by 12 and n is the number of monthly instalments. For actual past returns on a SIP, mutual funds report XIRR, because each instalment was invested for a different length of time.

### How much will ₹10,000 a month in a SIP grow to in 10 years?

At an assumed 12% annual return, ₹10,000 a month for 10 years (₹12 lakh invested) grows to about ₹23.2 lakh. At 10% it would be about ₹20.7 lakh. Real returns vary and are not guaranteed.

### How much SIP is needed for ₹1 crore?

At an assumed 12% a year, about ₹43,041 a month for 10 years, ₹19,819 for 15 years, ₹10,009 for 20 years or ₹5,270 for 25 years. With a 10% yearly step-up, the starting SIP for a 20-year goal falls to ₹5,028. Switch the calculator to Find SIP for a goal to try other targets.

### What is a step-up SIP?

A step-up or top-up SIP increases your monthly instalment by a fixed percentage or amount every year. Raising a ₹10,000 SIP by 10% a year for 20 years at 12% can build more than twice the corpus of a flat SIP, because the larger instalments compound for longer.

### What return should I assume for a SIP?

There is no guaranteed rate. Many planners use 10% to 12% a year for diversified equity funds over long periods, 7% to 8% for hybrid funds and 6% to 7% for debt funds. Use a conservative figure and recheck your plan every year.

### Are SIP returns taxable?

Yes. For equity mutual funds, gains on units held over 12 months are long-term capital gains, taxed at 12.5% above ₹1.25 lakh a year. Gains on units held 12 months or less are taxed at 20%. Each SIP instalment has its own holding period.

### Can I stop or pause a SIP?

Yes. Most fund houses let you pause, modify or cancel a SIP online without a penalty. Units already bought stay invested. An exit load may apply if you redeem units within the fund's exit-load period, often one year for equity funds.

## Sources

- [SEBI Investor Education – Mutual funds](https://investor.sebi.gov.in/)
- [AMFI – Investor information on mutual funds](https://www.amfiindia.com/investor)

> Disclaimer: results are estimates for information and education, not financial advice. Confirm important decisions with a qualified professional.