SIP Calculator
Use our SIP Calculator to estimate your future mutual fund returns instantly. Project your long-term wealth growth over 5 to 40 years based on your monthly investments.
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What is a SIP?
A Systematic Investment Plan, or SIP, is a method of investing in mutual funds where you contribute a fixed amount at regular intervals, typically every month. Instead of putting in a large lumpsum at one go, SIPs let you spread your investment over time.
Each month, a pre-decided amount is auto-debited from your bank account and used to buy units of your chosen mutual fund. Over time, this builds a disciplined investing habit while also smoothing out the impact of market ups and downs.
SIPs work well for long-term wealth creation because of two core principles. The first is rupee cost averaging, where you end up buying more units when prices are low and fewer when prices are high, which averages out your overall purchase cost. The second is compounding, where the returns generated on your investments themselves start generating returns, leading to faster wealth accumulation the longer you stay invested.
SIPs are flexible. You can start one, pause it, increase the amount, or stop it at any time. This makes them suitable for salaried investors, first-time investors, and anyone with a long-term financial goal like retirement, a home down payment, or a child’s education.
How to Use This SIP Calculator
A SIP calculator estimates the future value of your SIP using a few inputs, but the inputs are not equally important. Here's how to use this one and what each toggle changes about the projected corpus.
Pick Your Investment Frequency
Your SIP is calculated on a monthly. This aligns with how most AMC (Asset Management Company) mandates are set up in India, ensuring your projections accurately reflect a standard monthly investment cycle.
Set the SIP Amount
Enter the contribution per period in rupees. The minimum SIP allowed by most Indian mutual funds is ₹500 a month. Use the slider for quick scenario flips between ₹5,000, ₹10,000, ₹25,000 and higher amounts. This is the input most people optimise first, but tenure matters more.
Choose the Investment Tenure
Slide the tenure between 1 year and 40 years. The calculator handles long horizons cleanly because compounding is the entire game on a SIP. A ₹10,000 monthly SIP at 12% becomes roughly ₹99.9 lakh in 20 years, ₹3.53 crore in 30 years and ₹11.88 crore in 40 years. The non-linear jump between decades is the single most important thing this SIP investment calculator surfaces.
Set Expected Annual Return
Default 12% reflects long-term Indian equity (Nifty 50 TRI). Use 8% for debt-heavy portfolios, 10–11% for balanced multi-asset allocations, and 13–14% only if you're comfortable defending mid- or smallcap exposure for the full tenure. Small return changes compound into large corpus changes over decades.
Read the Result Strip
Three numbers always appear: Total Invested (your contributions added up, no growth), Estimated Returns (the gain on top), and Total Value (the projected corpus). The Portfolio Value vs Invested chart shows when growth overtakes contributions, typically around year 8–10 for a 12% SIP. The Cumulative Profit chart isolates just the gain.
SIP Return Calculation Formula
The standard SIP calculation formula is the future value of an annuity due:
FV = P × [((1 + r)^n − 1) ÷ r] × (1 + r)
Where:
- FV = Future value of the investment
- P = Periodic contribution (your SIP amount)
- r = Periodic rate of return (annual rate ÷ 12 for a monthly SIP)
- n = Total number of installments
- The (1 + r) multiplier at the end accounts for contributions invested at the start of each period rather than the end
Plug in P = 10,000, r = 0.01, n = 240 (for ₹10,000 monthly at 12% over 20 years): FV = 10,000 × [(1.01^240 − 1) ÷ 0.01] × 1.01 ≈ ₹99.9 lakh. That matches the headline corpus exactly. Every SIP return calculator on the internet runs some version of this same equation. The differences come from edge cases: whether contributions are start- or end-of-period, how monthly returns are derived from annual returns, and rounding.
The compounding behind the formula: Every contribution earns return on its principal AND on the returns earned in earlier months. This is the real source of long-term wealth in a SIP, and it's why early years feel disappointing while late years feel exponential. On a ₹10,000 monthly SIP at 12%, returns earned over 20 years (₹75.9 lakh) are 3.16× the principal. Run the same SIP for 30 years and the ratio explodes to 8.8× (₹3.53 crore corpus on ₹36 lakh invested). At 40 years, the ratio is 23.7×.
This is why a SIP compounding calculator looks unimpressive in years 1–8. The corpus barely diverges from cumulative contributions. Around year 10–12, growth overtakes contributions and the gap widens visibly. By year 20+ the gap is enormous.
Note on tracking realised returns. How to calculate SIP returns on a finished investment is a different exercise. That's an XIRR calculation, which uses irregular contribution dates and the actual NAVs you transacted at. A SIP CAGR calculator is a simplification that assumes a single compounded growth rate. For projection, use the future-value formula above. For tracking realised returns on a live SIP, use XIRR.
The Math of a 20-Year SIP: Numbers You Can Verify in This Tool
All projections below use the standard SIP future value formula. Equity assumption 12% p.a. unless stated. Each number is reproducible by entering the listed inputs into the calculator above.
| Amount | What It Represents |
| ₹99.9 lakh | ₹10,000 monthly SIP over 20 years at 12%. Total invested: ₹24 lakh. Returns earned: ₹75.9 lakh. The headline scenario most calculators stop at. |
| ₹3.53 crore | ₹10,000 monthly sip over 30 years. The 10-year extension lifts the corpus 3.5× for ₹12 lakh of extra contribution. What a SIP maturity calculator shows when compounding finishes its job. |
| ₹11.88 crore | ₹10,000 monthly sip over 40 years. Total invested: ₹48 lakh. Returns earned: ₹11.4 crore. 24× the contribution. The number a 25-year-old should run before deciding ₹10,000 a month is too small. |
| ₹90.6 lakh | Post-tax corpus of a ₹10,000 monthly SIP at 12% over 20 years, after 12.5% LTCG on gains above the ₹1.25 lakh annual exemption. ₹9.3 lakh of tax drag on the ₹99.9 lakh nominal corpus |
| ₹30 lakh | Corpus difference between an 11% and 12% expected return on a ₹10,000 monthly SIP over 25 years. The most underrated input. |
| Year 8-10 | When projected gains roughly equal cumulative contributions on a 12% equity SIP. Growth becomes visually obvious only after this point. |
| ₹500 | Minimum monthly SIP allowed by most Indian mutual funds. Calculator accepts inputs from ₹100 for projection purposes; real-world execution starts at ₹500. |
What Are the Benefits of Investing Through SIP?
A SIP helps you stay invested through multiple market phases while keeping your contribution aligned to your cash flow and goal timeline. Over long horizons, that consistency can matter as much as the return assumption you plug into any calculator. The other benefits are:
Builds Investing Discipline
SIPs turn investing into a repeatable habit. You commit to a schedule, so investing becomes less dependent on moods, headlines, or perfect timing. Over time, consistency often matters more than cleverness.
Supports Rupee Cost Averaging In Volatile Markets
With a fixed monthly amount, you buy more units when NAVs are lower and fewer when NAVs are higher. Over time, this can reduce the average cost of your purchases across market swings, especially when you keep the SIP running through downcycles.
Makes Long-Term Compounding Easier To Stick With
Compounding needs time and consistency. SIPs support this by keeping contributions regular, so the portfolio has more chances to grow through different market cycles.
Helps Goal-Based Planning
A calculator helps you connect a monthly number to a future outcome. That makes it easier to plan around goals like education, a home down payment, or retirement without overcomplicating the math.
Gives You Room To Scale As Income Grows
Many investors begin with a manageable SIP and increase it later. That approach often fits real life better than starting big and stopping early. If you want the best SIP planner, it is usually the plan you can maintain through salary jumps, unexpected expenses, and market noise.
SIP vs Lump Sum Investment: Which Is Better?
A lump sum SIP calculator answers a question every investor with a windfall faces: invest the whole amount today, or stagger it through a SIP? The math heavily favours lumpsum when you have the money in hand. ₹24 lakh deployed today at 12% over 20 years projects to ₹2.32 crore. The same ₹24 lakh contributed as a ₹10,000 monthly SIP over 20 years projects to roughly ₹1 crore, less than half. Every rupee in the lumpsum scenario compounds for 20 full years. In the SIP scenario, the average rupee compounds for only 10.
So why doesn't everyone pick lumpsum? Because the calculator assumes a smooth 12% return. Real markets deliver that 12% with sharp drawdowns embedded inside. A lumpsum invested in March 2008 sat through a 50% Nifty drawdown by October 2008, psychologically punishing even though the eventual recovery was strong. A one time SIP calculator output is mathematically optimal but behaviourally fragile.
The hybrid pattern most investors actually use: deploy 50–70% of the windfall as lumpsum into broad-market funds, run the remaining 30–50% as a 6–12 month STP (Systematic Transfer Plan) into the same funds. This compromises a small amount of expected return for substantial behavioural protection.
A detailed comparison of SIP vs lumpsum investing helps investors understand how market timing and discipline affect returns. Use the calculator's lumpsum mode and SIP mode together to model both legs.
Types of SIP Options in Mutual Funds
SIPs are not one rigid format. Beyond the standard monthly SIP, mutual funds offer multiple SIP structures so investors can match contributions to how income actually shows up. The best SIP type is the one that fits your cash flow and matches your goal horizon.
Regular Fixed SIP
You invest the same amount at a chosen frequency, usually monthly. This is the default format most people start with because it is simple and easy to track. ₹10,000 monthly at 12% over 20 years projects to ₹99.9 lakh.
Flexible SIP
You can vary the contribution amount across months. It suits irregular income patterns (consultants, business owners, bonus-heavy salaries) but it needs discipline because flexibility can turn into frequent skipping without guardrails. Plan a floor amount that's non-negotiable, and treat anything above that as opportunistic.
Lumpsum + SIP Hybrid
Combine a one-time deployment with a recurring SIP. ₹24 lakh lumpsum + ₹10,000 monthly SIP, both running 20 years at 12%, projects to ₹3.32 crore total. A SIP plus lumpsum calculator visualises both legs in a unified projection, useful when you have cash to deploy now AND want a parallel SIP.
Asset Class Variants (Gold, ETF, Index Fund)
The future value formula is identical across asset classes. Only the expected return assumption changes. A gold SIP calculator uses 8–10% expected return based on the long-run domestic INR gold CAGR. A Nifty 50 SIP calculator at 12% reflects long-run TRI returns. An index fund SIP calculator follows the same number, minus the fund's expense ratio (typically 0.10–0.30%). An ETF SIP calculator works the same way, with bid-ask spreads on illiquid sector ETFs adding 0.50%+ drag over time.
SIP + SWP Combo
A SIP and SWP calculator handles both phases of the wealth lifecycle: SIP during earning years builds the corpus, SWP (Systematic Withdrawal Plan) during retirement converts that corpus into monthly cash flow. ₹15,000 monthly SIP for 25 years at 12% projects to ₹2.85 crore. Switch into SWP mode at year 26: withdraw ₹1.5 lakh a month with the residual continuing to grow at 8%, and the corpus lasts another 30+ years before depletion.
SIP Tax Calculator
A SIP tax calculator deducts the LTCG tax that hits when you redeem an equity mutual fund SIP after holding it longer than 12 months. Post the July 2024 Budget, equity LTCG is 12.5% (raised from 10%) on gains above ₹1.25 lakh per financial year. For a debt fund SIP after April 2023, gains are taxed at your slab rate regardless of holding period. The indexation benefit was removed.
Worked example: ₹10,000 monthly equity SIP for 20 years at 12% builds to ₹99.9 lakh, with ₹75.9 lakh of gains. Apply 12.5% LTCG (above the ₹1.25 lakh annual exemption, applied per redemption year): post-tax corpus drops by roughly ₹9.3 lakh to about ₹90.6 lakh. That's the real take-home.
Layer in a SIP calculator with expense ratio: A 1.5% TER actively-managed fund running for 20 years effectively reduces gross return by ~1.5 percentage points compounded, meaningful drag. Switch to a 0.20% index fund and most of that drag disappears. The calculator handles the projection. The cost and tax decisions are where SEBI RIA-led portfolio construction creates real edge.
SIP Investment Mistakes You Should Avoid
Most SIP mistakes are not about SIPs themselves. They come from unrealistic assumptions, overreaction to short-term market movement, or building a structure that is hard to maintain. A calculator is useful, but from an RIA perspective, it is still only a projection tool. What matters is whether the plan is realistic, trackable, and aligned to your time horizon and risk comfort.
Treating the Expected Return Like a Guaranteed Outcome
A SIP calculator uses the return you enter. Pick 14% to make the corpus look impressive and the plan fails in any decade where Indian equity delivers 9–10%, which has happened. Broad-market real returns over 2010–2020 were notably below the long-run average. A better approach is to test multiple return scenarios and keep the plan conservative enough to stay invested.
Ignoring Inflation in Long-Horizon Projections
A ₹99.9 lakh corpus 20 years from today is roughly ₹31 lakh in today's purchasing power at 6% inflation. Plans built on nominal numbers work on paper and fail in real life. Always sense-check long-horizon goal corpuses against today's prices for the same milestone (retirement annual spend, child's education cost, house down-payment) before locking the SIP amount.
Stopping in the First 3–5 Years
Compounding becomes visible around year 8–10 of a typical equity SIP at 12%, when projected gains roughly equal cumulative contributions. The acceleration is sharp from year 12 onwards. Most SIP investors who quit do so in the first 3–5 years, before the compounding curve has had time to bend.
Confusing CAGR with XIRR on a Live SIP
A SIP calculator projects future value using a single compounded growth rate. That's CAGR. But a live SIP has irregular contribution dates and different NAVs for each installment, which means the realised return is technically an XIRR, not a CAGR. Investors who check CAGR on a 3-year-old SIP and panic at the gap between projected and realised returns are comparing the wrong two numbers. Use XIRR for live tracking. Use this calculator for forward projection.
Skipping the Tax and Expense Ratio Math
Equity LTCG (12.5% above the ₹1.25 lakh exemption) and fund TER quietly clip 15–25% off your projected nominal corpus over 20 years. A SIP plan that ignores both overstates real take-home by lakhs. AMFI confirms NAV is disclosed after deducting expenses, so cost matters every single year you stay invested.
Built by SEBI-Registered Advisors
Novelty Wealth is a SEBI-registered Investment Advisor (RIA No. INA000019415) and BASL member (BASL2191). Every projection on this calculator, and every assumption in the worked examples above, uses the same future-value methodology Novelty Wealth's SEBI RIA advisors apply when building real allocation plans for affluent Indian investors.
The expected return anchors used in the Stats and Steps sections (12% equity, 8% debt, 10% balanced, 6% inflation reference) reflect long-run Indian-market base cases: Nifty 50 TRI, broad debt indices, and CPI inflation respectively. These are planning anchors, not guarantees. A SEBI-registered investment advisor builds your actual allocation around your goal horizon, current portfolio mix, and risk profile, not a generic template.
| Field | Detail |
| Principal Officer | Naveen Changoiwala |
| SEBI RIA Registration No. | INA000019415 |
| BASL Membership No. | BASL2191 |
| CIN | U66190KA2024PTC188214 |
| Type of Registration | Non-Individual |
A Calculator Gives You a Number, An Advisor Gives You a Plan.
You've seen what a 20 or 30-year SIP can build. Now build it inside a portfolio that's been allocation-checked, expense-optimised and goal-aligned by SEBI-registered advisors. Get your full portfolio review inside the app.
Frequently Asked Questions
No. An SIP calculator is a tool that gives a projection using your inputs. In real mutual funds, expenses are reflected through the scheme’s expense ratio, and NAV is disclosed after deducting expenses.
Different calculators can use different assumptions: when the installment is considered invested (start of month vs end), how monthly returns are derived from annual returns, and rounding. Even small differences shift the final corpus.
Yes, for planning. The SIP calculator can help you estimate what a monthly ELSS SIP might grow into. It does not model lock-in constraints or tax impact, so treat the output as indicative.
Yes. Novelty Wealth’s SIP calculator is free to use and built for planning and comparisons. From an RIA lens, the point is clarity before action, not pushing a product.
Yes. Many investors run separate SIPs for separate goals. The practical watch-out is complexity. Keep each SIP mapped to a goal, so reviews stay simple.
If the money is available today and you can tolerate timing risk, a lump sum can work. If your investing comes from a monthly cash flow or you prefer spreading entry across time, SIP often fits better. Use the calculator to compare scenarios, then choose the method you can stick with.
A periodic review is usually more useful than frequent checking. Many investors review every 6 to 12 months, or earlier if a goal, income, or risk comfort changes.
An SIP calculator uses the expected returns you enter. It does not model market risk scenarios. Actual mutual fund returns can vary, so treat the result as a projection.