SIP Calculator

A SIP is a method of investing a fixed amount regularly (monthly, quarterly) into a mutual fund. Instead of timing the market with a lump sum, you invest consistently and benefit from rupee cost averaging — buying more units when prices are low and fewer when high.

SIP uses compound interest on each instalment. Formula: M = P × {[(1 + r)^n − 1] / r} × (1 + r), where M = maturity amount, P = monthly investment, r = monthly rate (annual rate ÷ 12), n = number of months. This calculator uses this exact formula.

When you invest a fixed amount each month, you buy more mutual fund units when NAV is low and fewer when NAV is high. Over time, the average cost per unit is lower than the average NAV, which benefits long-term investors — this is rupee cost averaging.

SIP is better for salaried investors who want to invest monthly without worrying about market timing. Lump sum is better if you have a large corpus and believe the market is at a low. For most retail investors, SIP is recommended due to disciplined investing and lower risk.

Historically, large-cap mutual funds in India have delivered 10–12% CAGR over 10+ years. Mid-cap and small-cap can deliver 12–15% but with higher volatility. For conservative estimates, use 10–12%. For aggressive portfolios, 12–15%. Always use realistic rates for long-term planning.

Yes, this is called a Step-Up or Top-Up SIP. You increase your SIP by a fixed percentage (e.g., 10%) each year. Our calculator supports annual step-up. Even a 10% annual increase significantly boosts the corpus — a ₹10,000/month SIP growing at 10% step-up and 12% returns creates nearly double the corpus over 20 years.

XIRR (Extended Internal Rate of Return) is the annualised return for a series of irregular cash flows, like monthly SIP investments and a final redemption. It's the most accurate way to measure SIP returns. Most mutual fund apps show XIRR. A 12% XIRR means your money is growing at 12% per year effectively.

No. SIP returns depend entirely on the mutual fund's performance, which is market-linked. Past returns don't guarantee future results. However, long-term SIPs (10+ years) in diversified equity funds have historically generated positive inflation-beating returns in India.

Most mutual funds allow SIPs starting at ₹100–₹500 per month. Some funds have a minimum of ₹1,000. There is no maximum limit. You can start small and increase as your income grows.

For equity mutual funds: gains from units held less than 1 year are Short-Term Capital Gains (STCG) taxed at 20%. Units held over 1 year attract Long-Term Capital Gains (LTCG) at 12.5% above ₹1.25L per year (post-Union Budget 2024). Debt funds are taxed at your income slab rate regardless of holding period.