Last updated: 2026-10-21
What is a SIP?
A SIP (Systematic Investment Plan) lets you invest a fixed amount in a mutual fund every month, from as little as ₹100–500. You buy more units when prices are low and fewer when they're high, so you don't have to time the market. Over many years, compounding does the heavy lifting.
How the SIP calculator works
FV = P × [(1 + i)n − 1] ÷ i × (1 + i)
- P = monthly SIP amount
- i = monthly return (yearly return ÷ 12 ÷ 100)
- n = number of monthly instalments
Example: ₹10,000 a month for 10 years at 12% gives about ₹23.2 lakh. You invest ₹12 lakh and gain about ₹11.2 lakh.
With a step-up, your SIP rises by a fixed percentage every year. The calculator works this out month by month.
Why a step-up SIP makes a big difference
₹10,000 a month for 20 years at 12% grows to about ₹1 crore. Raise it by just 10% every year and it grows to about ₹2 crore. Try both in the calculator above.
How much SIP do I need for ₹1 crore?
| Time | Monthly SIP at 12% |
|---|---|
| 10 years | about ₹43,000 |
| 15 years | about ₹19,800 |
| 20 years | about ₹10,000 |
| 25 years | about ₹5,300 |
Starting early matters more than the amount. Enter your own goal in the goal planner above.
Frequently asked questions
Are SIP returns guaranteed?
No. Mutual fund returns depend on the market and can be negative in some years. The calculator assumes a steady return so you can plan, but real returns go up and down.
What return should I assume?
For equity funds over 10+ years, 10–12% is a reasonable planning figure. For debt funds, 6–8%. Use a lower number if you want a cautious estimate.
How are SIP gains taxed?
For equity funds, gains on units held over 12 months are long-term capital gains: the first ₹1.25 lakh of gains a year is tax-free, and the rest is taxed at 12.5%. Gains on units sold within 12 months are taxed at 20%. Each SIP instalment counts separately for the 12 months.
SIP or lumpsum: which is better?
If you have a large amount ready, lumpsum can earn more when markets rise steadily. SIP spreads your risk and suits monthly salaries. Many people do both.
Can I stop or change my SIP?
Yes. Most SIPs can be paused, changed or stopped anytime without a penalty, though some funds charge an exit load if you sell units within a year.
Compare with PPF (7.1%, tax-free) or a bank FD.