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MonoCalc

SIP Calculator

Finance

Use this SIP Calculator to estimate the future value of your monthly investments.

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Monthly Investment Amount

Enter the amount you plan to invest monthly

Investment Duration (Years)

Enter the number of years you plan to invest

Expected Annual Return Rate (%)

Enter the expected annual return rate in percentage

Investment Summary

Maturity Value
₹0.00
Estimated value after 10 years
Total Investment
₹0.00
Total amount invested over 10 years
Estimated Returns
₹0.00
Total interest earned

Investment Breakdown

Investment Growth Over Time

The chart shows how your investment grows over time. The purple line represents your total portfolio value, blue shows cumulative investments, and green shows the interest earned.

Note: This calculator provides estimates based on the parameters you provide. The advanced options allow for more realistic projections by accounting for expense ratio, initial investments, inflation, and annual top-ups. Actual returns may vary due to market fluctuations, taxes, and other factors. This tool is for informational purposes only and should not be considered financial advice.

About This Tool

💰 SIP Calculator – Plan Your Investment Growth with Precision

Planning for your financial future? A SIP Calculator helps you estimate the future value of your systematic investments, total interest earned, and overall wealth accumulation over time. This powerful tool enables you to make informed decisions about mutual fund investments, retirement planning, and goal-based wealth creation.

This comprehensive guide explains what SIP is, how compound growth works, and how to use our free online SIP calculator with step-up and goal planning to maximize your investment returns.

📘 What Is SIP (Systematic Investment Plan)?

SIP (Systematic Investment Plan) is an investment strategy where you invest a fixed amount regularly (usually monthly) in mutual funds or other investment vehicles. Unlike lump-sum investing, SIP allows you to start small and build wealth gradually through disciplined, periodic contributions.

SIP has become India's most popular investment method because it promotes:

  • Rupee Cost Averaging: Buy more units when prices are low, fewer when high
  • Disciplined Investing: Automated monthly contributions remove emotional decisions
  • Power of Compounding: Reinvested returns generate returns on returns
  • Flexibility: Start with as little as ₹500/month, increase anytime

⚙️ How the SIP Calculator Works

Our advanced SIP calculator uses the future value of annuity formula to compute returns:

FV = P × [((1 + r/12)^(12×t) - 1) / (r/12)] × (1 + r/12)

Where:

  • FV = Future value (corpus at maturity)
  • P = Monthly SIP contribution
  • r = Annual expected return rate (as decimal)
  • t = Investment tenure in years

The calculator also factors in step-up SIP (annual increases), expense ratio (mutual fund fees), and inflation to show real purchasing power.

🎯 Step-Up SIP: Supercharge Your Returns

A step-up SIP (also called top-up SIP) allows you to increase your monthly contribution by a fixed percentage annually. For example, starting with ₹5,000/month with a 10% annual step-up:

  • Year 1: ₹5,000/month
  • Year 2: ₹5,500/month (10% increase)
  • Year 3: ₹6,050/month (10% on previous year)
  • Year 5: ₹7,321/month

This strategy helps counter salary inflation and can dramatically increase your final corpus. A ₹5,000 SIP at 12% for 20 years grows to ₹49.95L, but with 10% annual step-up, it reaches ₹1.03 Cr—more than double!

💡 Practical Uses of SIP Planning

  • Retirement Planning: Build a ₹2-5 crore corpus over 25-30 years
  • Children's Education: Plan for college fees 15-18 years ahead
  • Home Down Payment: Save for property purchase in 5-7 years
  • Goal Comparison: Evaluate multiple scenarios side-by-side
  • Emergency Fund: Build 6-12 months of expenses in debt SIPs

🌟 Real-World SIP Examples

Example 1: Young Professional (Age 25)

  • Monthly SIP: ₹10,000
  • Annual Step-up: 10%
  • Duration: 30 years (till age 55)
  • Expected Return: 12% p.a.
  • Result: ₹6.47 Cr (₹1.07 Cr invested, ₹5.40 Cr gains)

Example 2: Mid-Career Planning (Age 35)

  • Monthly SIP: ₹25,000
  • No Step-up
  • Duration: 20 years
  • Expected Return: 11%
  • Expense Ratio: 1.5%
  • Result: ₹1.88 Cr (₹60L invested, ₹1.28 Cr gains)

⚖️ SIP vs Lump Sum: Which Is Better?

While lump-sum investing can yield higher returns in consistently rising markets, SIP offers:

  • Lower risk through market volatility averaging
  • Easier to start without large initial capital
  • Disciplined approach suited for salaried individuals
  • Tax benefits in ELSS funds (Section 80C)

Most financial advisors recommend SIP for retail investors, especially those new to equity markets.

⚠️ Important Considerations

  • Returns are estimates: Actual market returns fluctuate; equity SIPs can vary between -5% to +25% in any year
  • Expense ratio matters: A 1% fee difference can reduce your corpus by 15-20% over 25 years
  • Exit load & lock-in: ELSS has 3-year lock-in; others may charge 1% exit within 1 year
  • Tax implications: LTCG above ₹1.25L taxed at 12.5% (as of 2024)
  • Review regularly: Reassess fund performance annually

🔄 How to Use This SIP Calculator

  1. Select your currency (₹ INR, $ USD, € EUR)
  2. Enter your monthly SIP amount (e.g., ₹5,000)
  3. Set investment duration in years (e.g., 15 years)
  4. Choose expected annual return (12% for equity, 7% for debt)
  5. Expand Advanced Options for step-up, expense ratio, and inflation
  6. View year-by-year breakdown and charts showing growth trajectory
  7. Export results as CSV for record-keeping

📊 Understanding Your Results

The calculator provides:

  • Maturity Value: Total corpus including principal + returns
  • Total Invested: Sum of all monthly contributions
  • Estimated Gains: Returns generated by compounding
  • Real Value: Inflation-adjusted purchasing power
  • Year-wise Breakdown: Track growth milestones (5L, 10L, 1Cr)

Disclaimer: This calculator provides estimates for planning purposes only. Actual returns depend on market performance, fund selection, and economic conditions. Consult a SEBI-registered financial advisor before making investment decisions.

Frequently Asked Questions

Is the SIP Calculator free?

Yes, SIP Calculator is totally free :)

Can I use the SIP Calculator offline?

Yes, you can install the webapp as PWA.

Is it safe to use SIP Calculator?

Yes, any data related to SIP Calculator only stored in your browser (if storage required). You can simply clear browser cache to clear all the stored data. We do not store any data on server.

What is a SIP and how does it work?

A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly (usually monthly) in mutual funds. Instead of investing a lump sum, you invest small amounts periodically, which averages out the purchase cost over time (rupee cost averaging) and harnesses the power of compounding to build wealth.

How is SIP return calculated?

SIP returns are calculated using the future value formula: FV = P × [((1 + r/12)^(12×t) - 1) / (r/12)] × (1 + r/12), where P is the monthly investment, r is the annual return rate (as a decimal), and t is the time period in years. The calculator compounds returns monthly and accounts for step-up increases and expense ratios.

What is a step-up SIP?

A step-up SIP allows you to increase your SIP contribution by a fixed percentage annually. For example, if you start with ₹5,000/month with a 10% annual step-up, your contribution increases to ₹5,500 in year 2, ₹6,050 in year 3, and so on. This helps counter inflation and accelerates wealth creation significantly.

How does expense ratio affect SIP returns?

Expense ratio is the annual fee charged by mutual funds for managing your investment, typically 0.5%-2.5%. It reduces your effective returns. For example, if a fund delivers 12% returns with 1% expense ratio, your net return is 11%. Over 20 years, even a 1% difference can reduce your corpus by lakhs due to compounding.

What is the ideal SIP return rate to assume?

For equity mutual funds, historical data suggests 12-15% average annual returns over 15+ years. For debt funds, expect 6-8%. However, past performance doesn't guarantee future returns. Conservative investors should use 10-12% for equity and 6-7% for debt when planning long-term goals.

How can I calculate the required SIP for my goal?

Use the Goal Mode in this calculator. Enter your target corpus (e.g., ₹1 crore for retirement), expected return rate (e.g., 12%), and time horizon (e.g., 20 years). The calculator will compute the required monthly SIP amount. You can also factor in step-up increases to reduce the initial contribution needed.