SIP Calculator
SIP Calculator — See What Your Monthly Investment Will Actually Become
Last Updated: May 2026 | Reading Time: ~5 minutes By Saroj Yadav | Finance Educator, EasyInvestCalc
Three years ago, my cousin Priya called me worried. She had been saving ₹3,000 every month in a regular savings account for two years — ₹72,000 total. When she finally checked the interest earned, it was just under ₹4,000.
"Is this it?" she asked.
That same evening, I helped her set up her first SIP. Same ₹3,000 a month, but now in a diversified equity mutual fund. Last month she called again — this time to tell me her investment had grown well past ₹1.2 lakh in the same time.
The difference wasn't luck. It was simply picking the right vehicle for long-term money.
If you're here, you're already asking the right question. Use the SIP Calculator above first — enter your monthly amount, expected return rate, and years. See what your number looks like. Then read on. The explanation will land much better once you've seen your own projection.
What Is a SIP, in Plain Language?
A Systematic Investment Plan is not a product. It's a method — investing a fixed amount in mutual funds every month, automatically, on a fixed date.
Think of it like a recurring bank deposit. But instead of earning 6% guaranteed, your money goes into equity markets where the historical long-term average for Indian diversified funds has been between 10% and 14% per annum. The returns aren't guaranteed — but the investment consistency is, because it happens automatically.
You can start a SIP in India with as little as ₹100 a month. There's no lock-in in most equity funds. You can pause, increase, or stop whenever life demands it.
How the Calculator Works — Three Inputs, Three Outputs
The SIP Calculator on this page needs three things from you:
Your monthly investment — the fixed amount you plan to put in each month. This could be ₹1,000 or ₹25,000. The amount matters less than the habit.
Expected annual return rate — your assumption about how much the fund might grow per year. For equity funds over long periods, 10% to 12% is a commonly used conservative estimate. You're not committing to anything — you're just testing a scenario.
Investment duration — how many years you plan to stay invested. This is the single most powerful variable. More than the amount, more than the rate, time is what drives the final number.
From those three inputs, the calculator gives you three outputs: total amount invested by you personally, estimated returns generated on top, and the final maturity value. That third number is where people tend to go quiet for a moment and recalculate.
Why the Final Number Is Always Bigger Than You Expect
This is the compounding effect, and it's not magic — it's just math running in your favour over time.
When returns are reinvested each month, your corpus grows on itself. In the early years this seems modest. But by year ten, a significant chunk of your monthly growth is coming from returns earned on previous returns — not from your fresh contribution. By year fifteen or twenty, this snowball becomes genuinely large.
Here's a concrete example. If you invest ₹5,000 every month for 20 years at 12% annual returns, you personally deposit ₹12,00,000 — twelve lakhs. The calculator will show a final value of approximately ₹49,95,740. That extra ₹38 lakh came entirely from compounding. You didn't work for it. Time did.
This is why starting early matters more than starting big. Someone who begins a ₹3,000 SIP at 24 will typically end up with more than someone who starts a ₹6,000 SIP at 34, even though the second person invested double the monthly amount. The ten extra years of compounding more than compensate for the lower contribution.
Four Practical Ways to Use This Calculator
Plan around a specific goal
Instead of just seeing what happens with a round number, work backwards from what you need. If you want ₹25 lakh for your child's higher education in 15 years, adjust the monthly amount until the maturity value hits that target. This turns vague financial anxiety into a specific, actionable figure.
Test the "five more years" scenario
Run your current plan — say ₹5,000 for 15 years. Then change the duration to 20 years and look at the difference in the final value. Most people are surprised to find that those last five years add more to the corpus than the first seven or eight years combined. That's compounding doing its work in the later stages, and seeing it in rupees makes it real.
SIP vs Lumpsum — Which One Makes More Sense for You?
This comes up constantly, and the honest answer depends on your situation.
A SIP works best when you have a regular monthly income and want to invest a portion of it consistently without worrying about market timing. Because you buy units every month regardless of whether the market is high or low, your average purchase price evens out over time. This concept is called Rupee Cost Averaging, and it's one of the most underrated advantages of SIPs for salaried investors.
A lumpsum investment makes more sense when you have a large amount ready — a bonus, an inheritance, or proceeds from selling an asset — and you want to put it to work immediately rather than dripping it in over months.
Many investors use both: a monthly SIP for regular income, and occasional lumpsum top-ups when surplus cash is available. If you have a lump sum right now and want to see how it compares to your SIP projection, try our Lumpsum Calculator and look at the numbers side by side.
Honest Answers to Common SIP Questions
Are the returns in the calculator guaranteed? No. The calculator shows a mathematical projection based on a fixed assumed return rate. Real equity fund returns vary — some years are 25%, some years are negative. Over 10+ years, Indian diversified equity funds have historically averaged in the 10–14% range, but past performance does not guarantee future results.
What if I miss a month? Missing one installment doesn't cancel your SIP or damage your investment permanently. Most platforms simply skip that month if your bank account balance is insufficient and resume the following month. Consistency over years matters far more than any single missed payment.
Will I pay tax when I redeem? Yes. Equity mutual fund gains are subject to Capital Gains Tax. Units held under 12 months attract Short-Term Capital Gains tax at 20%. Units held over 12 months attract Long-Term Capital Gains tax at 12.5% on profits above ₹1.25 lakh per year. Tax rules can change — always verify current rates before redeeming. For official SEBI guidelines on mutual fund investing, visit the SEBI investor portal or the AMFI website.
Can I run more than one SIP at the same time? Yes, and many investors do. A common approach is to split monthly investments across two or three funds — for example, one large-cap fund for stability and one mid-cap fund for higher growth potential. Each SIP runs independently. You can modify or stop any one of them without affecting the others.
What's the minimum amount I need to start? Most equity mutual funds in India allow SIPs starting from ₹100 to ₹500 per month. There is no maximum. You can begin with whatever amount you're comfortable with and increase it gradually as your income grows — a practice called a Step-Up SIP.
Important Disclaimer
The SIP Calculator on EasyInvestCalc.com is a free educational tool. All projections are based on the standard SIP formula using a fixed assumed annual return. Actual mutual fund returns are market-linked and will differ — they may be significantly higher or lower depending on market conditions, fund selection, and the holding period.
This calculator does not account for fund expense ratios, exit loads, or capital gains tax. Results shown are estimates, not investment advice. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully. For personalised guidance, consult a SEBI-registered investment advisor. EasyInvestCalc.com is not a mutual fund house or registered financial advisor.
Looking for related tools? Our FD Calculator lets you compare guaranteed FD returns with your SIP projection. The PPF Calculator is useful if you want a tax-free long-term savings option alongside equity investments.