SIP calculator

A SIP (Systematic Investment Plan) is a way to invest a fixed amount in a mutual fund at regular intervals, usually every month. Each instalment buys units at that day’s NAV, so you buy more units when the NAV is low and fewer when it is high.

The calculator treats each instalment as invested at the start of the month and applies the yearly return divided by 12 every month, compounding monthly. The formula is shown on this page. Real fund returns will differ because market returns are not constant.

There is no single right number. Returns depend on the fund type and the period, and past returns do not predict future returns. A conservative assumption is safer for planning. To see what real funds have delivered over 3 and 5 years, use the screener.

No. Mutual fund returns are subject to market risk. The result only shows what would happen if the fund grew at exactly the rate you entered every month.

A lumpsum invests the whole amount at once. A SIP spreads the money over time, so each instalment is invested for a different length of time. Use the lumpsum calculator to compare the two for the same assumptions.

At an assumed 12% a year, ₹5,000 a month grows to about ₹11,61,695 in 10 years, ₹25,22,880 in 15 years and ₹49,95,740 in 20 years. The amounts you put in are ₹6,00,000, ₹9,00,000 and ₹12,00,000. The 12% is an assumption, not a promise.

About ₹99,91,479 at an assumed 12% a year, on ₹24,00,000 invested. At 10% it is about ₹76,56,969 and at 8% about ₹59,29,472, which shows how much the result depends on the return.

The calculator shows the amount in future rupees. To see it in today’s money, divide it by (1 + inflation) for each year, or simply enter a return that is lower by the inflation rate. For example, a 12% return with 6% inflation is roughly a 6% real return. The inflation calculator on this site does the conversion.

Each instalment is a separate purchase with its own holding period. For equity funds, gains on units held for more than 12 months are long-term, and gains on units sold earlier are short-term and taxed at a higher rate. The guide to mutual fund taxation on this site has the details.