SIP Calculator

How to Use This SIP Calculator

1. Enter your monthly SIP amount (e.g. ₹5,000).
2. Enter the expected yearly return (equity funds have historically averaged 10–14%).
3. Enter the number of years you plan to invest and tap Calculate.

Formula

Example: ₹5,000 per month at 12% for 10 years: invested ₹6,00,000, estimated returns ≈ ₹5,61,695, total value ≈ ₹11,61,695.

Frequently Asked Questions

📖 SIP को और अच्छे से समझें

SIP कैसे काम करती है, कितना रिटर्न मिलता है और कैसे शुरू करें — पूरी जानकारी आसान भाषा में पढ़ें:

Worked example with real numbers

₹10,000 a month for 15 years at an assumed 12% annual return:

Roughly 64% of the final corpus comes from returns rather than your contributions. That proportion rises sharply with time — which is the entire case for starting early rather than starting big.

Why starting age beats SIP amount

All ending at age 60, assuming 12%:

Look at the last two rows. Starting at 40 with double the SIP and ₹9 lakh more invested still barely matches starting at 35 with half the amount. Time is doing work that money cannot replace.

What return should you assume?

SIP returns are not guaranteed. Historical long-run figures for Indian equity funds sit broadly in these ranges, but any individual period can look very different:

Rupee cost averaging, honestly

Because you invest a fixed amount each month, you automatically buy more units when prices are low and fewer when high. Over a full market cycle this tends to give a better average cost than trying to time entries.

What it does not do is protect you from losses. In a sustained downturn your portfolio value will fall. What it does is stop you from putting everything in at a single unlucky moment, and it removes the need to make a judgement call every month.

The practical implication: continuing your SIP through a market fall is usually the right move, because those are precisely the months when your money buys the most units.

Tax on SIP returns

• Equity funds held over 12 months — long-term capital gains, with an annual exemption and a concessional rate above it.
• Equity funds held under 12 months — short-term capital gains, taxed at a higher fixed rate.
• Debt funds — gains are added to your income and taxed at your slab rate.
• ELSS funds — qualify for 80C deduction under the old regime, with a three-year lock-in.

Each SIP instalment is treated as a separate purchase for holding-period purposes, so units bought in the last twelve months are short-term even if you started years ago. Rates and exemption limits change with each Budget, so verify current figures before planning around them.

Common mistakes

• Stopping the SIP when markets fall. This is the single most costly behavioural error — you stop buying exactly when units are cheapest.
• Assuming the projected figure is guaranteed. It is a scenario, not a promise.
• Using CAGR to measure SIP returns. Use XIRR, which handles instalments made at different dates.
• Ignoring expense ratio. A 1% difference compounds to lakhs over two decades. Direct plans cost less than regular.
• Holding too many funds. Six large-cap funds mostly own the same stocks. Three to four well-chosen funds is plenty.
• Not stepping up. Increasing your SIP by 10% a year as your income grows changes the outcome dramatically — see the step-up SIP calculator.

More questions

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