RubanTools

SIP Calculator

Calculate the future value of your SIP investments with optional annual step-up - and find the SIP needed for any financial goal.

Why SIP Works

Rupee Cost Averaging

You buy more units when markets fall and fewer when they rise. Over time, this averages your cost and reduces timing risk significantly.

Power of Compounding

₹5,000/month at 12% for 20 years = ₹49 lakh. Invested total: ₹12 lakh. Returns: ₹37 lakh. The longer you stay, the more exponential the growth.

Step-Up SIP

Increase SIP by 10% each year as income grows. This simple habit can nearly double your corpus vs a fixed SIP over 15–20 years.

ELSS Tax Saving

SIP in ELSS mutual funds qualifies for ₹1.5L/year deduction under Sec 80C (old regime). With 3-year lock-in - lowest of any 80C instrument.

SIP Calculator - Systematic Investment Plan Returns

A Systematic Investment Plan (SIP) allows investors to invest a fixed amount regularly - typically monthly - into mutual funds. SIPs leverage the power of rupee cost averaging and compounding to build wealth over time. Since SEBI opened the mutual fund industry to retail investors in the 1990s, SIPs have grown dramatically: AMFI data shows SIP contributions crossed Rs. 23,000 crore per month in 2024, with over 8 crore active SIP accounts in India - a tenfold increase from 2016.

How SIP Returns Are Calculated

SIP returns are computed using the future value of a recurring investment formula: FV = P x [((1 + r)^n - 1) / r] x (1 + r), where P is the monthly investment, r is the monthly return rate, and n is the number of months. This calculator also supports step-up SIPs - where the monthly contribution increases by a fixed percentage each year - which are increasingly popular among salaried professionals whose income grows annually. A goal planner mode calculates the SIP amount needed to reach a target corpus.

SIP for Indian Investors

SIPs are ideal for salaried individuals in India who receive monthly income and want to invest without timing the market. Long-term equity SIPs held for 15-20 years have historically delivered 12-15% CAGR. Tax-saving ELSS funds via SIP qualify for Section 80C deductions up to Rs. 1.5 lakh. This calculator gives a clear year-by-year breakdown of corpus growth to aid investment planning.

SIP Calculator Questions

SIP (Systematic Investment Plan) is a method of investing a fixed amount in a mutual fund at regular intervals - typically monthly. Each instalment buys units at the current NAV. Over time, SIPs benefit from rupee cost averaging (buying more units when prices are low) and compound growth - ideal for salaried investors who want to invest consistently without timing the market.

Historical SIP returns in India vary by fund category: large-cap equity funds 10–13% CAGR over 10+ years; mid-cap 13–17%; small-cap 15–20% (higher volatility); hybrid funds 9–12%; debt funds 6–8%. Past returns do not guarantee future performance. Use our calculator to model your expected corpus at any assumed annual return rate.

A Step-Up SIP increases your monthly SIP amount by a fixed percentage each year - for example, 10% annually. This mirrors salary increments and dramatically increases your final corpus. Example: ₹5,000/month SIP for 20 years at 12% = ₹49.5 lakh. The same SIP with 10% annual step-up = ₹1.11 crore - more than double.

SIP invests a fixed amount regularly - averaging out the cost of units over time, ideal for salaried investors. Lump sum invests a large amount at once - better when markets are low and you have surplus cash. SIPs reduce timing risk through rupee cost averaging. For most retail investors, SIP is the recommended approach to long-term wealth creation.

To accumulate ₹1 crore (assuming 12% CAGR): in 10 years ≈ ₹43,500/month; in 15 years ≈ ₹20,000/month; in 20 years ≈ ₹10,000/month; in 25 years ≈ ₹5,300/month. Longer investment periods require dramatically lower monthly amounts due to compounding. Use our SIP Goal Calculator to find the exact monthly investment needed for any target corpus.