Updated July 2026

SIP Calculator

Calculate your Systematic Investment Plan returns with annual step-up. Toggle inflation and LTCG tax to see the real value of your investments.

₹
Allowed range: ₹500 to ₹1,00,000. Values outside this range are adjusted to the nearest limit.
%
Allowed range: 1 to 30%. Values outside this range are adjusted to the nearest limit.
Yrs
Allowed range: 1 to 40 Yrs. Values outside this range are adjusted to the nearest limit.
Annual Step-up
Adjust for Inflation
%
Allowed range: 3 to 12%. Values outside this range are adjusted to the nearest limit.
Deduct LTCG Tax

Invested Amount
Est. Returns
Nominal Future Value

₹23.23 L

Invested Amount

₹12.00 L

Est. Returns

₹11.23 L

Value in today's rupees (6% inflation)

₹12.97 L

Your ₹23.23 L is reduced to ₹12.97 L in today's purchasing power at 6% inflation. That's 44% less than the headline number.

How this result is calculated

Formula: Each monthly contribution earns the selected annual return divided by 12. Contributions are added at the start of each month; an enabled step-up raises them once a year. Goal mode reverses the same calculation to estimate the starting monthly SIP.

Active assumptions: 12% annual return, 6% annual inflation, with no annual step-up. Returns and inflation are constant estimates, not forecasts or guaranteed outcomes.

Tax treatment (2026–27): When enabled, the estimate treats all gains as long-term gains from an equity-oriented fund, applies one ₹1.25 L exemption, then 12.5% tax and 4% cess. It does not model holding periods, other capital gains or losses, surcharge, STT, or fund-specific tax treatment.

Educational estimate only, not investment or tax advice. Rules and your circumstances may differ. Last verified 2 July 2026.

Income Tax Department: Income-tax Act, 2025Union Budget: capital-gains changesRBI: inflation target framework

Investment Growth Over Time

₹0₹6.4L₹12.8L₹19.2L₹25.6L1Y2Y3Y4Y5Y6Y7Y8Y9Y10Y

Chart from year 1 to year 10. Total Value changes from ₹1.3L to ₹23.2L. Invested changes from ₹1.2L to ₹12L. After Inflation changes from ₹1.2L to ₹13.0L.

Total Value
Invested
After Inflation

Year-wise Breakdown

10 years

How SIP Works

A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly in mutual funds. The power of SIP lies in rupee cost averaging and the compounding effect over long periods.

SIP Formula

FV = P × [((1+r)n - 1) / r] × (1+r)

Where P = monthly investment, r = monthly rate of return, n = total number of months.

What Makes This Calculator Different

Most calculators show you nominal returns: the big shiny number. But that number doesn't account for:

  • Inflation: at the default 6% assumption, ₹1 crore in 20 years has about ₹31 lakhs of today's purchasing power
  • LTCG Tax: when enabled, the estimate applies 12.5% + 4% cess to gains above ₹1.25 L
  • Step-up: most investors increase their SIP yearly. Not accounting for this underestimates your actual corpus

SIP vs Lumpsum: Quick Comparison

If you invest ₹10,000/month SIP for 20 years at 12% returns, you get ₹99.9 lakhs. The same total amount (₹24 lakhs) invested as lumpsum on day 1 grows to ₹2.32 crores. Lumpsum wins mathematically, but SIP is practical for salaried individuals and protects against timing risk.

How to Use This SIP Calculator

  1. Enter your monthly investment amount using the slider or type directly
  2. Set your expected annual return rate (12% is reasonable for equity mutual funds over 10+ years)
  3. Choose your investment duration
  4. Enable "Annual Step-up" if you plan to increase SIP yearly (recommended: 10%)
  5. Toggle inflation and LTCG tax for the reality check: this is what your money is actually worth

SIP by Amount & Duration

₹1,000/month for 10 years ₹1,000/month for 15 years ₹1,000/month for 20 years ₹2,000/month for 10 years ₹2,000/month for 15 years ₹3,000/month for 15 years ₹3,000/month for 20 years ₹5,000/month for 10 years ₹5,000/month for 15 years ₹5,000/month for 20 years ₹10,000/month for 10 years ₹10,000/month for 15 years ₹10,000/month for 20 years ₹10,000/month for 30 years ₹15,000/month for 12 years ₹15,000/month for 15 years ₹15,000/month for 20 years ₹20,000/month for 15 years ₹20,000/month for 20 years ₹25,000/month for 15 years ₹25,000/month for 20 years ₹25,000/month for 25 years ₹30,000/month for 20 years ₹50,000/month for 15 years ₹50,000/month for 20 years

Frequently Asked Questions

What is SIP (Systematic Investment Plan)?
SIP is a method of investing a fixed amount regularly (usually monthly) in mutual funds. It helps you build wealth through rupee cost averaging and the power of compounding over time.
How is SIP return calculated?
SIP returns are calculated using the formula: FV = P × [((1+r)^n - 1) / r] × (1+r), where P is the monthly investment, r is the monthly rate of return (annual rate / 12), and n is the total number of months.
What is step-up SIP?
Step-up SIP (also called top-up SIP) means increasing your monthly SIP amount by a fixed percentage every year. For example, a 10% step-up on ₹10,000/month means you invest ₹11,000 in year 2, ₹12,100 in year 3, and so on. This significantly boosts your final corpus.
Why should I adjust for inflation?
Inflation reduces the purchasing power of money over time. At the default 6% assumption, ₹1 crore in 20 years has about ₹31 lakhs of today's purchasing power. Change the rate to test another assumption.
How does LTCG tax affect my SIP returns?
When enabled, the calculator estimates tax on equity-fund gains above ₹1.25 L at 12.5% plus 4% cess. The estimate assumes one long-term redemption and does not cover every investor or fund circumstance.
What is a good SIP amount to start with?
You can start a SIP with as little as ₹500/month. However, the ideal amount depends on your financial goals. A good rule of thumb: to build ₹1 crore in 15 years at 12% returns, you need approximately ₹20,000/month SIP.
Is SIP better than lumpsum investment?
Neither is universally better. SIP wins in volatile markets through rupee cost averaging, while lumpsum wins in consistently rising markets. SIP is better for salaried individuals who invest from monthly income. Use our Lumpsum vs SIP calculator to compare for your specific situation.
What happens if I miss a SIP installment?
Missing one or two SIP installments won't significantly impact your long-term returns. However, consistency is key to benefiting from compounding. Most fund houses don't charge penalties for missed installments: they simply skip that month.

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