What is SIP and how does it work?

SIP (Systematic Investment Plan) allows you to invest a fixed amount monthly in mutual funds. Returns are compounded monthly, growing your wealth over time.

Is SIP better than FD?

SIP in equity mutual funds historically gives higher returns (10-15%) than FDs (6-7%), but SIP returns are not guaranteed as they depend on market performance.

What is a good SIP amount to start with?

You can start SIP with as little as Rs.500 per month. Financial advisors recommend investing 20% of your income via SIP for long-term goals.

Home›Calculators›SIP Calculator

📈 SIP Calculator

Calculate the future value of your Systematic Investment Plan (SIP) with monthly compounding.

Monthly Investment (₹)

₹

Expected Annual Return (%)

Investment Period (Years)

💡 SIP uses monthly compounding. Returns shown are estimates and not guaranteed. Mutual fund investments are subject to market risk.

🎯 Calculate SIP returns for: ₹500/month SIP · ₹1000 monthly SIP · ₹2000 SIP returns in 10 years · ₹5000 SIP for 20 years · ₹10000 SIP maturity calculator · ELSS tax saving SIP · Nifty 50 index fund SIP · Mid cap fund SIP · Zerodha Coin SIP · Groww SIP calculator · Paytm Money SIP

What is SIP?

SIP stands for Systematic Investment Plan — a method of investing a fixed amount in a mutual fund at regular intervals (usually monthly). SIP is the most popular way to invest in mutual funds in India because it removes the need to time the market and builds discipline through automatic investing.

Unlike a lump sum investment, SIP averages your purchase cost over time through Rupee Cost Averaging — you buy more units when markets are low and fewer when markets are high, reducing your overall average cost per unit.

SIP Return Formula

M = P × [(1 + r)ⁿ − 1] ÷ r × (1 + r)

Where: M = Maturity amount | P = Monthly SIP amount | r = Monthly return rate (Annual ÷ 12 ÷ 100) | n = Number of months

Example: ₹5,000/month SIP for 10 Years

SIP: ₹5,000/month | Expected Return: 12% p.a. | Duration: 10 years

Total Invested: ₹5,000 × 120 = ₹6,00,000
Estimated Returns: ₹5,61,695
Maturity Value: ₹11,61,695
Your money nearly doubled — the extra ₹5.6L is pure compounding growth.

Power of Starting Early

🕐

Start at 25 vs 35

₹5,000/month from age 25 to 60 (35 years at 12%) = ₹3.24 crore. Starting at 35 gives only ₹98 lakh. Same amount, 3× the difference.

📈

Step-Up SIP

Increase your SIP by 10% every year along with your salary hike. This dramatically boosts your corpus without feeling the pinch.

🔄

Don't Stop in Downturns

Market crashes are the best time to continue SIP — you buy more units at lower prices, which grows more when markets recover.

🎯

Goal-Based SIP

Use separate SIPs for each goal — child's education, retirement, home down payment. This keeps you focused and prevents premature withdrawal.

Best Mutual Fund Categories for SIP in India

Large Cap Funds: Lower risk, invest in top 100 companies. Suitable for conservative investors with 5+ year horizon. Expected returns: 10–12%.

Mid Cap Funds: Higher growth potential, moderate risk. Best for 7–10 year horizon. Expected returns: 13–16%.

ELSS (Tax Saving): 3-year lock-in, tax deduction up to ₹1.5L under Section 80C. Best combination of tax saving and wealth creation.

Index Funds: Track Nifty 50 or Sensex with lowest expense ratio. Ideal for beginners. Returns closely match the market index.