How is SIP return calculated?
A SIP (Systematic Investment Plan) invests a fixed amount in a mutual fund every month. Each instalment compounds for the time it stays invested. Without a step-up, the maturity value is:
- P = monthly investment
- i = monthly rate of return = annual rate ÷ 12 ÷ 100
- n = number of monthly instalments
Example
₹10,000 a month for 10 years at 12% a year: you invest ₹12 lakh, and it could grow to about ₹23.23 lakh. That's roughly ₹11.2 lakh in returns.
Why a step-up SIP makes a big difference
Most people's income rises every year, but their SIP stays the same. If you raise your SIP by 10% every year, the example above grows to about ₹33.7 lakh instead of ₹23.2 lakh. Try it with the step-up slider.
Frequently asked questions
Are SIP returns guaranteed?
No. Mutual fund returns depend on the market. This calculator assumes a constant return rate, so treat the result as an estimate, not a promise.
What return rate should I assume?
Many people use 10–12% for long-term equity funds and 6–8% for debt funds. Past returns don't guarantee future results, so it's wise to check a lower rate too.
Does this include tax?
No. Capital gains tax on mutual funds depends on the fund type and holding period, and it isn't included here.
This calculator is for information only and is not investment advice. Mutual fund investments are subject to market risks.