SIP Calculator — Mutual Fund SIP Returns Calculator 2024-25
Calculate mutual fund SIP returns with the power of compounding. See year-wise wealth growth, total invested vs returns breakdown. Free online SIP calculator for India.
SIP Calculator
Plan your SIP investments
Investment Summary
Total Value
₹23,23,391
Total Invested
₹12,00,000
Est. Returns
₹11,23,391
Investment vs Returns
What is SIP?
Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly in mutual funds. Instead of investing a lump sum, you invest a predetermined amount at regular intervals — typically monthly.
SIP helps you benefit from rupee cost averaging — you buy more units when prices are low and fewer when prices are high, averaging out your cost over time. Combined with the power of compounding, SIP can help you build significant wealth over the long term.
Benefits of SIP
- Disciplined investing — Automates your investment habit
- Rupee cost averaging — Reduces impact of market volatility
- Power of compounding — Earnings generate more earnings
- Flexibility — Start with as low as ₹500/month
- No market timing — No need to predict market movements
SIP Calculator Formula
The SIP calculator uses the future value of annuity formula:
FV = M × [{(1+i)n - 1} / i] × (1+i)
Where:
- FV = Future Value (maturity amount)
- M = Monthly SIP amount
- i = Monthly interest rate (annual rate / 12 / 100)
- n = Total number of monthly installments
Example Calculation
If you invest ₹10,000/month for 10 years at 12% p.a.:
- Total investment: ₹12,00,000
- Estimated returns: ₹11,23,391
- Total value: ₹23,23,391
Frequently Asked Questions
What is the minimum amount to start a SIP?
Most mutual fund houses in India allow you to start a SIP with as little as ₹500 per month. Some funds may have a minimum of ₹100 or ₹1,000. You can increase your SIP amount at any time.
What returns can I expect from SIP?
SIP returns depend on the type of mutual fund. Historically, equity mutual funds in India have delivered 12-15% CAGR over 10+ years, while debt funds typically return 6-8%. Past performance does not guarantee future returns.
Is SIP better than lump sum investment?
SIP is generally better for regular income earners as it enforces discipline and averages out market volatility through rupee cost averaging. Lump sum can be better if you have a large amount and the market is at a low point. For most investors, SIP is recommended.
Can I stop my SIP anytime?
Yes, you can stop your SIP at any time without any penalty (except for ELSS funds which have a 3-year lock-in). Your existing investments will continue to grow. You can also pause and restart your SIP.
Are SIP returns taxable?
Yes. For equity mutual funds, STCG (Short Term Capital Gains — held less than 1 year) is taxed at 20%, and LTCG (Long Term Capital Gains — held more than 1 year) above ₹1.25 lakh is taxed at 12.5%. For debt funds, gains are taxed as per your income tax slab.
What is the power of compounding in SIP?
Compounding means your returns also earn returns. In SIP, each monthly investment starts compounding from the date of investment. Over long periods (10-20+ years), compounding creates a snowball effect, making your wealth grow exponentially.
Need Help with Your Business?
Get expert assistance for company registration, tax filing, and compliance.
- Free Expert Consultation
- 100% Online Process
- Transparent Pricing
- Dedicated Support Manager
Get Expert Consultation
Get expert guidance • Callback in 30 minutes