Calculate returns on your Systematic Investment Plan (SIP). See total investment, expected returns, wealth gained, and year-by-year growth projection. Supports step-up SIP, inflation adjustment, and reverse target calculation.
This SIP (Systematic Investment Plan) calculator helps you estimate the future value of your monthly mutual fund investments. It uses the standard future value of annuity formula with monthly compounding. All calculations are performed in your browser — no data is sent to any server.
A Systematic Investment Plan (SIP) is a method of investing a fixed amount regularly (typically monthly) into mutual funds. It helps average out purchase costs over time and builds discipline in investing.
SIP returns are calculated using the future value of annuity formula: FV = P × ((1 + r)^n − 1) / r × (1 + r), where P is monthly investment, r is monthly return rate, and n is total months. For step-up SIP, the formula adjusts for increasing contributions each year.
Step-up SIP means increasing your monthly investment by a fixed percentage every year. For example, a 10% annual step-up means your ₹5,000/month SIP becomes ₹5,500/month in year 2, ₹6,050/month in year 3, and so on. This helps combat inflation and grow wealth faster.
SIP invests a fixed amount monthly, averaging out market volatility. Lump sum invests everything at once. SIP is generally better for volatile markets and regular income earners, while lump sum may outperform in consistently rising markets.
Historically, equity mutual funds in India have delivered 12-15% annual returns over long periods (10+ years). Debt funds typically return 6-8%. Use conservative estimates (10-12%) for planning.
Inflation erodes purchasing power. A 6% annual inflation means ₹100 today will be worth ₹94 next year in real terms. Our calculator shows both nominal returns and inflation-adjusted real value to help you plan accurately.