SIP Return Calculator

A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (typically monthly) into a mutual fund scheme. Instead of investing a single lump sum, an SIP averages your purchase costs over time through rupee cost averaging and compounds returns over your chosen investment horizon.

By default, this calculator uses the Effective Annual Compound Growth Rate (CAGR) formula for an Annuity Due. Contributions are assumed at the beginning of each monthly cycle, and the monthly rate is computed as (1 + R)^(1/12) - 1, matching the compound interest convention used by Indian mutual fund AMCs (such as Groww and HDFC MF). An optional toggle switches to the Nominal (R/12) convention used by Zerodha.

Calculators vary based on two mathematical choices: the monthly rate formula (Effective CAGR vs. dividing annual return by 12) and payment timing (beginning vs. end of month). For identical inputs (e.g. ₹10,000/mo at 12% for 20 years), Effective CAGR produces ₹91.99 Lakhs while Nominal R/12 produces ₹99.91 Lakhs (+8.62% divergence). Both are documented financial conventions.

No. Mutual fund investments are subject to market risks. Past performance and entered return percentages are illustrative assumptions for planning purposes, not guarantees or forecasts. Actual portfolio returns fluctuate based on market movements and the performance of underlying securities.

An annual Step-Up increases your monthly contribution each year (e.g., by 10% in line with salary increments). Because larger sums enter the compounding process earlier in your investment timeline, an annual step-up significantly accelerates final corpus growth compared to a flat monthly installment.

The 15×15×15 rule is a traditional financial rule of thumb stating that investing ₹15,000/month for 15 years at an expected 15% annual return will accumulate approximately ₹1 Crore. Mathematically, this milestone was derived using nominal R/12 compounding (r = 15%/12 = 1.25% monthly), which yields ₹1,01,52,946 (~₹1.02 Crore). Under our conservative Effective Annual CAGR default (i = (1+0.15)^(1/12)-1), ₹15,000/month for 15 years accumulates to ₹92,45,484 (crossing ₹1 Crore in approximately 15.7 years).

Under our default Effective Annual CAGR formula (12% expected return, beginning of month): in 10 years, a ₹5,000 monthly SIP accumulates to ₹11,20,179 (~₹11.20 Lakhs, comprising ₹6,00,000 invested + ₹5,20,179 gains). In 20 years, it accumulates to ₹45,99,287 (~₹45.99 Lakhs, comprising ₹12,00,000 invested + ₹33,99,287 gains). (Under the Nominal R/12 convention, the 10-year total is ₹11.62 Lakhs and the 20-year total is ₹49.96 Lakhs due to monthly compounding to an effective yield of 12.68% p.a.).

To reach ₹1 Crore at an expected 12% return under our default Effective Annual CAGR convention (beginning-of-month): approximately ₹5,875/month for 25 years (₹17.63L invested), ₹10,871/month for 20 years (₹26.09L invested), ₹21,011/month for 15 years (₹37.82L invested), or ₹44,636/month for 10 years (₹53.56L invested). (Under the Nominal R/12 convention, the required monthly contributions are ₹5,270 for 25Y, ₹10,009 for 20Y, ₹19,819 for 15Y, and ₹43,041 for 10Y).

Under the Income-tax Act, 2025 (codifying the capital gains framework enacted under the Finance Act, 2024), equity mutual fund gains are taxed based on holding period: Long-Term Capital Gains (LTCG, units held >12 months) are taxed at 12.5% on aggregate net profits exceeding ₹1.25 Lakhs per financial year across your equity portfolio (Section 198). Short-Term Capital Gains (STCG, units held ≤12 months) are taxed at 20.0% (Section 196). In an SIP, each monthly installment is evaluated independently under First-In, First-Out (FIFO) rules. This is an illustrative summary for resident individuals and not individual tax advice.

An SIP is an investment mechanism (typically into mutual funds), whereas FDs, RDs, and PPF are specific fixed-income savings instruments. Bank FDs and RDs provide contractually guaranteed interest (subject to bank credit risk up to DICGC insurance limits) with zero market volatility, but returns are fully taxable at individual income slab rates. PPF offers sovereign-guaranteed, tax-free returns (EEE status) with a strict 15-year tenure. Equity mutual fund SIPs carry market risk with fluctuating returns and no capital guarantee, but historically offer long-term potential to outpace inflation. Selection depends on your risk tolerance, investment horizon, and liquidity needs.