Clacify

SIP Calculator

Calculate mutual fund SIP returns and future value

Built & maintained by Pappu Venkata Subbi Reddy, founder of Clacify · Updated July 2026 · Formulas verified against official Indian government sources

About SIP Calculator

The SIP Calculator estimates the maturity value of a Systematic Investment Plan in mutual funds. Enter your monthly investment, the expected annual return, and the investment period, and it projects the total corpus, the amount you actually invested, and the wealth gained from compounding. SIPs are the most popular way Indians invest in equity mutual funds because they average out market volatility (rupee-cost averaging) and enforce disciplined monthly investing. The calculator also lets you factor in an annual step-up — increasing your SIP by, say, 10% every year as your salary grows — which can dramatically increase the final corpus.

Why Use SIP Calculator?

How It Works

The future value of a monthly SIP uses the compound-growth annuity formula: M = P × [((1+i)^n − 1) ÷ i] × (1+i), where P is the monthly investment, i is the monthly rate of return (expected annual return ÷ 12 ÷ 100), and n is the total number of monthly instalments. Wealth gained = M − (P × n). For a step-up SIP, the instalment is increased by the chosen percentage at the start of each year and each year's contributions are compounded for the remaining months. Returns are assumptions, not guarantees — equity mutual funds are market-linked, and historical category returns (roughly 11–14% over long periods) are useful planning estimates only.

What a ₹10,000/month SIP can grow to (at 12% p.a.)

DurationYou investEst. value @ 12%Wealth gained
5 years₹6,00,000₹8,24,864₹2,24,864
10 years₹12,00,000₹23,23,391₹11,23,391
15 years₹18,00,000₹50,45,760₹32,45,760
20 years₹24,00,000₹99,91,479₹75,91,479
25 years₹30,00,000₹1,89,76,351₹1,59,76,351
30 years₹36,00,000₹3,52,99,138₹3,16,99,138

12% is a long-run assumption for diversified equity funds, not a guarantee. Notice how "wealth gained" overtakes the amount you invested somewhere around year 12–13 — that crossover is compounding starting to do the heavy lifting.

Why starting early beats investing more

Look at the table: investing ₹10,000/month for 30 years builds ₹3.53 crore from just ₹36 lakh of contributions. Start ten years later and run it for 20 years instead, and the same ₹10,000/month reaches only ₹99.9 lakh. Those ten extra years cost you barely ₹12 lakh more in contributions but over ₹2.5 crore in final corpus. In a SIP, time in the market is a far bigger lever than the monthly amount — which is why the best day to start was years ago, and the second best is today.

SIP vs lump sum

A SIP spreads your buying across market highs and lows, so you automatically buy more units when prices fall (rupee-cost averaging). That suits anyone investing out of a monthly salary and removes the impossible job of timing the market. A lump sum can beat a SIP in a steadily rising market, but it also exposes your whole capital to bad timing. For most salaried investors, a monthly SIP is the natural, lower-stress choice.

Step up your SIP as your salary grows

Increasing your SIP by about 10% each year — a "step-up" — keeps your investing in step with your income and dramatically lifts the final corpus, because every raise still compounds for all the remaining years. If your salary rises but your SIP stays flat, inflation quietly shrinks the real value of what you invest. Set an automatic annual step-up and you barely notice the increase while the corpus grows far faster.

A realistic word on returns

Equity mutual funds are market-linked. Returns are volatile year to year and can be negative over short periods — the 12% used here reflects long-run category averages, not any single year and not a promise. Match your SIP horizon to your goal (5+ years for equity funds), stay invested through the dips, and treat these projections as planning estimates, not predictions.

Frequently Asked Questions

How to calculate SIP returns in India?

SIP maturity value uses: M = P × [(1 + r)^n − 1] ÷ r × (1 + r), where M is maturity value, P is monthly SIP, r is monthly return rate (annual rate ÷ 12 ÷ 100), and n is total months. Example: ₹5,000/month at 12% for 10 years gives approximately ₹11.6 lakh on ₹6 lakh invested.

What is a realistic SIP return rate in India?

Nifty 50 index funds have historically delivered 12–14% CAGR over 10+ year periods. Actively managed large-cap funds average 10–13%. Mid and small-cap funds can range from 12–18% over long periods. For conservative planning, financial advisors typically recommend using 10–12% as the expected return in SIP projections.

Sources & references

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