A SIP (Systematic Investment Plan) lets you invest a fixed amount in a mutual fund every month — and small, regular investments can grow into serious wealth thanks to compounding. Use this free SIP calculator to estimate what your monthly investment could become, and switch on step-up to see how increasing your SIP each year supercharges the result.
SIP Calculator — with Step-Up
See how much your monthly SIP could grow. Turn on step-up to increase your investment every year as your income rises — and watch the difference compounding makes.
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How this works: assumes monthly investing with returns compounded monthly at your expected rate; step-up increases the monthly amount once each year. Returns are an estimate — actual mutual fund returns are not guaranteed and vary with the market. Equity gains held over 1 year are taxed at 12.5% above ₹1.25 lakh per year. This is an educational tool, not investment advice. New to SIPs? Read what a SIP is and why to start today.
How much can a monthly SIP grow to?
Here’s how a regular monthly SIP can compound over time, assuming a 12% annual return (a common long-term assumption for equity funds — not a guarantee):
| Monthly SIP | Duration | You invest | Estimated value |
|---|---|---|---|
| ₹2,000 | 10 years | ₹2.4 lakh | ₹4.6 lakh |
| ₹5,000 | 10 years | ₹6 lakh | ₹11.6 lakh |
| ₹5,000 | 20 years | ₹12 lakh | ₹50 lakh |
| ₹10,000 | 15 years | ₹18 lakh | ₹50.5 lakh |
| ₹15,000 | 20 years | ₹36 lakh | ₹1.5 crore |
Notice how the returns portion dwarfs the invested amount over long periods — that’s compounding doing the heavy lifting. The earlier you start, the more powerful it gets.
The step-up SIP advantage
Most people’s income rises every year — so why keep your SIP flat? A step-up SIP increases your monthly investment by a set percentage annually (say 10%). The impact is dramatic: a ₹5,000 SIP at 12% for 20 years grows to about ₹50 lakh, but the same SIP stepped up 10% each year grows to nearly ₹1 crore — for the same starting amount. Toggle “Step up my SIP every year” in the calculator above to try it with your own numbers.
How the SIP calculation works
The calculator assumes you invest monthly and that returns compound monthly at your chosen rate. Each month’s contribution earns returns for all the remaining months, which is why later years grow so fast. The formula behind a regular SIP is:
Future Value = P × [ (1 + i)^n − 1 ] / i × (1 + i) where P = monthly amount, i = monthly return, n = number of months
Put your SIP to work
New to investing? Start with what a SIP is and why to start today and how mutual funds work. To free up money for a bigger SIP, check your take-home salary and make sure you’re on the right tax regime. And remember — SIPs reward long-term investing, not market timing.
Frequently asked questions
How much will I get if I invest ₹5,000 per month for 10 years?
At an assumed 12% annual return, a ₹5,000 monthly SIP for 10 years grows to about ₹11.6 lakh, on a total investment of ₹6 lakh. Returns are market-linked and not guaranteed, so the actual figure will vary.
What is a step-up SIP?
A step-up (or top-up) SIP increases your monthly investment by a fixed percentage every year as your income grows. Because you invest more in later years, the final corpus can be far larger than a flat SIP.
Are SIP returns guaranteed?
No. SIPs invest in mutual funds, whose returns depend on the market. The 12% default is only a long-term assumption for equity funds — actual returns can be higher or lower, and negative over short periods.
Are SIP returns taxable in India?
Yes. For equity mutual funds held over one year, long-term capital gains above ₹1.25 lakh in a financial year are taxed at 12.5%. ELSS funds also qualify for a Section 80C deduction.
Can I start a SIP with ₹500?
Yes — most mutual funds allow SIPs starting at ₹500 per month, and some even lower. The key is to start early and stay consistent; you can always increase the amount later, or use a step-up SIP to do it automatically.
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