How is SIP return calculated?
Each monthly instalment compounds at the monthly rate until the end of the period: M = P × ((1 + i)^n − 1) / i × (1 + i), where i is the annual return ÷ 12 ÷ 100 and n is the number of months. For example, ₹10,000 a month for 15 years at 12% gives about ₹50,45,760.
What return should I assume for a SIP?
It depends on the fund type. Many planners use 10–12% a year for diversified equity funds held 10 years or more, and 6–8% for debt funds. These are assumptions for planning, not promises: past returns do not guarantee future returns, so also check a lower rate.
How much SIP do I need for ₹1 crore?
At an assumed 12% a year, about ₹10,009 a month for 20 years, or about ₹19,819 a month for 15 years. Use the goal planner on this page to try your own target, return and period.
What is the inflation-adjusted value of my SIP?
It is what your future corpus would buy in today's money: corpus ÷ (1 + inflation)^years. At 6% inflation, ₹1 crore received after 20 years buys about what ₹31,18,047 buys today. The calculator shows this real value next to the nominal value.
Is SIP better than lumpsum?
A SIP spreads purchases over time, which reduces the risk of investing everything at a market peak and suits a monthly salary. A lumpsum invested early can earn more if markets rise steadily, because all the money is invested for longer. The calculator shows both results for the same money.
What is a step-up SIP?
A step-up (top-up) SIP raises the monthly amount by a fixed percentage every year, often in line with salary increases. Even a 10% yearly increase makes a large difference over 15–20 years. Use the Step Up SIP Calculator to model it.
What is the minimum SIP amount?
Most mutual funds accept SIPs from ₹500 a month; some start at ₹100 or ₹1,000. Check the scheme information document of the fund you choose.
Are SIP returns taxed?
Gains are taxed as capital gains when you redeem units, under rules that depend on the fund type and how long each unit was held. Every SIP instalment is a separate purchase with its own holding period. This calculator shows values before tax.
What happens if I miss a SIP instalment?
Fund houses usually do not charge a penalty, but your bank may charge for a failed auto-debit, and several consecutive missed instalments can lead the fund house to cancel the SIP. Your existing units stay invested either way.
Why is my actual SIP return different from the calculator?
The calculator assumes the same return every month. Real fund NAVs rise and fall, so your actual return, usually measured as XIRR, depends on the prices at which each instalment bought units.
