# SIP Calculator

> Future value of a monthly SIP or a lumpsum mutual fund investment, with a year-by-year table.

Interactive calculator: https://www.cashiq.in/tools/sip-calculator
Last updated: 2026-11-10

A SIP calculator estimates what a fixed monthly mutual fund investment grows to, compounding each instalment monthly at your expected annual return. For example, ₹10,000 a month for 15 years at 12% grows to about ₹50,45,760, of which ₹18,00,000 is your own money.

## How it is calculated

```
M = P × ((1 + i)^n − 1) / i × (1 + i)
```

- P is the monthly SIP amount.
- i is the monthly rate: the expected annual return ÷ 12 ÷ 100.
- n is the number of monthly instalments: years × 12.
- Each instalment is assumed to be invested at the start of the month. Lumpsum mode uses P × (1 + r)^t, compounded yearly.
- Real value = future value ÷ (1 + inflation)^years.

## Worked example

- Inputs: ₹10,000 a month, 12% expected return, 15 years
- Result: ₹18,00,000 invested, ₹32,45,760 estimated returns, ₹50,45,760 total value
- Open it: https://www.cashiq.in/tools/sip-calculator?amount=10000&rate=12&years=15

## Use it with your own numbers

Add query parameters to the calculator URL. The page renders the result, a one-sentence summary and a year-by-year table in its HTML.

| Parameter | Meaning | Allowed values |
| --- | --- | --- |
| `amount` | Monthly SIP, or the lumpsum amount, in ₹ | 100 to 10,00,000 (lumpsum up to 10 crore) |
| `rate` | Expected annual return, % | 1 to 30 |
| `years` | Investment period in years | 1 to 40 |
| `mode` | Monthly SIP or one-time lumpsum | monthly | lumpsum |

Example: https://www.cashiq.in/tools/sip-calculator?amount=10000&rate=12&years=15

JSON API: https://www.cashiq.in/api/v1/sip-calculator?amount=10000&rate=12&years=15

## Rules and assumptions

- Returns are an assumption, not a guarantee. Equity mutual funds do not pay a fixed rate, and real returns vary from year to year.
- The result is before tax. A fund's expense ratio is already reflected in its NAV, so use a return net of costs.
- The real (inflation-adjusted) value divides the corpus by (1 + inflation)^years, using the inflation rate you enter.
- The goal planner reverses the SIP formula: monthly SIP needed = target ÷ (((1 + i)^n − 1) / i × (1 + i)).

## Frequently asked questions

### 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.

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Results are estimates for planning, not investment, tax or legal advice. Returns are assumptions, not guarantees. Source: CashIQ, https://www.cashiq.in/tools/sip-calculator