SIP Calculator to calculate SIP returns, maturity value and investment growth using compound interest with inflation adjustment, step-up SIP, and lump sum comparison. Plan mutual fund SIPs with instant results.
Plan your Systematic Investment Plan with inflation-adjusted returns, step-up SIP, and lump sum comparison
Amount to invest monthly
Annual return rate
Duration of your SIP
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Systematic Investment Plans come in various forms to suit different financial goals and investor preferences. Understanding these types helps you choose the right approach for your investment journey.
The most common form of SIP where you invest a fixed amount at regular intervals (monthly, quarterly). This provides consistency and helps build disciplined saving habits without requiring active decision-making each period.
Also known as Flex SIP, this option allows you to vary your contribution amount based on your cash flow or income changes. If you earn more in certain months, you can increase your SIP amount; during leaner periods, you can reduce it while maintaining investment continuity.
A powerful wealth-building approach where your SIP amount increases automatically at predetermined intervals, typically annually. This matches salary increments and helps you invest more as your income grows, significantly accelerating wealth creation over time.
Unlike traditional SIPs with fixed end dates, perpetual SIPs continue indefinitely until you manually stop them. This approach maximizes the power of compounding over extended periods and is ideal for long-term goals like retirement planning where the time horizon is flexible.
An advanced option where investments are triggered based on specific conditions such as market index levels, fund NAV thresholds, or predetermined dates. This allows you to attempt buying at favorable market conditions, though it requires more active monitoring and market understanding.
Enables you to invest in multiple mutual fund schemes using a single SIP mandate. This simplifies portfolio diversification, allowing you to spread investments across different asset classes, fund houses, or investment strategies without setting up separate SIPs for each fund.
Inflation erodes purchasing power over time, making it essential to target investment returns that exceed inflation rates. Understanding average inflation in your country helps set realistic SIP return expectations and ensures your wealth grows in real terms, not just nominal value.
| Country | Avg Inflation Rate | Notes |
|---|---|---|
| United States | 2-3% | Long-term average |
| India | 4-6% | Emerging market trend |
| United Kingdom | 2-3% | Developed economy |
| Other Countries | Varies | Depends on region |
Note: These are historical averages for educational purposes and do not represent real-time or projected data.
SIP investing combined with equity market exposure offers one of the most effective strategies to outpace inflation over time. By consistently investing and allowing returns to compound, you can build wealth that grows faster than the erosion caused by rising prices.
Systematic Investment Plans have become one of the most popular investment methods globally due to their simplicity, flexibility, and effectiveness in building wealth over time.
Beginning your SIP journey is straightforward, but taking a structured approach ensures your investments align with your financial goals and risk tolerance.
Understanding how SIP works through practical examples helps visualize the potential of consistent, long-term investing. Here's a realistic scenario showing the power of compounding.
Monthly SIP amount: ₹5,000 (approximately $60 or £50)
Investment duration: 10 years (120 months)
Expected annual return: 12%
Total investment: ₹6,00,000 (₹5,000 × 120 months)
Estimated maturity value: Approximately ₹11,50,000
Wealth created: Around ₹5,50,000 through compounding
This example uses assumed constant returns for illustration. Actual returns will vary based on market performance and fund selection. The figures demonstrate the potential impact of long-term disciplined investing.
Notice that nearly half the final value comes from investment returns rather than your contributions. This demonstrates why starting early and staying invested is crucial—the longer your money compounds, the more wealth you can accumulate relative to your actual investment.
Both SIP and lump sum investments have their place in a well-rounded portfolio. The choice depends on your financial situation, risk appetite, and market outlook.
| Aspect | SIP | Lump Sum |
|---|---|---|
| Market timing | Not required | Important for maximizing returns |
| Risk | Averaged through cost averaging | Higher due to single entry point |
| Discipline | High (automated) | Depends on investor behavior |
| Suitability | Regular income earners | Surplus funds available |
Many investors use a combination approach: maintaining regular SIPs for disciplined investing while making lump sum investments during market corrections or when surplus funds become available.
Understanding the tax treatment of your SIP investments helps you plan better and optimize after-tax returns. Tax rules vary significantly by country and are subject to change.
When you redeem mutual fund units, the difference between your purchase price and sale price is treated as capital gains. Each SIP installment is considered a separate purchase, so gains are calculated individually for each installment when you sell.
Most tax jurisdictions distinguish between short-term and long-term capital gains based on holding period. Equity funds typically qualify for long-term treatment after 12 months, while debt funds may require 36 months. Long-term holdings usually receive preferential tax rates.
Tax treatment varies widely: some countries tax dividends but exempt certain capital gains, while others may have retirement account provisions that defer taxes. Tax rates, exemption limits, and indexation benefits differ across jurisdictions.
Tax laws change frequently and have significant individual variations. Always consult a qualified tax professional or certified financial advisor in your jurisdiction before making investment decisions. The information provided here is for general educational purposes only and should not be considered tax advice.
Even the best investment strategy can underperform if executed poorly. Being aware of these common mistakes helps you stay on track toward your financial goals.
Key Takeaway: Successful SIP investing is about consistency, patience, and disciplined execution rather than trying to time markets or chase exceptional returns. Stay the course, review annually, and let compounding work its magic over time.
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Updated for 2026
This SIP Calculator is reviewed and maintained by the VIP Calculator Team to ensure accurate and consistent investment calculations based on standard financial principles.
Calculations are based on commonly used SIP and compound interest formulas widely referenced in financial planning and investment education.
Results are estimates for educational and planning purposes only. Actual returns may vary due to market performance, fund expenses, taxes, and investment risks.
This tool does not provide financial, investment, or tax advice. Always consult a qualified financial advisor before making investment decisions.
All calculations run entirely in your browser. No financial data or personal information is stored or shared.
Important Disclaimer
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully. Past performance is not indicative of future returns. The calculator provides estimates based on assumed constant returns, which may not reflect actual market conditions. Please consult a certified financial advisor before making investment decisions.
The SIP calculator uses the compound interest formula to calculate the maturity value of your systematic investment plan.
Final Value = P × ((1 + r/n)^(n×t) - 1) / (r/n) × (1 + r/n)
Where:
P = Monthly Investment Amount
r = Expected Annual Return Rate (in decimal, e.g., 0.12 for 12%)
t = Time Period (in years)
n = 12 (number of times interest is compounded per year, monthly)
Total Investment = P × 12 × t
Estimated Returns = Final Value - Total Investment
SIP is a method of investing a fixed amount regularly (monthly/quarterly) in mutual funds. It helps build wealth through disciplined investing and rupee-cost averaging, reducing the impact of market volatility.
SIP returns are calculated using the compound interest formula: FV = P × ((1 + r/n)^(n×t) - 1) / (r/n) × (1 + r/n), where P is monthly investment, r is annual return rate, t is time in years, and n is 12 (monthly compounding).
Equity mutual funds historically provide 10-15% annual returns, while debt funds offer 6-8%. However, returns vary based on market conditions, fund performance, and investment duration. Longer investment periods generally yield better returns.
Most mutual funds allow SIPs starting from ₹500 per month. However, for meaningful wealth creation, financial experts recommend investing at least ₹1,000-₹5,000 per month depending on your financial goals and capacity.
Yes, most mutual funds allow you to increase, decrease, or pause your SIP. You can also start multiple SIPs in the same fund with different amounts. Some funds offer a 'step-up SIP' feature to automatically increase your investment periodically.
SIP works best over long periods (5+ years) due to the power of compounding. The longer you invest, the more your money grows. For retirement planning, 15-20 year SIPs are ideal. For short-term goals (3-5 years), consider debt or hybrid funds.
No, SIP returns are not guaranteed as mutual funds are market-linked investments. However, long-term SIPs in diversified equity funds have historically provided good returns. Past performance doesn't guarantee future results, but disciplined long-term investing generally reduces risk.
Yes, most SIPs are flexible and allow you to withdraw (redeem) your investment anytime. However, some funds may have an exit load (fee) if you withdraw within a specified period (usually 1 year). ELSS (tax-saving) funds have a 3-year lock-in period.