How to Use the SIP Calculator
Enter your monthly SIP amount, expected annual return rate, and investment tenure. Toggle between Regular SIP and Step-up SIP (where your monthly amount increases by a percentage each year). The maturity value and year-by-year growth chart update instantly.
SIP Calculator Formula
FV = P × {(1+r)^n − 1} × (1+r) / rP= Monthly SIP amountr= Monthly return rate (annual rate ÷ 12 ÷ 100)n= Number of months (tenure × 12)
Example Calculation
SIP of ₹5,000/month at 12% p.a. for 10 years:
r = 12/12/100 = 0.01; n = 120; FV = 5000 × ((1.01)^120 − 1) × 1.01 / 0.01
Maturity Value ≈ ₹11.61 lakh on ₹6 lakh invested (wealth gain ≈ ₹5.61 lakh)
Frequently Asked Questions
How is SIP return calculated?
SIP maturity value = P × {(1+r)^n − 1} × (1+r) / r, where P = monthly investment, r = monthly return rate (annual rate ÷ 12), n = number of months.
What is a step-up SIP?
A step-up SIP increases your monthly investment amount by a fixed percentage each year (e.g., 10% annually). This accounts for salary growth and significantly boosts your corpus over time.
Is 12% a realistic SIP return rate?
Historical large-cap equity mutual fund returns in India have averaged 12–15% over 10+ year periods. However, past returns do not guarantee future performance. For conservative planning, use 10–12%.