Simple SIP Calculator

Estimate SIP returns, maturity amount, and compare two SIP scenarios side by side.

SIP Basics

Results

Total Invested ₹ 0
Total Gains ₹ 0
Future Value ₹ 0
Total
Invested Gains
For illustration only. Actual returns vary by market.

Capital Growth Over Time

Corpus

Second SIP Inputs

Results (SIP 2)

Total Invested ₹ 0
Total Gains ₹ 0
Future Value ₹ 0
Total
Invested Gains
For illustration only. Actual returns vary by market.

SIP Comparison

SIP 1 Corpus SIP 2 Corpus

What is SIP and How It Works?

SIP (Systematic Investment Plan) is a disciplined investment method where you invest a fixed amount regularly in mutual funds. Instead of investing a large lump sum, SIP lets you invest small amounts monthly, making it accessible to everyone.

When you start a SIP, your monthly contribution automatically gets invested in your chosen mutual fund scheme. Over time, your investments compound and grow, benefiting from rupee cost averaging — you buy more units when markets are down and fewer when markets are up, averaging out your purchase cost.

SIP is the most popular investment method in India because it builds financial discipline, requires no market timing, and creates significant wealth over the long term.

What This SIP Calculator Does

This SIP Calculator helps you estimate the future value of your monthly SIP investments based on three key inputs:

  • Monthly SIP Amount (your regular investment)
  • Investment Period (number of years)
  • Expected Return (CAGR percentage)

Using these inputs, the calculator instantly shows:

  • Total amount you will invest over the period
  • Total gains/returns earned from compounding
  • Final future value (corpus) at maturity
  • Year-wise capital growth through charts
  • Comparison between two different SIP scenarios

This helps you plan financial goals like retirement, children's education, house down payment, or wealth creation.

How SIP Returns Are Calculated

The SIP Calculator uses the Future Value of Annuity formula to compute returns:

FV = P × [((1 + r)^n - 1) / r] × (1 + r)

Where:

  • FV = Future Value (maturity amount)
  • P = Monthly SIP amount
  • r = Monthly rate of return (annual CAGR ÷ 12)
  • n = Total number of monthly contributions (years × 12)

Your monthly contributions compound every month at the expected rate. The longer you invest, the more powerful the compounding effect becomes, exponentially increasing your wealth.

SIP vs Lumpsum: A Detailed Comparison

Both SIP and Lumpsum are valid investment approaches, but they suit different investor profiles, financial situations, and market conditions. Here's a comprehensive breakdown to help you choose the right strategy.

Key Differences at a Glance

Aspect SIP Lumpsum
Investment Style Fixed amount every month Entire amount invested at once
Capital Required Lower monthly commitment Large upfront capital needed
Market Timing Risk Minimal (rupee cost averaging) Significant (depends on timing)
Discipline Required High (consistent investing) Low (one-time decision)
Flexibility Can pause or adjust easily Fixed commitment
Psychological Stress Lower (gradual investing) Higher (all-in at once)
Best for Salaried individuals, beginners Windfall amounts, investors with conviction
Ideal Market Condition Volatile / uncertain markets Market dips or bull runs

When to Choose SIP

SIP is your best choice if:

  • You earn a regular salary and want to invest from monthly income
  • You're new to investing and want to learn gradually with low capital
  • You want to avoid the stress of market timing decisions
  • You prefer rupee cost averaging — buying more units in downturns, fewer in upturns
  • You lack a large lump sum but can commit ₹500-₹50,000/month
  • You believe in building wealth through consistent, disciplined investing
  • Market volatility makes you uncomfortable, and gradual investment helps you sleep at night

When to Choose Lumpsum

Lumpsum is ideal if:

  • You receive a windfall (bonus, inheritance, property sale proceeds)
  • You have strong conviction that markets are undervalued (dip buying)
  • You have a large surplus that you don't need for daily expenses
  • You want to deploy capital immediately and benefit from full compounding period
  • Historical data suggests you're investing at a market bottom
  • You have already built an emergency fund and have stable income
  • You prefer simplicity and don't want to remember monthly investment dates

Real-World Example: ₹1 Crore Goal

Scenario A: Using SIP

  • Monthly SIP: ₹10,000
  • Time period: 20 years
  • Expected CAGR: 12%
  • Total invested: ₹24 lakh
  • Final corpus: ₹1 crore (approximately)
  • Advantage: Low monthly commitment, automatic investing, no timing pressure

Scenario B: Using Lumpsum

  • Lumpsum invested: ₹25 lakh upfront
  • Time period: 20 years
  • Expected CAGR: 12%
  • Final corpus: ₹1.54 crore (approximately)
  • Advantage: Higher corpus due to more capital deployed, full compounding from day 1
  • Drawback: Requires ₹25L upfront capital; if market crashes after investment, initial returns suffer

The Hybrid Approach: Best of Both Worlds

Most investors combine both strategies:

  • Use Lumpsum for: One-time windfalls, bonus payouts, or when markets are significantly down
  • Use SIP for: Regular salary-based savings to build wealth systematically
  • Example: ₹5,000/month SIP + ₹50,000 lumpsum when you get a bonus = disciplined + opportunistic investing

Pro Tip: The "best" investment strategy is the one you can stick with consistently. SIP wins for regular investors because it builds discipline, removes market timing pressure, and leverages rupee cost averaging—making wealth creation more reliable over 15-20 years.

How Much SIP for ₹1 Crore? Goal Planning Guide

One of the most common questions: How much SIP do I need to reach ₹1 crore?

Illustrative Examples (at 12% CAGR):

Investment Period Monthly SIP Required Total Invested
10 Years ₹43,500/month ₹52.2 lakh
15 Years ₹20,000/month ₹36 lakh
20 Years ₹10,000/month ₹24 lakh
25 Years ₹5,500/month ₹16.5 lakh
30 Years ₹3,000/month ₹10.8 lakh

These are illustrative calculations. Actual returns depend on market performance. Start early to benefit from compounding!

How to use this calculator for goal planning: Enter your target corpus (e.g., ₹1 crore), adjust time period and CAGR, then experiment with different monthly SIP amounts until you reach your goal.

Key Assumptions Used in This Calculator

To keep calculations transparent and simple, this SIP calculator assumes:

  • SIP contributions are made at the beginning of each month
  • Returns compound monthly based on annual CAGR
  • CAGR remains constant throughout the investment period
  • No missed SIP installments or withdrawals during tenure
  • No taxes, expense ratio, or exit loads are deducted
  • Results are illustrative and not guaranteed
  • Actual mutual fund returns vary based on market conditions and fund performance

Always consult your fund factsheet for actual expense ratios and historical returns before investing.

Understanding the SIP Calculator Charts

Capital Growth Over Time: This line chart shows how your SIP investment grows year by year. The blue line represents your total corpus value. Notice how growth accelerates in later years due to compounding - this is the "magic" of long-term investing.

Invested vs Gains Breakdown: The ring chart visually separates your total contributions (green) from investment returns/gains (light teal). This helps you see how much of your wealth comes from your own money versus market returns.

SIP Comparison Chart: The dual-line comparison chart lets you compare two different SIP scenarios side-by-side, helping you understand the impact of changing investment amounts, tenure, or expected returns.

These visuals make it easier to understand why consistent, long-term SIP investing is powerful for wealth creation.

Who Should Use This SIP Calculator?

This calculator is ideal for:

  • First-time mutual fund investors planning monthly SIPs
  • Salaried professionals wanting to automate savings
  • Anyone planning retirement corpus or financial goals
  • Investors comparing different SIP amounts and tenures
  • Parents planning children's education or marriage funds
  • Young professionals starting their investment journey
  • Anyone wanting to understand SIP compounding power

SIP is suitable for all age groups and income levels. Start with as little as ₹500/month and increase gradually as your income grows.

How to Use the Alternative SIP Calculator (Compare Two Paths)

This page includes an Alternative SIP section (SIP 2) so you can compare two different investment paths side by side. Use it to answer questions like:

  • Should I invest ₹10,000 for 20 years or ₹15,000 for 15 years?
  • What happens if my expected return is 10% instead of 12%?
  • How does increasing tenure compare to increasing monthly SIP?

Step-by-step:

  1. Set your primary SIP (SIP 1) using Monthly SIP, Years, and CAGR.
  2. Open the Second SIP Inputs and enter the alternative plan (SIP 2).
  3. Review both result panels and the SIP Comparison chart to see which path builds a higher corpus.
  4. Adjust one variable at a time (SIP amount, tenure, or CAGR) to understand trade-offs clearly.

This comparison is especially useful for goal planning—choose the plan that fits your monthly budget while reaching your target corpus.

Final Note and Disclaimer

This SIP calculator is provided for educational and planning purposes only. It is not financial advice and does not guarantee returns. Mutual fund investments are subject to market risks. SIP outcomes depend on fund performance, market conditions, asset allocation, and fund expenses. Past performance does not guarantee future results. Always read scheme documents carefully and consider consulting a qualified financial advisor before investing.