What is the SIP return formula?

SIP Maturity = P x [(1+r)^n - 1] / r x (1+r), where P = monthly investment, r = monthly rate (annual% / 12 / 100), n = number of months.

What is the average SIP return in India?

Historically, large-cap mutual funds in India have delivered 10-12% annual returns. Mid-cap and small-cap funds have returned 12-16% but with higher risk. ELSS funds average 12-14% with tax benefits.

💹 Investment Calculator

SIP Calculator

Calculate your Systematic Investment Plan returns — find maturity amount, wealth gained, and year-by-year mutual fund growth.

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Monthly SIP amount

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Investment period

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Expected annual return 12%

1%30%

📈 SIP Maturity Value

-- Total wealth at maturity

--Total invested

--Wealth gained

--Growth multiple

Investment composition

Invested --

Gains --

SIP vs Lumpsum (same total investment)

📅--Monthly SIP

💰--Lumpsum today

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Monthly investment

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Maturity date

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Monthly gain (avg)

Average monthly return

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Absolute return

Total return on investment

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XIRR / CAGR equivalent

Annualised return on your SIP

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Power of starting early

Year-by-year growth

Year	Invested	Gains	Total wealth

⚠️ These are projected estimates assuming constant annual returns. Actual mutual fund returns vary. Consult a financial advisor before investing.

How does SIP investment work?

SIP (Systematic Investment Plan) lets you invest a fixed amount monthly in a mutual fund. Each month your money buys units at the current NAV. Over time you benefit from rupee cost averaging and the power of compounding.

M = P × [(1+r)ⁿ − 1] / r × (1+r)
Where: P = monthly amount · r = monthly rate (annual% ÷ 12 ÷ 100) · n = months

📅 Rupee cost averaging

Investing the same amount monthly means you automatically buy more units when markets fall and fewer when they rise — reducing average cost per unit.

⏰ Power of compounding

Your returns earn returns. Starting 5 years earlier with the same SIP can more than double your final corpus. Time is the most powerful variable.

📈 Step-up SIP

Increasing your SIP by 10% annually (matching salary hikes) dramatically accelerates wealth creation compared to a flat SIP.

🏦 ELSS Tax benefit

ELSS funds qualify for ₹1.5L deduction under Section 80C with a 3-year lock-in and ~13% historical returns — combining tax saving with wealth creation.

Frequently asked questions

What is SIP and how does it work?

SIP lets you invest a fixed monthly amount in a mutual fund. Each month your money buys units at the prevailing NAV. You benefit from rupee cost averaging and compounding over time.

How much can ₹5,000/month SIP grow in 15 years?

At 12% annual returns: Total invested = ₹9L. Maturity ≈ ₹25L. Wealth gained ≈ ₹16L — nearly 2.8x your investment. Use the calculator above for your exact projection.

What is Step-Up SIP?

Step-Up SIP means increasing your monthly investment by a fixed percentage every year — e.g. starting ₹5,000/month and increasing 10% annually. This aligns with income growth and dramatically increases the final corpus.

What return rate should I use?

Use 10-12% for large-cap/index funds, 12-15% for mid-cap, 14-18% for small-cap — based on historical averages. Use a conservative estimate for long-term planning.

Is SIP better than lumpsum?

SIP is generally better for salaried investors — it removes the need to time the market. Lumpsum can outperform if invested at market lows. This calculator lets you compare both scenarios.