SIP Calculator

What Is a SIP — and Why Do Over 10 Crore Indians Use It?

A Systematic Investment Plan (SIP) lets you invest a fixed amount into a mutual fund at regular intervals — usually every month. The fund uses that money to buy units at the current NAV (Net Asset Value). Month after month, you accumulate units. Over time, as the fund grows, those units grow with it.

SIP has become India's dominant investment method. Monthly SIP contributions reached ₹32,087 crore in March 2026 — an all-time high, driven by a consistent and growing base of retail investors. For the 61st consecutive month since March 2021, equity mutual funds recorded net positive inflows — a streak that has held through multiple market corrections. The reason for this resilience is exactly what makes SIP powerful: it removes the two biggest barriers to investing — needing a large lump sum to start, and needing to time the market.

When you invest via SIP, you automatically buy more units when markets fall (because NAV is lower) and fewer units when markets rise. This is called rupee cost averaging, and it structurally lowers your average cost per unit compared to a lump-sum entry at a single price point.

How to Use the SIP Calculator — Step-by-Step Guide

This SIP calculator gives you an estimated maturity value, wealth gain, year-wise growth chart, step-up SIP projection, inflation-adjusted returns, goal planner, and scenario comparison — all in real time. Here's how to get the most out of it:

1. 1
   Set your monthly SIP amount

   Use the slider, type directly in the box, or tap one of the quick-select buttons (₹1K / ₹3K / ₹5K / ₹10K / ₹25K / ₹50K). The minimum SIP amount is ₹500. Start with what you can commit to today — you can always increase it later using Step-up SIP.

   💡 Don't have a number in mind? Start with 10–15% of your monthly take-home salary.
2. 2
   Choose a fund category preset or enter your assumed return

   Pick from the fund presets — Debt (6%), Balanced (10%), Large Cap (12%), Mid/Small Cap (15%) — which are rough historical averages, not guarantees. Or type a custom rate. For conservative planning, use 10–12%. Avoid using rates above 15% for long-term projections — markets don't deliver that consistently.

   ⚠️ A warning appears automatically if you enter a rate above 18% p.a.
3. 3
   Set the investment duration

   Drag the slider or use the quick buttons (3Y / 5Y / 10Y / 15Y / 20Y / 30Y). The longer your horizon, the more dramatic the compounding effect. For goal-based planning, set the duration to how many years until you need the money.

   📅 Projections beyond 25 years carry high uncertainty — a caveat appears automatically for these durations.
4. 4
   Read your estimated results instantly

   The right panel shows your Estimated Maturity Value, Estimated Wealth Gain, XIRR (approx.), and the donut chart breakdown of invested vs. gains. All values update live as you change any input — no "Calculate" button needed.
5. 5
   Enable Step-up SIP for a realistic projection

   Toggle on "Step-up SIP" and set your expected annual increment (10% is a good default if your salary grows similarly). The calculator shows exactly how much extra wealth step-up generates vs. a flat SIP — this single number often motivates people to commit to annual increments.

   🪜 Even a 5% annual step-up can add 30–40% more corpus over 15 years.
6. 6
   Enable Inflation Adjustment to see real purchasing power

   Toggle on "Inflation Adjustment" and set the inflation rate (6% is India's long-term average). The calculator shows your corpus in today's rupees — a ₹1 crore corpus 20 years from now may only feel like ₹30–40L in current purchasing power. This keeps your goals realistic.
7. 7
   Explore the Growth Schedule and Smart Insights

   Scroll down to "Growth Schedule" to see the year-by-year or month-by-month chart and table. Open "Smart Insights" to get personalised observations about your scenario — like how much more 5 extra years would earn, or whether inflation is eroding your real return. Use the "Scenario Comparison" to test two different SIP plans side by side.
8. 8
   Use the Goal Planner to reverse-engineer your SIP

   Have a target in mind — like ₹50L for a home down payment or ₹2 crore for retirement? Open "Goal Planner", enter your target amount and timeframe, and the calculator tells you exactly how much monthly SIP you need. Or enter your SIP amount and it tells you how many years to reach the goal.

   🎯 Goal Planner is the most useful feature for new investors starting with a specific purpose in mind.

How SIP Returns Are Calculated — Formula and Logic Explained

The SIP return calculation is the future value of an annuity where each monthly instalment compounds at the fund's monthly return rate for the remaining period. This calculator uses the beginning-of-period convention — consistent with how Indian AMCs process SIPs (debit on the SIP date, units allocated at that day's NAV):

Each monthly instalment grows at the fund's monthly return rate for the remaining period. Your ₹10,000 invested in month 1 compounds for all 120 months (10 years). Your ₹10,000 in month 2 compounds for 119 months. And so on — the total is the sum of all these future values. This is the same formula used by AMCs and AMFI-registered platforms.

Realistic return benchmarks for Indian equity funds

The assumed return rate is the single biggest driver of your projected corpus — and the biggest source of uncertainty. Here are realistic benchmarks based on historical Indian market data:

• Large-cap equity / Nifty 50 index funds: ~12–14% CAGR over rolling 15-year periods
• Mid-cap funds: ~14–17% CAGR but with significantly higher volatility and drawdowns
• Hybrid funds (60:40 equity-debt): ~10–12% CAGR
• Debt / liquid funds: ~6–8% p.a. (linked to prevailing interest rates)

For conservative long-horizon planning, 12% is a reasonable central assumption for equity funds — not guaranteed, but historically grounded over 10+ year periods. Use 10% for pessimistic and 15% for optimistic scenarios. The scenario comparison tool above lets you run all three instantly.

Understanding XIRR vs CAGR on your SIP

This calculator shows two return metrics. XIRR (shown on the hero card) is the true annualised return on each monthly cashflow — it's approximately equal to your assumed rate because it measures what each rupee earned. CAGR on invested (shown below) maps your total invested amount to the final corpus and will always be lower than XIRR for a SIP — because later instalments had less time to grow. Both numbers are correct; they measure different things.

SIP Taxation in FY 2026–27 (AY 2027–28) — Complete Guide

Understanding how your SIP gains are taxed is essential — it directly affects your real post-tax returns. Here is the complete, current picture as of May 2026.

Capital gains tax on equity SIP redemption

The Finance (No. 2) Act, 2024, effective for transfers on or after 23 July 2024, changed the capital gains rates for equity-oriented mutual funds: STCG increased from 15% to 20%, and LTCG increased from 10% to 12.5%, while the annual LTCG exemption increased from ₹1 lakh to ₹1.25 lakh. These rates remain unchanged and apply in FY 2026–27.

Income tax slabs — FY 2026–27 (AY 2027–28)

Budget 2026 confirmed no changes to income tax slabs for FY 2026-27. The slabs introduced in Budget 2025 continue to apply. The new Income Tax Act 2025 takes effect from 1 April 2026 but makes no changes to slab rates or deduction limits.

How to maximise the ₹1.25L LTCG exemption — tax harvesting

Every financial year, the first ₹1.25 lakh of long-term capital gains from equity mutual funds is completely tax-free. For most retail SIP investors whose annual gain is below this threshold, the effective LTCG tax rate is zero — a massive advantage over FD interest, which is fully taxable at your slab rate.

Tax harvesting strategy: Once your SIP has run for 12+ months, selectively redeem units to book up to ₹1.25L of LTCG each financial year (before 31 March), then immediately reinvest. This resets your cost basis at a higher NAV, reducing future LTCG liability. Done consistently over a 15–20 year SIP horizon, this can save lakhs in tax — at no cost other than a few minutes of action each year.

Step-Up SIP — The Most Underused Wealth Multiplier in India

A step-up SIP (also called a top-up SIP) automatically increases your monthly SIP amount by a fixed percentage every year. Most people set their SIP once and never revisit it — even as their income grows. Step-up SIP closes this gap automatically.

The logic is simple: if your salary grows 10% a year but your SIP stays flat, your effective savings rate is falling. A practical rule is to increase your SIP by at least half your annual increment percentage. Most AMCs allow you to configure automatic annual step-up when registering your SIP — it costs nothing to set up.

SIP vs Lump Sum — Which Is Better for Investing in India?

This is one of the most debated questions in Indian personal finance, and the honest answer is: it depends on market conditions at the time of investment, which no one can predict reliably. Here's a clear breakdown:

The practical advice for most investors: Use SIP for regular monthly income, and optionally deploy lump sums during significant market corrections (15–25% from recent highs). The data consistently shows that "time in market" beats "timing the market" for equity over 10+ year periods. Trying to perfectly time a large lump sum entry rarely works for retail investors — but doing nothing waiting for the "right time" is usually worse.

How Much SIP Per Month Do You Need to Reach ₹1 Crore?

The required monthly SIP depends entirely on your return assumption and how many years you have. Here's a comprehensive table at three return scenarios:

The table makes the power of time clear: at 12% returns, reaching ₹1 crore takes ₹43,100/month over 10 years — but only ₹2,900/month over 30 years. That's a 15× difference in required monthly commitment, purely from compounding time. Every year you delay starting your SIP increases the required monthly amount by roughly 10–15%.

These are pre-tax, pre-inflation figures. After LTCG at 12.5% on gains above ₹1.25L, your post-tax corpus will be slightly lower. Strategic annual tax harvesting (see the tax section above) can significantly reduce this bill. Use the Goal Planner tool above to calculate the exact SIP needed for any custom target and timeframe.

6 Things Smart SIP Investors Do Differently

SIP Calculator FAQ — Frequently Asked Questions

• What is the LTCG tax on equity SIP mutual funds in FY 2026–27? ▼
  For equity-oriented mutual funds in FY 2026–27, LTCG (units held more than 12 months) is taxed at 12.5% under Section 112A on gains exceeding ₹1.25 lakh per financial year. STCG (units held 12 months or less) is taxed at 20% under Section 111A. 4% Health & Education Cess applies on both.
  
  For SIP investors, each monthly instalment has its own holding period. FIFO applies on redemption — the oldest units are sold first. This means when you redeem a 3-year SIP, the first 24 months' units attract LTCG at 12.5%, but the last 12 months' units attract STCG at 20%.
  
  Budget 2026 confirmed no changes to these capital gains rates. The new Income Tax Act 2025, effective 1 April 2026, also makes no changes to these rates.
• How much monthly SIP is needed to make ₹1 crore in 10 years? ▼
  At an assumed return of 12% per annum, you need approximately ₹43,100 per month to accumulate ₹1 crore in 10 years. At 10% p.a. (conservative), the required amount is approximately ₹48,800/month. At 15% p.a. (optimistic), it drops to approximately ₹35,800/month.
  
  These are pre-tax estimates. With strategic annual LTCG tax harvesting of the ₹1.25L annual exemption, the effective tax on your gains can be reduced significantly. Use the Goal Planner above to calculate the exact SIP needed for any custom target amount and timeframe.
• How accurate is this SIP calculator? ▼
  The SIP calculator uses the industry-standard beginning-of-period annuity formula — the same methodology used by AMCs and AMFI-registered platforms. The mathematical calculation is precise for a given assumed return rate.
  
  However, the projections are only as accurate as your return assumption. Real mutual funds do not deliver a constant annual return — returns vary significantly year to year. Markets can and do fall 30–50% in bad years. The calculator is best used for comparing scenarios and understanding compounding mechanics — not for treating any number as a guaranteed outcome. All results are clearly labelled as illustrative estimates.
• What is the new income tax slab for FY 2026–27 under the new regime? ▼
  Under the new tax regime for FY 2026–27 (AY 2027–28): ₹0–₹4L — Nil; ₹4L–₹8L — 5%; ₹8L–₹12L — 10%; ₹12L–₹16L — 15%; ₹16L–₹20L — 20%; ₹20L–₹24L — 25%; above ₹24L — 30%.
  
  The Section 87A rebate of ₹60,000 makes income up to ₹12L effectively tax-free. For salaried individuals, an additional ₹75,000 standard deduction means the effective tax-free threshold is ₹12.75L. Note that capital gains (LTCG/STCG on equity funds) are taxed at their own flat rates and are not affected by which income tax regime you choose.
• Is SIP taxed differently under the new vs old tax regime? ▼
  No. LTCG at 12.5% and STCG at 20% on equity mutual funds apply identically under both tax regimes. Capital gains are not added to your regular income — they are taxed at flat rates regardless of your chosen regime or income bracket.
  
  Where the regime choice matters for SIP investors is ELSS (Equity Linked Savings Scheme): the Section 80C deduction for ELSS is available only under the old regime. Under the new regime, a plain index fund or diversified equity fund with no 3-year lock-in may be more appropriate than ELSS, since you lose the 80C benefit.
• Can I stop or pause my SIP anytime? Is there a penalty? ▼
  Yes. A SIP can be paused or stopped at any time with no penalty from the mutual fund — SIPs are not locked-in commitments like FDs or PPF. The accumulated units remain invested and continue growing (or fluctuating) with the market. You can redeem them whenever you choose, subject to applicable capital gains tax at that time.
  
  The exception is ELSS SIPs — ELSS units have a mandatory 3-year lock-in from each purchase date. You can stop the SIP itself, but you cannot redeem units until 3 years after each instalment's purchase date.
  
  Note: some banks may charge a small ECS bounce penalty if your SIP debit fails due to insufficient balance. This is a bank charge, not an AMC penalty.
• What is the difference between XIRR and CAGR for a SIP? ▼
  For a SIP, XIRR (Extended Internal Rate of Return) measures the true annualised return earned on each rupee you invested, accounting for the different time each instalment was invested. It is the most accurate measure of a SIP's performance and will be close to the assumed annual return rate.
  
  CAGR (Compound Annual Growth Rate) on a SIP maps your total invested amount to the final corpus. Because later SIP instalments had less time to compound, this number is always lower than XIRR. Both metrics are shown in this calculator — they are not contradictory, just measuring different things. XIRR is what to compare against other investments; CAGR-on-invested tells you the absolute return on capital deployed.
• What is the minimum SIP amount in India? ▼
  Most mutual funds allow a minimum SIP of ₹500 per month. AMFI also introduced "Chhoti SIP" which allows SIP investments as low as ₹250 per month, aimed at first-time and low-income investors. This calculator supports SIP amounts starting from ₹500/month.
  
  There is no upper limit to a SIP amount. Institutional investors and HNIs often run SIPs of ₹50L–₹1 crore per month across multiple funds.