SIP Calculator
Estimate your mutual fund corpus on monthly investments
What ₹5,000 a month actually becomes
Most people underestimate compounding because the early results feel underwhelming. The magic is in the curve — returns accelerate the longer you stay invested.
At 25 years, the invested amount is just ₹15.0L — the remaining ₹79.8L is pure compounding gain. Assumes a 12% nominal annual rate (1% monthly) and beginning-of-month payments.
When each approach works better
You're salaried with regular income, markets are volatile or trending sideways, and you want to avoid timing decisions. The fixed monthly amount buys more units when prices drop, fewer when they rise — reducing your average cost.
Markets are near a clear bottom and you have surplus cash from a bonus or windfall. Your entire capital benefits from the recovery. A middle ground: invest 60-70% lump sum immediately, route the rest via SIP over 3-6 months.
Step-up SIP — how increasing contributions can grow your corpus
What is a step-up SIP?
Increase your monthly SIP by 10% every year as your income grows. A ₹10,000 SIP stepped up by 10% annually at a 12% nominal rate for 20 years projects about ₹2.0Cr. A flat ₹10,000 SIP gives only ₹99.9L — the step-up adds ₹99.0L in the same projection, because you also invest more.
Starting early vs investing more later
A 25-year-old investing ₹5,000/month at 12% until 55 accumulates ₹1.8Cr. A 35-year-old investing ₹15,000/month reaches only ₹1.5Cr — ₹27.0L less despite 3× the monthly amount. Ten extra years of compounding beat higher contributions.
When to review your SIP
Review annually, not monthly. If the fund's rolling 3-year and 5-year returns consistently lag its benchmark by more than 1-2%, switch to a better fund in the same category. Avoid stopping SIPs during dips — those months buy cheaper units.
How rupee cost averaging works in practice
NAV swings over 6 months: 100, 80, 60, 70, 90, 110. A lump sum investor puts ₹30,000 at 100 → buys 300 units → worth ₹33,000. A SIP investor puts ₹5,000 monthly → buys 368.3 units → worth ₹40,510. The SIP investor ends up with 22% more because the dips let them accumulate cheaper units.
Learn more from our blog
Results are projections only, not guaranteed returns. Mutual fund investments are subject to market risks. Past performance does not indicate future results. This tool does not constitute investment advice — consult a licensed financial advisor before making investment decisions.
Frequently Asked Questions
What is SIP and how does it help in wealth creation?
SIP (Systematic Investment Plan) is a method of investing a fixed amount in mutual funds at regular intervals, usually monthly. It helps build wealth through rupee cost averaging (buying more units when prices are low) and the power of compounding (returns generating their own returns over time). Even small monthly amounts can grow significantly over 15-20 years.
How much SIP do I need to reach a large corpus in 15 years?
The required monthly SIP depends on the expected return and investment period. This projection uses the entered nominal annual rate divided by 12, with payments at the start of each month. Change the sliders to compare possible outcomes; actual returns vary.
Is SIP better than lump sum investment?
SIP is generally better for salaried investors who receive regular income and want to avoid timing the market. Lump sum can outperform when markets are at a clear low and you have surplus cash. For most people, SIP provides discipline, reduces average purchase cost through volatility, and removes emotional decision-making from the process.
What return rate should I assume for SIP projections?
For diversified equity mutual funds, 10-12% is a reasonable long-term estimate based on historical Nifty 50 and Sensex returns. Large-cap index funds have delivered roughly 11-13% over 15+ year periods. Debt funds typically deliver 6-8%. Use a rate 1-2% lower than historical average for conservative planning.
Can I stop or pause my SIP during a market crash?
You can, but you probably shouldn't. Market dips are when SIP works hardest for you — your fixed amount buys more units at lower prices. Investors who continued SIPs through the 2020 crash saw significantly higher returns by 2022 compared to those who paused. Only stop if you face a genuine cash-flow emergency.
Key Terms
SIP (Systematic Investment Plan)
Investing a fixed amount into a mutual fund at a regular interval, usually monthly, instead of a one-time lump sum. Builds discipline and averages your purchase cost across market cycles.
Rupee Cost Averaging
The effect of buying more fund units when prices fall and fewer when prices rise, because your monthly amount is fixed. Over long periods it lowers your average cost per unit.
XIRR
Extended Internal Rate of Return — the correct way to measure SIP returns, because each monthly instalment is invested for a different length of time. Fund apps report SIP performance as XIRR.
Step-up SIP
Increasing your SIP amount every year (typically 5–10%) as your income grows. A 10% annual step-up can nearly double the final corpus versus a flat SIP over 20 years.
Expense Ratio
The annual fee a mutual fund charges, deducted from returns. Direct plans have lower expense ratios than regular plans, which compounds into a meaningfully larger corpus over decades.