Estimate what a monthly or yearly SIP could grow to, with an optional yearly step-up, and see its value in today’s money.
Invested
₹12,00,000
Returns
₹11,23,391
Total Value
₹23,23,391
Total
₹23,23,391
Press play or drag the slider to watch every installment flow from your wallet into your fund and grow, year by year.
Before your first installment
₹0
Invested
₹0
Returns
₹0
Monthly SIP
₹10,000
Your SIP is ready: ₹10,000 will move from your wallet into the fund every month. Press play to watch it grow.
| Year | Invested | Est. Returns | Total Value |
|---|---|---|---|
| 1 | ₹1,20,000 | ₹8,093 | ₹1,28,093 |
| 2 | ₹2,40,000 | ₹32,432 | ₹2,72,432 |
| 3 | ₹3,60,000 | ₹75,076 | ₹4,35,076 |
| 4 | ₹4,80,000 | ₹1,38,348 | ₹6,18,348 |
| 5 | ₹6,00,000 | ₹2,24,864 | ₹8,24,864 |
| 6 | ₹7,20,000 | ₹3,37,570 | ₹10,57,570 |
| 7 | ₹8,40,000 | ₹4,79,790 | ₹13,19,790 |
| 8 | ₹9,60,000 | ₹6,55,266 | ₹16,15,266 |
| 9 | ₹10,80,000 | ₹8,68,215 | ₹19,48,215 |
| 10 | ₹12,00,000 | ₹11,23,391 | ₹23,23,391 |
A Systematic Investment Plan (SIP) is a way of investing a fixed sum at a regular interval — most often every month — into a mutual fund, index fund or similar pooled investment. Rather than trying to find the perfect moment to invest a large amount, you commit to a small, repeatable amount and let time do the heavy lifting.
Each installment buys units at that day's price. When markets are down, the same amount buys more units; when they are up, it buys fewer. Over many years this smooths out your average purchase price — an effect called rupee-cost averaging in India and dollar-cost averaging elsewhere.
The real engine behind a SIP is compounding: returns earned in one year start earning returns of their own the next. The longer the money stays invested, the larger the share of your final corpus that comes from growth rather than from your own contributions.
The monthly SIP that reaches every 1,000,000 of target, invested at the start of each month with no step-up. Divide your target by a million and multiply by the figure for your period and return:
| Years | Return 10% | Return 12% | Return 14% |
|---|---|---|---|
| 10 years | 4,841 | 4,304 | 3,815 |
| 15 years | 2,393 | 1,982 | 1,632 |
| 20 years | 1,306 | 1,001 | 760 |
| 25 years | 747 | 527 | 367 |
A 10% yearly step-up lets you start much lower: at 12%, about 1,152 per million for 15 years and 503 for 20, roughly 40% and 50% less than a flat SIP.
For a goal with a date, the Goal Calculator works this out directly. If you already have savings to invest, the SIP + Lumpsum Calculator shows how much smaller the SIP can be, and Cost of Delay shows what starting a few years later costs.
Take a base case of investing a fixed amount every month for 15 years at an assumed 12% a year. The first row of the table below is that base case; each row after it changes just one thing, so you can see which lever matters most. Every figure is calculated with the same formula this calculator uses.
| Scenario | Invested | Est. Returns | Total Value |
|---|---|---|---|
| ₹10,000/month · 12% · 15 years (base case) | ₹18,00,000 | ₹32,45,760 | ₹50,45,760 |
| Base case with a 10% annual step-up | ₹38,12,698 | ₹48,71,152 | ₹86,83,849 |
| Base case, continued for 20 years | ₹24,00,000 | ₹75,91,479 | ₹99,91,479 |
| Base case at 10% instead of 12% | ₹18,00,000 | ₹23,79,243 | ₹41,79,243 |
| ₹1,20,000 once a year · 12% · 15 years | ₹18,00,000 | ₹32,10,394 | ₹50,10,394 |
Staying invested for five more years roughly doubles the final value, even though you put in only a third more money — time is the strongest lever in the table.
A 10% yearly step-up lifts the final value by about 70%. It also more than doubles what you invest, so look at the returns column as well as the total.
Earning 10% instead of 12% trims the final value by about a sixth — a good reason to plan with a conservative rate.
Investing the same yearly total as one annual installment ends slightly lower, because returns compound once a year instead of every month.
Both routes can reach the same goal. The better fit mostly depends on how your money arrives and how comfortable you are with timing risk.
| Aspect | SIP | Lumpsum |
|---|---|---|
| Best suited to | Regular income such as a monthly salary | A large sum available now — a bonus, sale proceeds or an inheritance |
| Market-timing risk | Low — purchases are spread across many dates | Higher — the whole amount goes in at a single price |
| In a steadily rising market | Grows less, since later installments are invested for less time | Grows more, since all the money compounds from day one |
| Discipline | Automates saving and is easy to stick with | Needs the full sum up front and the nerve to invest it all at once |
| Minimum to begin | Can start with a small amount | Usually needs a meaningful one-time amount |
Many investors combine the two: a lumpsum whenever a windfall arrives, plus an ongoing SIP from monthly income. The SIP + Lumpsum calculator models exactly that.
At a 12% return, investing the same amount at the start of every month:
One crore is 10 million. With a 10% yearly step-up, you can start lower: about 11,500 a month for 15 years.
A lot, because the larger installments compound too. Investing 10,000 a month for 15 years at 12%:
Over 20 years the gap widens: a 10% step-up roughly doubles the final value.
A Systematic Investment Plan (SIP) lets you invest a fixed amount at regular intervals — usually monthly — into a mutual fund, instead of investing a large sum all at once. It builds discipline and averages out your purchase cost across market ups and downs.
Each monthly contribution is assumed to compound at your expected annual return, converted to a monthly rate, from the day it is invested until the end of the tenure. Summing the compounded value of every contribution gives the future value — see "How the Numbers Are Calculated" below for the exact formula.
A step-up SIP automatically increases your monthly contribution by a fixed percentage at the start of every year, so your investment grows in line with your income instead of staying flat for the entire tenure.
No. It assumes a constant annual return for the entire tenure, which real markets never deliver — actual returns fluctuate year to year. Treat the result as a planning estimate, not a guarantee.
No. The projection shows gross growth before capital gains tax, fund expense ratio, and any exit load. Your actual take-home returns will be lower after these are factored in.
There's no single right number. Many planners use 10–12% a year for diversified equity funds over long periods, around 7–9% for hybrid funds and less for debt funds. Past returns don't guarantee future ones, so also run a more conservative rate and make sure your plan still works with it.
Usually, yes. Most fund houses and platforms let you pause, stop, increase or reduce a SIP at any time, typically with no penalty for the SIP itself. Units you already own stay invested; selling them may attract an exit load or tax depending on the fund and how long you've held it.
For the same yearly total, a monthly SIP spreads your purchases across twelve dates and compounds more often, so it usually ends slightly ahead. A yearly SIP can still suit people whose income arrives once a year. Use the frequency toggle to compare the two.
Over long periods, which day of the month you pick has very little effect on returns. It's more useful to choose a date shortly after your salary is credited, so the debit never fails.
Work backwards from your goals: decide the amount you need and by when, then use the Goal Calculator to find the monthly SIP required. A common rule of thumb is to invest at least 15–20% of take-home pay across all goals — but a budget and an emergency fund come first.
The calculator simulates a monthly SIP with each contribution invested at the start of the month (an "annuity due"), compounding monthly at your expected annual return.
With no step-up, this simulation reduces to the standard closed-form SIP future value formula:
Future Value (no step-up)
FV = P × [((1 + i)^n − 1) / i] × (1 + i)
SIPCafe's calculators and guides are for education and planning only and are not investment, tax or legal advice. Results are estimates based on the assumptions you enter; actual returns vary and are not guaranteed. Consider speaking with a qualified financial adviser before making investment decisions. SIPCafe is not a registered investment adviser and does not recommend any specific security, fund or scheme. All investments carry market risk; read a fund's or scheme's official documents carefully before investing.
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