SIP Returns Calculator
Calculate Systematic Investment Plan returns with optional step-up SIP
SIP Returns
Systematic Investment Plan (SIP) Calculator
SIP allows you to invest a fixed amount regularly (usually monthly) in mutual funds. It provides rupee cost averaging and helps build wealth through disciplined investing.
Formula
Where FV = future value, P = monthly SIP amount, r = expected monthly return rate, n = number of months
Example Calculation
Scenario:
Monthly SIP of ₹10,000 for 10 years at 12% p.a.
Calculation:
Monthly rate ~0.95%, n = 120 monthsResult:
₹23.23 lakh (Total investment: ₹12 lakh, Wealth gain: ₹11.23 lakh)
Key Points
- •Rupee cost averaging: Buy more units when prices are low, fewer when high
- •Removes timing risk - no need to time the market
- •Power of compounding works best with long tenure (10+ years)
- •Can increase SIP amount annually (step-up SIP) for better wealth creation
- •Minimum SIP amount is typically ₹500; can be paused or stopped anytime
Tax Implications:
- •Equity mutual funds: LTCG at 12.5% (exempt up to ₹1.25 lakh/year), STCG at 20%
- •Each SIP installment treated as separate investment for tax purposes
- •FIFO (First In First Out) method used for taxation on redemption
- •Holding period calculated separately for each installment
Disclaimer: The calculations and information provided are estimates based on the inputs provided and current rates as of November 2025. Actual results may vary. Interest rates, tax laws, and regulations are subject to change. Please consult with a qualified financial advisor or tax professional for personalized advice.