SIP Calculator — Know What Your Monthly Investment Can Grow Into

If you have been putting off starting a SIP because the numbers feel uncertain, this calculator is exactly what you need. Enter your monthly investment amount, the expected annual return, and how many years you plan to stay invested. You will get a clear picture of your total corpus, how much of it came from your own pocket, and how much was pure compounding gain.

Mutual fund SIPs in India have become one of the most popular wealth-building tools for salaried individuals — and for good reason. The discipline of investing a fixed amount every month, regardless of market conditions, takes emotion out of the equation.

How Rupee Cost Averaging Works in Your Favour

When markets fall, your monthly SIP buys more units. When markets rise, it buys fewer. Over time, this averaging effect lowers your overall cost of acquisition compared to investing a lumpsum at one point in time. This is why long-term SIP investors often fare better than those who try to time the market.

What Return Rate Is Realistic?

For large-cap equity mutual funds in India, a long-term return of 10 to 12 percent per annum is a commonly used planning assumption. Flexi-cap and mid-cap funds have historically delivered 12 to 14 percent over 10-year horizons. For debt funds or hybrid funds, assume 7 to 9 percent. Avoid plugging in very high rates like 18 or 20 percent — they produce impressive numbers but set unrealistic expectations.

Use the conservative end of the range when planning for goals that matter — retirement, a child’s education, or buying a home. If your investments outperform the assumption, that is a bonus.

The Power of Staying Invested Longer

Here is what compounding does over time. A monthly SIP of ₹5,000 at 12 percent annual return grows to roughly ₹11.6 lakh in 10 years. Extend the same SIP to 20 years and it becomes ₹49.5 lakh. The invested amount only doubled — but the corpus grew more than four times. That extra ₹38 lakh is entirely compounding at work, with no additional effort from you.

This is why financial advisors consistently say: start early, stay invested, and do not pause your SIP during market corrections.

SIP vs Lumpsum — Which Should You Choose?

For salaried individuals with a regular income, SIP is almost always the better approach. It removes the pressure of timing, builds a habit, and spreads risk across market cycles. Lumpsum investing works better when you already have a large amount available and markets are trading at a discount. For most people, the answer is a combination — SIP for monthly savings, and lumpsum for any bonus or windfall.

Disclaimer: Mutual fund returns are subject to market risk. This calculator provides estimates for planning purposes only. Past performance does not guarantee future results.