A Systematic Investment Plan (SIP) lets you invest a fixed amount in a mutual fund every month. Over time, the power of compounding turns even small, regular investments into significant wealth. India had over 10.4 crore active SIP accounts as of 2026, making it the most popular retail investing method in the country.
How Does the SIP Calculator Work?
Enter your monthly SIP amount, the expected annual return rate, and the investment duration. The calculator applies the standard compound-interest formula for recurring investments: M = P × [(1 + i)ⁿ − 1] / i × (1 + i), where P is the monthly amount, i is the monthly interest rate, and n is the number of months. The result shows your estimated corpus split into invested amount and estimated returns.
Benefits of Starting a SIP Early
The earlier you start, the more you benefit from compounding. A ₹5,000 monthly SIP started at age 25 can grow to over ₹1.75 crore by age 55 at 12% annual return — but the same SIP started at 35 yields only around ₹50 lakh. Time in the market, not timing the market, is the key advantage of SIP investing.
Which Return Rate Should You Assume?
Equity mutual funds in India have historically delivered 10–14% CAGR over the long term. Debt funds typically return 6–8%. For a balanced or hybrid fund, 9–11% is a reasonable planning estimate. Always use conservative assumptions — financial planners often recommend 10–12% for equity SIPs as a long-term benchmark.
Frequently Asked Questions
Is SIP the same as a mutual fund?
No. SIP is a method of investing — it is a payment mode that lets you invest a fixed amount regularly into a mutual fund. The mutual fund is the actual investment product.
Can I stop or modify my SIP?
Yes. You can pause, increase, decrease, or stop your SIP at any time without penalty. The units already purchased remain invested in the fund.
Is SIP return guaranteed?
No. SIP returns depend on the mutual fund's market performance. The calculator shows estimated returns based on an assumed constant return rate, which is not guaranteed.
What is the minimum SIP amount?
Most mutual funds allow SIPs starting from ₹100 per month. Some schemes require a minimum of ₹500. There is no upper limit.
Does SIP give better returns than FD?
Over long horizons (10+ years), equity SIPs have historically outperformed FDs significantly. However, SIP returns are market-linked and not guaranteed, unlike FD interest rates.