What return rate should I assume for SIP calculations?

Conservatively assume 10–12% for equity mutual funds and 6–8% for debt funds, based on long-term Indian historical averages. For aggressive growth portfolios, some investors use 12-15%. However, past performance does not guarantee future returns, and actual returns will depend on market conditions, fund selection, and the specific scheme's performance over your investment period.

Are SIP returns taxable?

Yes, SIP returns are taxable. For equity mutual funds held over 12 months, long-term capital gains (LTCG) of 10% applies on gains above ₹1.25 lakh per year (rate as of recent budgets). For debt funds, gains are taxed as per your income slab. For equity funds sold within 12 months, short-term capital gains (STCG) at 15% applies. Consider tax implications when planning your investment horizon.

What is the difference between SIP and lump sum investment?

SIP involves investing a fixed amount monthly, which helps in rupee-cost averaging — you buy more units when prices are low and fewer when prices are high. Lump sum involves investing a large amount at once, which works better when you have a significant corpus and the market is undervalued. SIP is generally recommended for regular income investors, while lump sum suits those with inheritances or windfalls.

Can I stop or change my SIP mid-way?

Yes — SIPs are completely flexible. You can pause your SIP for 1-6 months (depending on the fund house), reduce or increase the installment amount, or stop it entirely at any time without any penalty. Some funds also offer a step-up SIP feature where you can increase your investment amount annually. You can also switch between funds within the same AMC without exiting the SIP.

Does this calculator account for inflation?

No, this calculator gives nominal future value in absolute rupees. To estimate real (inflation-adjusted) returns, subtract expected inflation (typically 5-6% for India) from your expected return rate. For example, if you expect 12% returns and inflation is 6%, use 6% as your input to get inflation-adjusted values. Alternatively, use our Real Returns Calculator for this calculation.

What return rate should I assume for SIP calculations?

Conservatively assume 10–12% for equity mutual funds and 6–8% for debt funds, based on long-term Indian historical averages. For aggressive growth portfolios, some investors use 12-15%. However, past performance does not guarantee future returns, and actual returns will depend on market conditions, fund selection, and the specific scheme's performance over your investment period.

Are SIP returns taxable?

Yes, SIP returns are taxable. For equity mutual funds held over 12 months, long-term capital gains (LTCG) of 10% applies on gains above ₹1.25 lakh per year (rate as of recent budgets). For debt funds, gains are taxed as per your income slab. For equity funds sold within 12 months, short-term capital gains (STCG) at 15% applies. Consider tax implications when planning your investment horizon.

What is the difference between SIP and lump sum investment?

SIP involves investing a fixed amount monthly, which helps in rupee-cost averaging — you buy more units when prices are low and fewer when prices are high. Lump sum involves investing a large amount at once, which works better when you have a significant corpus and the market is undervalued. SIP is generally recommended for regular income investors, while lump sum suits those with inheritances or windfalls.

Can I stop or change my SIP mid-way?

Yes — SIPs are completely flexible. You can pause your SIP for 1-6 months (depending on the fund house), reduce or increase the installment amount, or stop it entirely at any time without any penalty. Some funds also offer a step-up SIP feature where you can increase your investment amount annually. You can also switch between funds within the same AMC without exiting the SIP.

Does this calculator account for inflation?

No, this calculator gives nominal future value in absolute rupees. To estimate real (inflation-adjusted) returns, subtract expected inflation (typically 5-6% for India) from your expected return rate. For example, if you expect 12% returns and inflation is 6%, use 6% as your input to get inflation-adjusted values. Alternatively, use our Real Returns Calculator for this calculation.

Finance

SIP Calculator

Name: SIP Calculator
Availability: InStock
Author: CalculatorDesk

Calculate returns on your mutual fund SIP (Systematic Investment Plan) online. See compounding growth, total invested, and estimated maturity value.

By CalculatorDeskUpdated 2 Jul 2026

Monthly investment

₹

₹ 500₹ 2,00,000

Expected annual return

1%30%

Duration

yrs

1 yrs40 yrs

Estimated maturity value

₹23,23,391

Invested: ₹12,00,000
Est. returns: ₹11,23,391

Invested vs returns

Invested51.6%
Returns48.4%

What is SIP?

A Systematic Investment Plan (SIP) allows you to invest a fixed amount regularly (typically monthly) into mutual funds. SIPs leverage rupee-cost averaging to buy more units when prices are low and fewer when prices are high. Long-term SIP returns typically compound at 10-15% p.a. for equity funds.

A Systematic Investment Plan (SIP) is an investment path offered by mutual funds, allowing you to invest small sums regularly instead of making heavy one-time lumpsum payments. By spreading out investments, you mitigate market timing risks and benefit from compounding growth over years.

The Power of Compounding: Compounding is what makes SIPs so effective for building wealth. When you invest through a SIP, you earn returns not just on your principal amount, but also on the returns generated in previous months. Over long periods (10+ years), the compounding effect can often lead to your accumulated gains exceeding your total invested amount.

Formula

SIP maturity is calculated using the future value of an annuity formula, assuming monthly contributions are made at the start of each compounding period.

Future value with monthly contributions at the start of each period:

FV = P × [(1 + i)^n − 1] / i × (1 + i)

P = monthly investment
i = monthly rate (annual rate ÷ 12 ÷ 100)
n = total months

Worked Example

Worked Example Model:

Monthly Investment (P): ₹10,000
Expected Annual Return (R): 12% p.a.
Duration (t): 10 Years (120 months)

Steps:

Convert annual return to monthly rate: i = 12% / 12 / 100 = 0.01 per month.
Calculate total months: n = 10 years * 12 = 120 payments.
Apply the SIP formula: FV = P * [((1 + i)^n - 1) / i] * (1 + i).
Compute: (1.01)^120 = 3.30039.
Execute: FV = ₹10,000 * [(3.30039 - 1) / 0.01] * (1.01) = ₹23,23,391.

Total Invested: ₹12,00,000. Estimated Gains: ₹11,23,391. Projected Maturity: ₹23,23,391.

How to use this calculator

Specify your monthly investment amount, expected annual return rate, and duration of the investment in years. The calculator projects the total amount you will invest, your estimated returns, and the projected maturity value.

Share your target: Planning for a goal? Play with the monthly amount and expected return to reach your target corpus, then click the "Share" or "WhatsApp" button at the bottom of the result panel to share your exact projected roadmap.

Frequently asked questions

Long-run equity return benchmarks

Rates verified 5 July 2026

Nifty 50 TRI (10-yr CAGR)	~13.5%
Equity MF (long-run est.)	12% – 14%
Hybrid MF (est.)	9% – 11%
Debt MF (est.)	6% – 8%

Indicative rates compiled from public bank websites, RBI, and the Ministry of Finance for reference only. Actual rates depend on credit profile, tenure and product variant — confirm with the lender before applying.