What is SIP and how is SIP return calculated?

SIP (Systematic Investment Plan) lets you invest a fixed amount monthly in mutual funds. Returns are calculated using the formula: FV = P × ((1+r)^n - 1) / r × (1+r), where P is monthly investment, r is monthly rate (annual rate ÷ 12 ÷ 100), and n is total months. The result shows how your regular investments compound over time.

What is a step-up SIP?

A step-up SIP (also called top-up SIP) increases your monthly investment by a fixed percentage each year. For example, a 10% step-up on ₹5,000 means you invest ₹5,000 in year 1, ₹5,500 in year 2, ₹6,050 in year 3, and so on. This accounts for income growth and significantly boosts long-term wealth.

What is the difference between SIP and Lumpsum investment?

In SIP you invest a fixed amount every month, averaging out market highs and lows (rupee cost averaging). In a lumpsum investment you invest the entire amount at once. SIP is suited for salaried investors building wealth gradually; lumpsum is ideal when you have a large sum ready to invest.

What is CAGR in mutual fund returns?

CAGR (Compound Annual Growth Rate) represents the steady yearly growth rate that would produce the same final value as your actual investment. For lumpsum it equals the annual return rate directly. For SIP it is calculated as ((FV / Total Invested)^(1/years) - 1) × 100.

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SIP Calculator India

Free to Use

Calculate mutual fund SIP returns, lumpsum growth, CAGR, inflation-adjusted real value, post-tax corpus and year-by-year wealth. Includes step-up SIP and goal planning.

Country

Quick Presets

Monthly Investment Amount (₹)

Expected Annual Return (%)

Investment Period10 years

1 yr30 yrs

Step-up SIP

Increase SIP annually to grow wealth faster

Inflation Rate (%)

Fund / Tax Type

₹6,00,000

Invested Amount

₹5,61,695

Total Returns

₹11,61,695

Total Value (Nominal)

Real: ₹6,48,685

Inflation-Adjusted Value (6% p.a.)

Nominal (Future ₹)

₹11,61,695

Real Value (Today's ₹)

₹6,48,685

Purchasing Power Lost

₹5,13,011

Post-Tax Corpus — LTCG @ 12.5% (₹1.25L exempt)

Gross Corpus

₹11,61,695

LTCG Tax

− ₹54,587

Net Post-Tax Corpus

₹11,07,108

* LTCG: ₹1.25L of gains exempt, remainder taxed at 12.5% (as per Finance Act 2024)

Wealth Gained

Your money grew 1.94x

CAGR on Invested

6.83%

Absolute Returns %

93.6%

Amount Invested₹6,00,000 (51.6%)

Total Returns (Gains)₹5,61,695 (48.4%)

SIP vs Lumpsum Comparison

Same total invested (₹6,00,000): SIP monthly vs all at start

Mode	Total Invested	Final Value	Difference
SIP (Monthly)	₹6,00,000	₹11,61,695	—
Lumpsum (At Start)	₹6,00,000	₹18,63,509	₹-7,01,814

Lumpsum wins here because compounding starts earlier on full corpus.

Year-by-Year Growth

Year	Invested	Returns	Total Value
Year 1	₹60,000	₹4,047	₹64,047
Year 2	₹1,20,000	₹16,216	₹1,36,216
Year 3	₹1,80,000	₹37,538	₹2,17,538
Year 4	₹2,40,000	₹69,174	₹3,09,174
Year 5	₹3,00,000	₹1,12,432	₹4,12,432

Frequently Asked Questions

Is this SIP calculator free?›

Yes, completely free. No login or payment required. You can calculate SIP returns, lumpsum growth, and goal planning as many times as you like.

What does this SIP calculator compute?›

It calculates the future value of your SIP or lumpsum investment, total amount invested, total returns, CAGR, and absolute return percentage. It also shows inflation-adjusted real value, post-tax corpus (LTCG for equity funds or slab rate for debt funds), a year-by-year growth table, SIP vs lumpsum comparison, and a reverse SIP goal planner that tells you how much to invest monthly to reach a target corpus.

How do I use the SIP calculator?›

Select SIP or Lumpsum tab. For SIP: enter monthly investment amount, expected annual return rate (use presets — 8% conservative, 12% moderate, 15% aggressive), and investment period in years. Optionally enable Step-up SIP to increase your investment annually. Set inflation rate and fund type for post-tax and real-value calculations. Results update instantly.

What return rate should I use for SIP calculations?›

This depends on the fund type. Large-cap equity mutual funds have historically delivered around 10–12% CAGR over long periods. Mid/small-cap funds may deliver higher returns (12–15%) but with higher risk. Debt funds typically return 6–8%. These are estimates — actual returns vary and past performance does not guarantee future results.

Are the SIP return calculations accurate? Is this a disclaimer?›

The calculator uses standard compound interest formulas (future value of annuity) and is mathematically accurate. However, mutual fund returns are market-linked and not guaranteed. The results shown are projections based on a fixed assumed rate. Actual returns will vary based on market conditions, fund selection, and timing. This tool is for educational and planning purposes only — consult a SEBI-registered financial advisor before investing.

What Is SIP Calculator India?

A SIP (Systematic Investment Plan) calculator computes the future value of your mutual fund investments, showing year-by-year wealth growth with compound returns. Formly's free SIP calculator supports regular SIP, step-up SIP (annual contribution increases), lumpsum investments, and reverse SIP goal planning (how much to invest monthly to reach a target corpus). Updated for Indian mutual fund taxation — LTCG at 12.5% above ₹1.25L, STCG at 20%, ELSS 80C deductions.

Why Formly's SIP Calculator India Is the Best Free Option

✓Step-up SIP modeling — calculates annual contribution increases (10–25%) for accurate wealth projections.
✓Goal planning (reverse SIP) — tells you exactly how much to invest monthly to reach ₹1 crore or any target.
✓Year-by-year growth table — visualize how your money compounds over the investment period.
✓LTCG tax impact — shows post-tax returns under 2025-26 LTCG rules.
✓Free and instant — no signup, no data collection.
✓Works for all major Indian fund categories: equity, debt, hybrid, ELSS.

Free Alternative to ET Money SIP calculator, Groww SIP calculator, Zerodha Coin calculator, Scripbox SIP calculator

→ET Money SIP calculator: ET Money pushes mutual fund recommendations. Formly gives clean projections without sales.

→Groww SIP calculator: Groww requires login for advanced features. Formly is fully free and anonymous.

→Zerodha Coin calculator: Zerodha requires an account. Formly has instant calculations with no signup.

→Scripbox SIP calculator: Scripbox limits advanced calculations to push their advisory. Formly is fully open.

Who Uses SIP Calculator India?

First-time investors

Understand how small monthly SIPs grow into significant wealth over 10–20 years.

Working professionals

Plan SIP amounts to reach specific financial goals like buying a house or retirement.

Financial advisors

Quickly run SIP projections for client goal planning discussions.

Students learning personal finance

Visualize the power of compounding and rupee cost averaging with real numbers.

NRIs investing in India

Plan NRI mutual fund SIP amounts for India-based financial goals.

Popular searches: SIP calculator India, mutual fund SIP calculator, step up SIP calculator, SIP return calculator, how much to invest for 1 crore, SIP calculator with inflation.

Looking for a detailed guide? Read our in-depth tutorial on using SIP Calculator India for professional results.

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