SuperCalc

SIP Calculator

An SIP (Systematic Investment Plan) lets you invest a fixed amount in mutual funds every month, riding rupee cost averaging and the power of compounding. This calculator shows your corpus build-up year by year, with step-up SIP support, inflation in today's-rupees view, and a clear marker for the year your returns first outpace your contributions.

Wealth planner

Wealth Projection

Project where your money goes — building it up, drawing it down, or both across your full timeline.

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₹
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years
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Common: 5–10% as your income grows. 0 to keep contributions flat.

Inflation (optional)

Adds a 'today's money' view so big future numbers are honest about lost purchasing power.

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0 to ignore

Your projection
Future value
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Contributed
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Returns
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How it works

SIP works by buying mutual fund units at the same fixed amount each month — so when prices fall, you buy more units; when prices rise, fewer. Over time this averages out your purchase cost (rupee cost averaging) and removes the need to time the market.

The math: each month, your contribution is added to a balance that earns the expected return rate. Returns compound monthly. With a step-up, your contribution grows by a fixed percentage each year — modeling the natural rise in your income over a career.

For Indian equity SIPs, 12–14% nominal annual return is the historical long-term average for Nifty 50 / large-cap funds. Add a 6% inflation rate to see what your corpus is really worth — a ₹5Cr corpus in 25 years buys what about ₹1.16Cr buys today.

Step-up SIPs are powerful: a 10% annual increase to your monthly contribution roughly doubles your final corpus compared to flat SIPs, because more money is invested in later years where compound returns are largest.

FAQ

What is SIP and how does it work?
SIP stands for Systematic Investment Plan. You invest a fixed amount in a mutual fund every month, automatically. Over years, your contributions compound and benefit from rupee cost averaging — buying more units when prices are low, fewer when high. This calculator projects the future corpus based on your monthly amount, expected return, and time horizon.
SIP vs lumpsum — which is better?
If you have the money today and the market is undervalued, lumpsum mathematically wins (more time in the market). But for most people, SIP is better because: (1) you don't need a large upfront amount, (2) it disciplines monthly investing from your paycheck, (3) it removes the psychological pressure of timing the market.
What return rate should I assume for SIP?
Indian equity mutual funds (Nifty 50, large-cap) have averaged 12–14% over 20+ year periods. Mid-cap and small-cap have higher long-term returns but more volatility. Debt funds: 6–8%. Hybrid funds: 8–11%. We default to 12% — adjust to match your fund category.
What's a step-up SIP?
A step-up SIP increases your monthly contribution by a fixed percentage each year, usually 10%. So if you start at ₹10,000/mo with 10% step-up, year 2 you invest ₹11,000/mo, year 3 ₹12,100/mo, etc. This roughly doubles your corpus over 25 years vs. a flat SIP — a huge lever.
Should I do SIP for ELSS (tax-saving funds)?
Yes — ELSS is a great SIP candidate. It has a 3-year lock-in per installment, qualifies for 80C deduction (₹1.5L/year), and historically returns 13–15% over long periods. The lock-in is short compared to PPF (15 years) or NPS (until 60).
Does this calculator account for taxes?
Not currently. Equity mutual funds in India are taxed at 12.5% LTCG on gains above ₹1.25L/year (held > 1 year). For long-term SIPs, this typically reduces the final corpus by 4–8% vs. the tax-free projection. We're working on a tax-aware version.

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