SIP Calculator

A SIP (Systematic Investment Plan) is a method of investing a fixed amount regularly (typically monthly) in mutual funds. It helps average out market volatility through rupee-cost averaging and instills financial discipline. You can start with as little as ₹500 per month.

SIP returns are calculated using the Future Value of Annuity formula: FV = P × ((1+r)^n - 1)/r × (1+r), where P is monthly investment, r is monthly rate of return (annual rate ÷ 1200), and n is total months. This calculator also supports step-up SIP where your monthly contribution increases each year.

Historically, Indian equity mutual funds have delivered 10-14% CAGR over 10+ year periods. Large cap funds average ~10-12%, while mid/small cap funds may deliver 12-15%. However, past performance does not guarantee future returns. We recommend using a conservative estimate of 10-12% for planning.

A step-up SIP allows you to increase your monthly SIP amount by a fixed percentage each year. For example, a 10% step-up on ₹10,000/month means you invest ₹11,000/month in year 2, ₹12,100/month in year 3, and so on. This aligns with annual salary increments and can significantly boost your final corpus.

Inflation-adjusted (or real) value shows what your future corpus will be worth in today's money. If ₹1 Crore after 20 years has the same purchasing power as ~₹31 lakhs today (at 6% inflation), you'll know how much you actually need to save. Always plan with inflation in mind.