SIP Calculator
Estimate how much your mutual fund investments could grow. Calculate the maturity value of a monthly SIP, a step-up SIP that rises each year, or a one-time lumpsum — with a clear split of what you invest versus the wealth you gain.
How the SIP calculator works
A SIP (Systematic Investment Plan) invests a fixed amount every month, and each instalment earns returns that compound over time. The future value is calculated as:
| Type | Formula |
|---|---|
| SIP | FV = P × [((1 + i)n − 1) ÷ i] × (1 + i) |
| Lumpsum | FV = P × (1 + r)t |
Here P is the instalment, i is the monthly rate (annual return ÷ 12), n is the number of months, r is the annual return and t is years. A step-up SIP raises the monthly amount by a fixed percentage every year, so the calculator works it out month by month.
Worked example
A ₹10,000 monthly SIP for 10 years at an assumed 12% return grows to about ₹23.2 lakh. You would have invested ₹12 lakh, so roughly ₹11.2 lakh is wealth gained through compounding. A 10% annual step-up on the same SIP pushes the maturity value significantly higher.
Good to know
Why step-up?
Increasing your SIP as your income grows dramatically boosts the final corpus, because the larger later instalments still get years to compound.
Taxation of returns
Equity fund gains held over 12 months are long-term and taxed at 12.5% above ₹1.25 lakh a year. See our Capital Gains Calculator.
SIP vs lumpsum
SIP averages your cost across market ups and downs (rupee-cost averaging); lumpsum suits money you can invest at once and leave untouched.
Related tools
See our Salary Calculator, Capital Gains Calculator and HRA Calculator.
Frequently asked questions
How is SIP maturity value calculated?
Each monthly instalment is compounded at the monthly rate of return for the months remaining until maturity, and the values are added up. The standard formula is FV = P × [((1 + i)^n − 1) / i] × (1 + i), where i is the monthly return and n is the number of months.
What is a step-up SIP?
A step-up or top-up SIP increases your monthly investment by a fixed percentage every year, usually in line with salary growth, which builds a much larger corpus over time.
What return should I assume?
Equity mutual funds have historically delivered around 10–14% over the long term, but returns are not guaranteed. Many investors use 12% as a planning assumption and a lower figure for debt funds.
Is the SIP maturity amount guaranteed?
No. Mutual funds are market-linked, so the actual value depends on market performance. The calculator gives an estimate based on the constant return you assume.
How are SIP returns taxed?
For equity funds, gains on units held over 12 months are long-term capital gains taxed at 12.5% above ₹1.25 lakh per year; shorter holdings are taxed at 20%. Each SIP instalment has its own holding period.
SIP or lumpsum — which is better?
SIP suits regular savers and averages your purchase cost over time, while lumpsum can work better when you have a large sum to invest and a long horizon. This tool lets you compare both.
Disclaimer: This calculator is for general information and educational purposes only and is not investment advice. Mutual fund investments are subject to market risks; returns are not guaranteed. Read all scheme documents carefully or consult a qualified adviser. © ClearTax Advisors.