What is a SIP calculator?
A SIP (Systematic Investment Plan) calculator estimates the future value of your monthly mutual fund investments based on the amount, investment tenure and expected annual return, using compound growth.
How is SIP return calculated?
SIP returns are calculated by compounding each monthly instalment at the expected rate of return until maturity. The formula is FV = P × [(1 + r)^n − 1] / r × (1 + r), where P is the SIP amount, r is the monthly rate of return and n is the number of instalments.
What is a step-up SIP?
A step-up (or top-up) SIP automatically increases your SIP instalment by a fixed percentage or amount at regular intervals, helping your investment keep pace with rising income and inflation.
Is 12% a realistic SIP return assumption in India?
Long-term equity mutual funds and index funds in India have historically delivered 10–14% annualised returns over 10+ year periods, though actual returns vary with market conditions and are never guaranteed.
SIP vs lumpsum — which is better?
SIP works well for salaried investors as it averages out purchase cost over time (rupee cost averaging) and builds discipline. Lumpsum can outperform SIP when invested at a market low with a long horizon. Use this calculator to compare both for your own numbers.